Under Armour (NYSE:UAA) Trading 7.1% Higher - What's Next?

Key Points

• Under Armour shares rose 7.1% on Wednesday, trading as high as $7.07 after closing at $6.61 the prior day. Trading volume was well below average, with 3.73 million shares changing hands versus the 9.81 million daily average.
• Wall Street sentiment remains cautious: the stock has a consensus rating of "Reduce" and an average price target of $5.91. Recent analyst updates included UBS keeping a buy rating but cutting its target to $10, while several firms maintained hold/equal-weight views with targets around $5 to $6.
• The company’s latest earnings met expectations, with EPS of -$0.03 and revenue of $1.17 billion, roughly in line with estimates. Under Armour also saw insider buying, including a major shareholder purchasing 739,521 shares, while institutional investors continue to hold a sizable stake in the stock.

Under Armour, Inc. (NYSE:UAA - Get Free Report) shares were up 7.1% on Wednesday . The stock traded as high as $7.07 and last traded at $7.0810. 3,730,379 shares changed hands during mid-day trading, a decline of 62% from the average daily volume of 9,805,860 shares. The stock had previously closed at $6.61.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on UAA shares. UBS Group restated a "buy" rating and set a $10.00 price objective (down from $11.00) on shares of Under Armour in a report on Thursday, May 14th. The Goldman Sachs Group reiterated a "neutral" rating and set a $6.00 target price on shares of Under Armour in a research report on Wednesday, May 13th. Barclays set a $5.00 price target on Under Armour and gave the company an "equal weight" rating in a report on Wednesday, May 13th. Truist Financial cut their price objective on shares of Under Armour from $8.00 to $5.00 and set a "hold" rating on the stock in a report on Wednesday, May 13th. Finally, Stifel Nicolaus set a $6.00 target price on shares of Under Armour and gave the stock a "hold" rating in a research report on Tuesday, May 12th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, fourteen have issued a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Reduce" and an average price target of $5.91.

Under Armour Trading Up 6.4%

The company has a market capitalization of $3.00 billion, a PE ratio of -6.05, a P/E/G ratio of 2.14 and a beta of 1.67. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.08 and a current ratio of 1.62. The business has a fifty day moving average price of $5.93 and a 200 day moving average price of $6.17.

Under Armour (NYSE:UAA - Get Free Report) last posted its earnings results on Tuesday, May 12th. The company reported ($0.03) earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of ($0.03). The firm had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $1.17 billion. Under Armour had a negative net margin of 9.98% and a positive return on equity of 3.01%. The company's revenue was down .8% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.08) EPS. Under Armour has set its FY 2027 guidance at 0.080-0.120 EPS and its Q1 2027 guidance at 0.000-0.020 EPS. Analysts expect that Under Armour, Inc. will post 0.12 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, major shareholder V Prem Et Al Watsa purchased 739,521 shares of the stock in a transaction that occurred on Wednesday, May 13th. The stock was purchased at an average cost of $4.97 per share, for a total transaction of $3,675,419.37. Following the acquisition, the insider owned 44,179,116 shares in the company, valued at approximately $219,570,206.52. This trade represents a 1.70% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last three months, insiders have acquired 1,178,344 shares of company stock worth $5,865,147. 15.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Under Armour

Several hedge funds and other institutional investors have recently bought and sold shares of UAA. Maven Securities LTD raised its stake in shares of Under Armour by 207.5% in the 3rd quarter. Maven Securities LTD now owns 453,831 shares of the company's stock valued at $2,265,000 after purchasing an additional 306,254 shares in the last quarter. Ovata Capital Management Ltd acquired a new position in Under Armour in the third quarter worth about $6,980,000. Deltroit Asset Management UK LLP acquired a new position in Under Armour in the fourth quarter worth about $9,909,000. Fairfax Financial Holdings Ltd. Can increased its holdings in Under Armour by 564.8% in the fourth quarter. Fairfax Financial Holdings Ltd. Can now owns 41,958,923 shares of the company's stock valued at $208,536,000 after buying an additional 35,647,123 shares during the last quarter. Finally, WINTON GROUP Ltd acquired a new stake in Under Armour during the fourth quarter valued at approximately $1,343,000. 34.58% of the stock is owned by institutional investors and hedge funds.

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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