Under Armour (NYSE:UAA) Shares 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%.

Shares of Under Armour, Inc. (NYSE:UAA - Get Free Report) dropped 4.9% on Friday . The company traded as low as $4.83 and last traded at $4.79. Approximately 7,733,140 shares changed hands during trading, a decline of 41% from the average daily volume of 13,145,557 shares. The stock had previously closed at $5.03.

Analysts Set New Price Targets

UAA has been the topic of a number of research analyst reports. Rothschild & Co Redburn reissued a "neutral" rating and set a $6.00 price objective (down previously from $7.00) on shares of Under Armour in a report on Monday. The Goldman Sachs Group initiated coverage on shares of Under Armour in a report on Wednesday, July 2nd. They issued a "neutral" rating and a $7.00 target price on the stock. UBS Group decreased their target price on shares of Under Armour from $8.00 to $7.50 and set a "buy" rating on the stock in a research report on Monday, August 11th. Citigroup decreased their target price on shares of Under Armour from $6.00 to $5.50 and set a "neutral" rating on the stock in a research report on Monday, August 11th. Finally, Bank of America cut their price target on Under Armour from $8.00 to $6.50 and set a "neutral" rating for the company in a research note on Monday, August 11th. Three investment analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $6.70.

Under Armour Price Performance

The firm's 50 day moving average is $5.87 and its two-hundred day moving average is $6.20. The stock has a market cap of $2.08 billion, a price-to-earnings ratio of 22.09, a P/E/G ratio of 4.10 and a beta of 1.67. The company has a current ratio of 1.53, a quick ratio of 0.93 and a debt-to-equity ratio of 0.21.

Under Armour (NYSE:UAA - Get Free Report) last announced its earnings results on Friday, August 8th. The company reported $0.02 earnings per share for the quarter, missing the consensus estimate 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 during the quarter, compared to analyst estimates of $1.13 billion. During the same period in the previous year, the firm posted $0.01 EPS. The company's revenue for the quarter was down 4.2% compared to the same quarter last year. Under Armour has set its Q2 2026 guidance at 0.010-0.020 EPS. On average, sell-side analysts predict that Under Armour, Inc. will post 0.3 EPS for the current year.

Insider Transactions at Under Armour

In related news, Director Robert John Sweeney acquired 100,000 shares of the company's stock in a transaction dated Thursday, August 21st. The stock was bought at an average price of $4.88 per share, with a total value of $488,000.00. Following the purchase, the director directly owned 133,696 shares in the company, valued at $652,436.48. The trade was a 296.77% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director Dawn N. Fitzpatrick acquired 100,000 shares of the company's stock in a transaction dated Wednesday, August 13th. The shares were bought at an average cost of $4.93 per share, with a total value of $493,000.00. Following the purchase, the director owned 133,696 shares in the company, valued at approximately $659,121.28. The trade was a 296.77% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last ninety days, insiders have bought 202,045 shares of company stock valued at $991,000. Corporate insiders own 15.60% of the company's stock.

Hedge Funds Weigh In On Under Armour

A number of institutional investors and hedge funds have recently bought and sold shares of UAA. Parallel Advisors LLC boosted its holdings in Under Armour by 620.7% in the 2nd quarter. Parallel Advisors LLC now owns 3,892 shares of the company's stock worth $27,000 after acquiring an additional 3,352 shares during the period. Laurel Wealth Advisors LLC boosted its holdings in Under Armour by 583.0% in the 2nd quarter. Laurel Wealth Advisors LLC now owns 4,098 shares of the company's stock worth $28,000 after acquiring an additional 3,498 shares during the period. UMB Bank n.a. boosted its holdings in Under Armour by 133.8% in the 2nd quarter. UMB Bank n.a. now owns 4,203 shares of the company's stock worth $29,000 after acquiring an additional 2,405 shares during the period. Twin Tree Management LP purchased a new position in Under Armour in the 1st quarter worth approximately $44,000. Finally, Neo Ivy Capital Management purchased a new position in shares of Under Armour during the 2nd quarter valued at approximately $44,000. Hedge funds and other institutional investors own 34.58% of the company's stock.

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.