Under Armour (NYSE:UAA) Shares Gap Down After Earnings Miss

Key Points

• Under Armour's shares dropped significantly, opening at $5.28 after closing at $6.64, due to disappointing quarterly earnings that missed analysts' expectations.
• The company reported $0.02 earnings per share, falling short of the expected $0.03, and experienced a 4.2% decline in revenue year-over-year.
• Wall Street has mixed sentiments on the stock, with various brokerages adjusting their price targets and ratings, leading to a current consensus rating of "Hold" with a price target of $7.31.

Shares of Under Armour, Inc. (NYSE:UAA - Get Free Report) gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $6.64, but opened at $5.28. Under Armour shares last traded at $5.38, with a volume of 12,616,973 shares.

The company reported $0.02 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.03 by ($0.01). The company had revenue of $1.13 billion during the quarter, compared to analyst estimates of $1.13 billion. Under Armour had a negative net margin of 3.90% and a positive return on equity of 7.04%. The firm's revenue was down 4.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.01 earnings per share.

Analyst Upgrades and Downgrades

UAA has been the topic of several recent analyst reports. The Goldman Sachs Group initiated coverage on Under Armour in a report on Wednesday, July 2nd. They issued a "neutral" rating and a $7.00 target price on the stock. Telsey Advisory Group restated a "market perform" rating and issued a $7.00 price objective on shares of Under Armour in a research note on Monday, August 4th. Robert W. Baird upped their price objective on shares of Under Armour from $6.00 to $7.00 and gave the company a "neutral" rating in a research note on Wednesday, May 14th. JPMorgan Chase & Co. decreased their price objective on shares of Under Armour from $6.00 to $5.00 and set an "underweight" rating for the company in a research note on Friday. Finally, Barclays decreased their price objective on shares of Under Armour from $8.00 to $6.00 and set an "equal weight" rating for the company in a research note on Monday, May 12th. Four investment analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat.com, Under Armour has an average rating of "Hold" and an average price target of $7.17.

Insider Transactions at Under Armour

In other Under Armour news, insider Mehri Shadman sold 16,287 shares of the stock in a transaction dated Tuesday, June 3rd. The shares were sold at an average price of $6.14, for a total value of $100,002.18. Following the completion of the transaction, the insider directly owned 191,796 shares of the company's stock, valued at approximately $1,177,627.44. This trade represents a 7.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 15.60% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Intech Investment Management LLC purchased a new position in Under Armour in the second quarter valued at about $1,897,000. Creative Planning increased its stake in shares of Under Armour by 70.8% during the 2nd quarter. Creative Planning now owns 30,457 shares of the company's stock worth $208,000 after purchasing an additional 12,620 shares in the last quarter. SG Americas Securities LLC increased its stake in shares of Under Armour by 92.5% during the 2nd quarter. SG Americas Securities LLC now owns 150,836 shares of the company's stock worth $1,030,000 after purchasing an additional 72,486 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS increased its stake in shares of Under Armour by 13.4% during the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 28,514 shares of the company's stock worth $195,000 after purchasing an additional 3,378 shares in the last quarter. Finally, Police & Firemen s Retirement System of New Jersey increased its stake in shares of Under Armour by 4.5% during the 2nd quarter. Police & Firemen s Retirement System of New Jersey now owns 71,967 shares of the company's stock worth $492,000 after purchasing an additional 3,094 shares in the last quarter. 34.58% of the stock is owned by hedge funds and other institutional investors.

Under Armour Stock Performance

The company has a current ratio of 2.10, a quick ratio of 1.25 and a debt-to-equity ratio of 0.31. The stock's 50 day moving average price is $6.81 and its two-hundred day moving average price is $6.68. The firm has a market capitalization of $2.33 billion, a PE ratio of 24.68, a PEG ratio of 0.76 and a beta of 1.61.

Under Armour Company Profile

Under Armour, Inc, together with its subsidiaries, engages developing, marketing, and distributing performance apparel, footwear, and accessories for men, women, and youth. The company provides its apparel in compression, fitted, and loose fit types. It also offers footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications.