Under Armour (NYSE:UAA) Shares Gap Down - Should You Sell?

Key Points

• Under Armour shares gapped down sharply after the company’s latest report and outlook, falling from a prior close of $6.06 to an opening price of $5.18 and trading even lower intraday.
• The company matched EPS expectations with a $0.03 loss and beat some revenue estimates, but revenue still declined slightly year over year and international gains only partly offset weakness in North America.
• Investor concern is being driven mainly by weak guidance and margin pressure: Under Armour forecast an annual revenue decline and its initial fiscal 2027 EPS outlook of $0.08 to $0.12 came in well below the Street estimate of $0.23.

Shares of Under Armour, Inc. (NYSE:UAA - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $6.06, but opened at $5.18. Under Armour shares last traded at $4.9550, with a volume of 6,926,978 shares changing hands.

Key Under Armour News

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

• Positive Sentiment: Under Armour matched analysts’ EPS estimate of a $0.03 loss and improved from a $0.08 loss a year ago, showing some earnings progress despite ongoing pressure. Article Title
• Positive Sentiment: Revenue came in ahead of some expectations in the quarter, and international sales gains helped offset weaker North American performance. Article Title
• Neutral Sentiment: The company also announced a collaboration with Persona AI to explore performance materials for humanoid robotics, which is an early-stage partnership and not likely to affect near-term results. Article Title
• Negative Sentiment: The main driver behind the stock weakness is the company’s bearish outlook: Under Armour forecast a decline in annual revenue as it faces weak consumer spending and macro uncertainty in North America. Article Title
• Negative Sentiment: Investors are also reacting to margin pressure, with rising costs weighing on earnings and prompting a steep selloff after the report. Article Title
• Negative Sentiment: Management’s initial fiscal 2027 EPS guidance of $0.08 to $0.12 fell well below the Street’s $0.23 estimate, reinforcing concerns about slower growth ahead. Article Title

Analysts Set New Price Targets

Several equities analysts have weighed in on the stock. Argus upgraded shares of Under Armour to a "hold" rating in a report on Friday, January 16th. UBS Group restated a "buy" rating and set a $11.00 price target on shares of Under Armour in a report on Monday, February 9th. Wall Street Zen upgraded Under Armour from a "sell" rating to a "hold" rating in a report on Saturday, January 17th. Truist Financial set a $6.00 target price on Under Armour in a research note on Wednesday, January 14th. Finally, Barclays set a $8.00 target price on Under Armour and gave the company an "equal weight" rating in a research report on Monday, February 9th. Two investment analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, thirteen have issued a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat.com, Under Armour currently has a consensus rating of "Hold" and an average target price of $6.91.

Under Armour Stock Down 18.1%

The firm has a 50 day moving average price of $6.29 and a 200-day moving average price of $5.73. The company has a current ratio of 1.43, a quick ratio of 0.92 and a debt-to-equity ratio of 0.27. The firm has a market cap of $2.11 billion, a PE ratio of -4.07, a PEG ratio of 2.55 and a beta of 1.73.

Under Armour (NYSE:UAA - Get Free Report) last released its earnings results on Tuesday, May 12th. The company reported ($0.03) earnings per share for the quarter, hitting analysts' consensus estimates of ($0.03). Under Armour had a negative net margin of 10.44% and a positive return on equity of 1.48%. Under Armour's revenue was down .8% compared to the same quarter last year. During the same quarter last year, the business earned ($0.08) EPS. Under Armour has set its FY 2027 guidance at 0.080-0.120 EPS. Research analysts forecast that Under Armour, Inc. will post 0.12 EPS for the current fiscal year.

Institutional Investors Weigh In On Under Armour

Large investors have recently modified their holdings of the company. Uhlmann Price Securities LLC purchased a new stake in shares of Under Armour during the 3rd quarter worth $46,000. Blair William & Co. IL increased its holdings in Under Armour by 40.0% in the fourth quarter. Blair William & Co. IL now owns 5,164 shares of the company's stock valued at $26,000 after buying an additional 1,476 shares during the last quarter. State of Wyoming acquired a new stake in Under Armour in the second quarter valued at $44,000. Hantz Financial Services Inc. lifted its holdings in Under Armour by 202.7% during the 4th quarter. Hantz Financial Services Inc. now owns 8,455 shares of the company's stock worth $42,000 after buying an additional 5,662 shares during the last quarter. Finally, LRI Investments LLC purchased a new stake in Under Armour during the 3rd quarter worth about $50,000. 34.58% of the stock is owned by hedge funds and other institutional investors.

About Under Armour

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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