Under Armour (NYSE:UAA) Trading Down 4.9% - Here's Why

Key Points

• Under Armour's share price declined by 4.9% to $4.79, significantly down from the previous close of $5.03, with trading volume dropping by 41% compared to the average.
• Research firms have changed their ratings for Under Armour, with UBS lowering the price target to $7.50 and Robert W. Baird cutting it to $6.00, while the average target price now stands at $6.74.
• Insider transactions indicate confidence as Director Dawn N. Fitzpatrick purchased 100,000 shares at $4.93, increasing her position by 296.77%.

Under Armour, Inc. (NYSE:UAA - Get Free Report)'s share price fell 4.9% during trading on Friday . The company traded as low as $4.83 and last traded at $4.79. 7,733,140 shares were traded during trading, a decline of 41% from the average session volume of 13,145,557 shares. The stock had previously closed at $5.03.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on UAA. UBS Group dropped their price target on Under Armour from $8.00 to $7.50 and set a "buy" rating for the company in a research report on Monday, August 11th. Robert W. Baird lowered their price objective on Under Armour from $7.00 to $6.00 and set a "neutral" rating for the company in a research report on Monday, August 11th. Cfra Research upgraded Under Armour from a "moderate sell" rating to a "hold" rating in a report on Tuesday, August 12th. The Goldman Sachs Group started coverage on Under Armour in a report on Wednesday, July 2nd. They issued a "neutral" rating and a $7.00 price objective on the stock. Finally, Citigroup reduced their price objective on Under Armour from $6.00 to $5.50 and set a "neutral" rating on the stock in a research note on Monday, August 11th. Three research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $6.74.

Under Armour Price Performance

The stock has a 50-day moving average price of $6.00 and a 200 day moving average price of $6.25. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.53 and a quick ratio of 0.93. The firm has a market cap of $2.08 billion, a price-to-earnings ratio of 22.07, a PEG ratio of 4.20 and a beta of 1.67.

Under Armour (NYSE:UAA - Get Free Report) last posted its 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 return on equity of 7.24% and a net margin of 1.99%.The firm had revenue of $1.13 billion for the quarter, compared to analyst estimates of $1.13 billion. During the same quarter last year, the firm posted $0.01 EPS. The firm's revenue for the quarter was down 4.2% on a year-over-year basis. Under Armour has set its Q2 2026 guidance at 0.010-0.020 EPS. As a group, equities research analysts forecast that Under Armour, Inc. will post 0.3 earnings per share for the current fiscal year.

Insider Transactions at Under Armour

In related news, Director Dawn N. Fitzpatrick purchased 100,000 shares of the stock in a transaction that occurred on Wednesday, August 13th. The shares were purchased at an average price of $4.93 per share, with a total value of $493,000.00. Following the completion of the acquisition, the director directly owned 133,696 shares in the company, valued at $659,121.28. This represents a 296.77% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Robert John Sweeney acquired 100,000 shares of the stock in a transaction on Thursday, August 21st. The stock was acquired at an average cost of $4.88 per share, for a total transaction of $488,000.00. Following the acquisition, the director directly owned 133,696 shares in the company, valued at $652,436.48. This represents a 296.77% increase in their position. The disclosure for this purchase can be found here. In the last three months, insiders have purchased 202,045 shares of company stock worth $991,000. Corporate insiders own 15.60% of the company's stock.

Institutional Investors Weigh In On Under Armour

Hedge funds and other institutional investors have recently modified their holdings of the stock. Northern Trust Corp raised its position in shares of Under Armour by 18.9% during the 4th quarter. Northern Trust Corp now owns 1,729,796 shares of the company's stock worth $14,323,000 after purchasing an additional 275,131 shares during the last quarter. T. Rowe Price Investment Management Inc. raised its holdings in Under Armour by 17.2% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 3,997,850 shares of the company's stock valued at $24,987,000 after acquiring an additional 586,183 shares during the last quarter. American Century Companies Inc. raised its holdings in Under Armour by 36.2% in the 1st quarter. American Century Companies Inc. now owns 5,465,814 shares of the company's stock valued at $34,161,000 after acquiring an additional 1,452,143 shares during the last quarter. GDS Wealth Management purchased a new stake in shares of Under Armour during the 1st quarter valued at $315,000. Finally, ABC Arbitrage SA purchased a new stake in shares of Under Armour during the 1st quarter valued at $3,233,000. 34.58% of the stock is currently owned by institutional investors and hedge funds.

About Under Armour

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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