Under Armour (NYSE:UAA) Trading Down 4.6% After Earnings Miss

Key Points

• Under Armour's stock fell 4.6% following disappointing earnings, reporting $0.02 earnings per share which was $0.01 below analysts' estimates.
• The company's revenue for the quarter was $1.13 billion, matching analyst expectations but down 4.2% compared to the same quarter last year.
• Several analysts have revised their price targets for Under Armour, with the average target now set at $6.74, reflecting a consensus "Hold" rating.

Under Armour, Inc. (NYSE:UAA - Get Free Report) was down 4.6% during mid-day trading on Monday after the company announced weaker than expected quarterly earnings. The company traded as low as $5.26 and last traded at $5.19. Approximately 3,963,081 shares traded hands during trading, a decline of 69% from the average daily volume of 12,782,701 shares. The stock had previously closed at $5.44.

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 for the quarter, compared to analyst estimates of $1.13 billion. Under Armour had a return on equity of 7.24% and a net margin of 1.99%. Under Armour's quarterly revenue was down 4.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.01 EPS.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on UAA shares. Citigroup lowered their price target on Under Armour from $6.00 to $5.50 and set a "neutral" rating for the company in a research note on Monday. UBS Group reduced their target price on Under Armour from $8.00 to $7.50 and set a "buy" rating for the company in a report on Monday. JPMorgan Chase & Co. cut their price target on Under Armour from $6.00 to $5.00 and set an "underweight" rating for the company in a report on Friday, August 8th. Bank of America cut their target price on Under Armour from $8.00 to $6.50 and set a "neutral" rating for the company in a research note on Monday. Finally, Barclays cut 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. Four investment analysts have rated the stock with a sell rating, thirteen have given a hold rating and three have given a buy rating to the company's stock. According to MarketBeat, Under Armour has an average rating of "Hold" and a consensus price target of $6.74.

Insider Buying and Selling at Under Armour

In other news, insider Mehri Shadman sold 16,287 shares of the stock in a transaction on Tuesday, June 3rd. The stock was sold at an average price of $6.14, for a total transaction of $100,002.18. Following the sale, the insider owned 191,796 shares in the company, valued at approximately $1,177,627.44. This represents a 7.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Dawn N. Fitzpatrick purchased 100,000 shares of the business's stock in a transaction dated Wednesday, August 13th. The shares were purchased at an average cost of $4.93 per share, for a total transaction of $493,000.00. Following the purchase, the director directly owned 133,696 shares of the company's stock, valued at $659,121.28. This trade represents a 296.77% increase in their ownership of the stock. The disclosure for this purchase can be found here. 15.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Under Armour

Hedge funds have recently added to or reduced their stakes in the stock. Parallel Advisors LLC raised its position in shares of Under Armour by 620.7% during the second quarter. Parallel Advisors LLC now owns 3,892 shares of the company's stock worth $27,000 after purchasing an additional 3,352 shares during the period. Laurel Wealth Advisors LLC raised its position in shares of Under Armour by 583.0% during the second quarter. Laurel Wealth Advisors LLC now owns 4,098 shares of the company's stock worth $28,000 after purchasing an additional 3,498 shares during the period. UMB Bank n.a. raised its position in shares of Under Armour by 133.8% during the second quarter. UMB Bank n.a. now owns 4,203 shares of the company's stock worth $29,000 after purchasing an additional 2,405 shares during the period. Neo Ivy Capital Management bought a new position in shares of Under Armour during the second quarter worth about $44,000. Finally, GAMMA Investing LLC grew its holdings in shares of Under Armour by 163.3% during the second quarter. GAMMA Investing LLC now owns 7,013 shares of the company's stock worth $48,000 after buying an additional 4,350 shares in the last quarter. Institutional investors and hedge funds own 34.58% of the company's stock.

Under Armour Stock Performance

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 capitalization of $2.12 billion, a P/E ratio of 22.39, a P/E/G ratio of 2.36 and a beta of 1.61. The stock has a fifty day moving average of $6.68 and a 200-day moving average of $6.60.

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.