Under Armour (NYSE:UAA) Shares Gap Up Following Insider Buying Activity

Key Points

• Under Armour shares gapped up from $4.92 to $5.18 following insider buying activity, with Director Dawn N. Fitzpatrick purchasing 100,000 shares valued at $493,000.
• Wall Street analysts have mixed views, with target prices ranging from $6.00 to $9.00 and an average rating of "Hold" for the stock.
• The company's recent earnings report showed a net margin of 1.99% and a slight revenue decline of 4.2% year-over-year, missing EPS estimates by $0.01.

Shares of Under Armour, Inc. (NYSE:UAA - Get Free Report) gapped up prior to trading on Friday following insider buying activity. The stock had previously closed at $4.92, but opened at $5.18. Under Armour shares last traded at $5.17, with a volume of 5,652,944 shares traded.

Specifically, Director Dawn N. Fitzpatrick purchased 100,000 shares of the firm's stock in a transaction on Wednesday, August 13th. The stock was purchased at an average cost of $4.93 per share, for a total transaction of $493,000.00. Following the completion of the purchase, the director directly owned 133,696 shares in the company, valued at $659,121.28. This trade represents a 296.77% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on UAA. Barclays reduced their target price on 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. BMO Capital Markets dropped their price objective on Under Armour from $12.00 to $9.00 and set an "outperform" rating for the company in a report on Wednesday, May 14th. The Goldman Sachs Group began coverage on Under Armour in a research report on Wednesday, July 2nd. They set a "neutral" rating and a $7.00 price objective for the company. Wells Fargo & Company increased their target price on Under Armour from $4.00 to $5.00 and gave the company an "equal weight" rating in a research report on Wednesday, May 14th. Finally, Truist Financial decreased their price target on Under Armour from $9.00 to $7.00 and set a "hold" rating for the company in a research note on Wednesday, May 14th. Four analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and three have assigned a buy rating to the stock. Based on data from MarketBeat.com, Under Armour currently has an average rating of "Hold" and an average price target of $6.74.

Under Armour Stock Performance

The company has a 50-day simple moving average of $6.68 and a two-hundred day simple moving average of $6.60. The company has a quick ratio of 0.93, a current ratio of 1.53 and a debt-to-equity ratio of 0.21. The firm has a market cap of $2.22 billion, a PE ratio of 23.48, a PEG ratio of 2.36 and a beta of 1.61.

Under Armour (NYSE:UAA - Get Free Report) last issued its quarterly earnings results on Friday, August 8th. The company reported $0.02 EPS for the quarter, missing analysts' consensus estimates of $0.03 by ($0.01). Under Armour had a net margin of 1.99% and a return on equity of 7.24%. The firm had revenue of $1.13 billion for the quarter, compared to analysts' expectations of $1.13 billion. During the same period in the prior year, the company earned $0.01 EPS. The firm's quarterly revenue was down 4.2% on a year-over-year basis. As a group, equities research analysts forecast that Under Armour, Inc. will post 0.3 earnings per share for the current year.

Institutional Trading of Under Armour

Institutional investors have recently added to or reduced their stakes in the stock. Northern Trust Corp increased its stake in Under Armour by 18.9% in the 4th quarter. Northern Trust Corp now owns 1,729,796 shares of the company's stock worth $14,323,000 after acquiring an additional 275,131 shares during the last quarter. JPMorgan Chase & Co. grew its position in Under Armour by 36.5% during the 4th quarter. JPMorgan Chase & Co. now owns 554,525 shares of the company's stock worth $4,591,000 after acquiring an additional 148,280 shares during the last quarter. Eisler Capital Management Ltd. bought a new position in Under Armour during the 4th quarter worth approximately $2,514,000. Alyeska Investment Group L.P. grew its position in shares of Under Armour by 55.7% in the 4th quarter. Alyeska Investment Group L.P. now owns 9,789,553 shares of the company's stock worth $81,057,000 after buying an additional 3,503,006 shares during the last quarter. Finally, ABC Arbitrage SA bought a new stake in shares of Under Armour in the 1st quarter worth approximately $3,233,000. Hedge funds and other institutional investors own 34.58% of the company's stock.

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.

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