Under Armour (NYSE:UAA) Stock Price Down 6.1% - Here's Why

Key Points

• Under Armour shares fell 6.1% to about $5.74 in midday trading, with volume significantly below the stock’s average session volume.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating and an average price target of $5.90, with recent actions including a Truist target cut to $5 and a Zacks downgrade to Hold.
• The company beat quarterly EPS estimates ($0.05 versus $0.02), but revenue declined 3.2% year over year to $1.10 billion and Under Armour reported a negative net margin. Meanwhile, insiders bought more than 1.17 million shares over the past three months.

Under Armour, Inc. (NYSE:UAA - Get Free Report)'s stock price was down 6.1% during mid-day trading on Monday . The company traded as low as $5.69 and last traded at $5.7350. 1,465,084 shares traded hands during trading, a decline of 85% from the average session volume of 9,598,761 shares. The stock had previously closed at $6.11.

Wall Street Analyst Weigh In

Several research analysts have weighed in on UAA shares. Wall Street Zen raised shares of Under Armour from a "sell" rating to a "hold" rating in a research note on Sunday, May 24th. Stifel Nicolaus set a $6.00 price objective on shares of Under Armour and gave the stock a "hold" rating in a research report on Tuesday, May 12th. Zacks Research downgraded shares of Under Armour from a "strong-buy" rating to a "hold" rating in a report on Tuesday, May 12th. Weiss Ratings reissued a "sell (d-)" rating on shares of Under Armour in a research report on Tuesday, July 21st. Finally, Truist Financial decreased their price target on Under Armour from $8.00 to $5.00 and set a "hold" rating on the stock in a research note on Wednesday, May 13th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, fourteen have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, Under Armour currently has a consensus rating of "Hold" and an average price target of $5.90.

Under Armour Price Performance

The company has a market capitalization of $2.39 billion, a PE ratio of -4.88, a price-to-earnings-growth ratio of 2.12 and a beta of 1.67. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.81 and a quick ratio of 0.96. The stock's 50 day simple moving average is $6.41 and its 200-day simple moving average is $6.37.

Under Armour (NYSE:UAA - Get Free Report) last announced its quarterly earnings data 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 9.99% and a positive return on equity of 4.04%. The firm had revenue of $1.10 billion during the quarter, compared to analysts' expectations of $1.11 billion. During the same quarter in the previous year, the business posted $0.02 earnings per share. The business's quarterly revenue was down 3.2% compared to the same quarter last year. 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. As a group, equities analysts forecast that Under Armour, Inc. will post 0.11 earnings per share for the current fiscal year.

Insider Activity at Under Armour

In related news, major shareholder V Prem Et Al Watsa acquired 739,521 shares of the business's stock in a transaction dated Wednesday, May 13th. The shares were acquired at an average price of $4.97 per share, with a total value of $3,675,419.37. Following the completion of the transaction, the insider owned 44,179,116 shares of the company's stock, valued at $219,570,206.52. The trade was a 1.70% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Insiders have acquired a total of 1,178,344 shares of company stock valued at $5,865,147 in the last three months. Insiders own 15.70% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Blair William & Co. IL raised its stake in Under Armour by 40.0% during the fourth 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 period. Vident Advisory LLC grew its stake in shares of Under Armour by 13.6% during the 4th quarter. Vident Advisory LLC now owns 12,651 shares of the company's stock valued at $63,000 after buying an additional 1,512 shares during the period. NewEdge Advisors LLC grew its stake in shares of Under Armour by 9.4% during 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 during the period. HUB Investment Partners LLC increased its holdings in shares of Under Armour by 12.9% during the 2nd quarter. HUB Investment Partners LLC now owns 21,810 shares of the company's stock worth $149,000 after buying an additional 2,489 shares during the last quarter. Finally, M&T Bank Corp increased its holdings in shares of 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 last quarter. 34.58% of the stock is currently 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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