Under Armour (NYSE:UAA) Shares Gap Down - Here's Why

Key Points

• Under Armour shares fell 4.9% from a prior close of $6.40 to open at $6.10, amid concerns about the company’s outlook and weak consumer demand.
• The company beat first-quarter EPS expectations, reporting $0.05 versus the $0.02 consensus, but revenue declined 3.2% year over year. Management forecast a steeper full-year revenue decline, while second-quarter EPS guidance of $(0.03) to $(0.01) was well below analyst estimates.
• Wall Street remains cautious, with a consensus “Reduce” rating and an average price target of $5.91; unusually heavy put-option buying ahead of the report also indicated elevated bearish sentiment.

Under Armour, Inc. (NYSE:UAA - Get Free Report)'s share price gapped down before the market opened on Friday . The stock had previously closed at $6.40, but opened at $6.10. Under Armour shares last traded at $6.0850, with a volume of 3,274,077 shares.

Key Headlines Impacting Under Armour

Here are the key news stories impacting Under Armour this week:

• Positive Sentiment: Under Armour reported fiscal first-quarter earnings of $0.05 per share, exceeding the $0.02 analyst consensus and improving from $0.02 a year earlier. The company also maintained its full-year profitability outlook. Under Armour Q1 Earnings Top Estimates
• Neutral Sentiment: The quarterly report showed Under Armour swinging to a small profit despite challenging conditions in North America and Asia-Pacific. However, revenue declined 3.2% year over year, indicating that earnings improvements have not yet been matched by sales growth. Under Armour Posts Lower Revenue on Soft Demand
• Negative Sentiment: Management forecast a steeper full-year revenue decline, citing weak consumer spending and macroeconomic uncertainty, particularly in North America. The updated outlook suggests demand remains a major obstacle for the turnaround. Under Armour Forecasts Steeper Annual Sales Decline
• Negative Sentiment: Second-quarter fiscal 2027 EPS guidance of $(0.03) to $(0.01) was well below the $0.06 consensus estimate. Full-year EPS guidance of $0.08 to $0.12 is centered near analyst expectations, but the weak near-term outlook raises concerns about the pace of recovery. Under Armour Cuts Annual Revenue Outlook
• Negative Sentiment: Unusually heavy options activity preceded the report, with traders buying 18,771 put options—about 476% above typical daily volume—signaling elevated hedging or bearish speculation. Under Armour Options Activity

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on UAA shares. Zacks Research cut shares of Under Armour from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 12th. Barclays set a $5.00 price target on Under Armour and gave the stock an "equal weight" rating in a research report on Wednesday, May 13th. Citigroup reiterated a "sell" rating and issued a $4.75 price objective (down from $6.20) on shares of Under Armour in a research report on Wednesday, May 13th. Weiss Ratings reissued a "sell (d-)" rating on shares of Under Armour in a research note on Tuesday, July 21st. Finally, Stifel Nicolaus set a $6.00 target price on Under Armour and gave the stock a "hold" rating in a report on Tuesday, May 12th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, fourteen have issued a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and an average price target of $5.91.

Under Armour Price Performance

The stock's 50-day moving average price is $6.41 and its 200-day moving average price is $6.36. The company has a market capitalization of $2.66 billion, a price-to-earnings ratio of -5.40, a price-to-earnings-growth ratio of 2.23 and a beta of 1.67. The company has a quick ratio of 1.08, a current ratio of 1.62 and a debt-to-equity ratio of 0.42.

Under Armour (NYSE:UAA - Get Free Report) last issued its quarterly earnings results on Friday, August 7th. The company reported $0.05 earnings per share for the quarter, beating analysts' consensus estimates of $0.02 by $0.03. Under Armour had a negative net margin of 9.98% and a positive return on equity of 3.01%. During the same period last year, the company earned $0.02 earnings per share. The company's revenue for the quarter was down 3.2% on a year-over-year basis. Under Armour has set its FY 2027 guidance at 0.080-0.120 EPS and its Q2 2027 guidance at -0.030--0.010 EPS. Equities research analysts anticipate that Under Armour, Inc. will post 0.11 earnings per share for the current year.

Insider Activity at Under Armour

In other news, major shareholder V Prem Et Al Watsa bought 739,521 shares of the stock in a transaction dated Wednesday, May 13th. The stock was bought at an average cost of $4.97 per share, with a total value of $3,675,419.37. Following the purchase, the insider owned 44,179,116 shares of the company's stock, valued at approximately $219,570,206.52. This represents a 1.70% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Over the last ninety days, insiders acquired 1,178,344 shares of company stock valued at $5,865,147. 15.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Under Armour

Several large investors have recently made changes to their positions in the company. Blair William & Co. IL lifted its holdings in Under Armour by 40.0% during the 4th quarter. Blair William & Co. IL now owns 5,164 shares of the company's stock worth $26,000 after purchasing an additional 1,476 shares during the last quarter. Vident Advisory LLC boosted its stake in Under Armour by 13.6% in the 4th quarter. Vident Advisory LLC now owns 12,651 shares of the company's stock valued at $63,000 after purchasing an additional 1,512 shares during the period. NewEdge Advisors LLC grew its holdings in Under Armour by 9.4% in the 1st quarter. NewEdge Advisors LLC now owns 23,908 shares of the company's stock valued at $141,000 after buying an additional 2,061 shares in the last quarter. HUB Investment Partners LLC grew its holdings in Under Armour by 12.9% in the 2nd quarter. HUB Investment Partners LLC now owns 21,810 shares of the company's stock valued at $149,000 after buying an additional 2,489 shares in the last quarter. Finally, M&T Bank Corp increased its position in Under Armour by 23.2% during the 2nd quarter. M&T Bank Corp now owns 13,296 shares of the company's stock worth $91,000 after buying an additional 2,504 shares during the period. Institutional investors and hedge funds own 34.58% of the company's stock.

Under Armour Company Profile

Under Armour, Inc NYSE: UAA is a global designer, marketer and distributor of performance athletic apparel, footwear and accessories. The company's product portfolio spans a range of categories including training and running shoes, performance apparel engineered to manage moisture and temperature, and a variety of accessories such as bags, socks and headwear. Under Armour positions its offerings to serve athletes at every level—from professionals to everyday fitness enthusiasts—by combining innovative fabrics, advanced footwear technology and functional design.

Founded in 1996 by Kevin Plank, a former University of Maryland football player, Under Armour initially gained recognition for its moisture-wicking T-shirts, which provided a lightweight alternative to traditional cotton.

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