Wall Street Zen Upgrades Under Armour (NYSE:UAA) to Hold

Key Points

• Under Armour has been upgraded from a "sell" to a "hold" rating by analysts at Wall Street Zen, indicating a more cautious outlook on the stock.
• Wells Fargo increased their price target for Under Armour from $4.00 to $5.00, while BMO Capital Markets and Robert W. Baird lowered their targets to $9.00 and $6.00, respectively.
• Under Armour's shares opened at $5.18 and have a consensus rating of "Hold" with an average target price of $6.74 among analysts.

Wall Street Zen upgraded shares of Under Armour (NYSE:UAA - Free Report) from a sell rating to a hold rating in a research note released on Saturday morning.

A number of other research firms have also weighed in on UAA. Stifel Nicolaus reduced their price objective on Under Armour from $11.00 to $10.00 and set a "buy" rating for the company in a research report on Wednesday, May 14th. BMO Capital Markets decreased their target price on Under Armour from $12.00 to $9.00 and set an "outperform" rating on the stock in a report on Wednesday, May 14th. JPMorgan Chase & Co. reduced their target price on Under Armour from $6.00 to $5.00 and set an "underweight" rating on the stock in a report on Friday, August 8th. Truist Financial dropped their price target on Under Armour from $9.00 to $7.00 and set a "hold" rating for the company in a research report on Wednesday, May 14th. Finally, Telsey Advisory Group lowered their price target on Under Armour from $7.00 to $5.00 and set a "market perform" rating for the company in a report on Monday, August 11th. Three equities research analysts have rated the stock with a sell rating, fifteen have issued a hold rating and three have given a buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $6.74.

Under Armour Stock Performance

NYSE UAA traded up $0.26 on Friday, reaching $5.18. The stock had a trading volume of 30,513,277 shares, compared to its average volume of 15,465,376. 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 fifty day moving average of $6.65 and a two-hundred day moving average of $6.55. Under Armour has a 1-year low of $4.78 and a 1-year high of $11.89. The company has a market cap of $2.22 billion, a P/E ratio of 23.55, a price-to-earnings-growth ratio of 2.41 and a beta of 1.61.

Under Armour (NYSE:UAA - Get Free Report) last announced its quarterly earnings data on Friday, August 8th. The company reported $0.02 EPS for the quarter, missing analysts' consensus estimates of $0.03 by ($0.01). The firm had revenue of $1.13 billion during the quarter, compared to analyst estimates of $1.13 billion. Under Armour had a net margin of 1.99% and a return on equity of 7.24%. The company's revenue was down 4.2% on a year-over-year basis. During the same period last year, the business posted $0.01 EPS. On average, equities research analysts anticipate that Under Armour will post 0.3 EPS for the current year.

Insiders Place Their Bets

In other news, insider Mehri Shadman sold 16,287 shares of the stock in a transaction dated Tuesday, June 3rd. The shares were sold at an average price of $6.14, for a total value of $100,002.18. Following the transaction, the insider directly owned 191,796 shares of the company's stock, valued at $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 can be accessed through this link. Also, Director Dawn N. Fitzpatrick acquired 100,000 shares of Under Armour stock in a transaction on Wednesday, August 13th. The shares were purchased at an average price of $4.93 per share, for a total transaction of $493,000.00. Following the completion of the purchase, the director directly owned 133,696 shares of the company's stock, valued at approximately $659,121.28. This represents a 296.77% increase in their ownership of the stock. The disclosure for this purchase can be found here. 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. Alyeska Investment Group L.P. raised its holdings in Under Armour by 55.7% in the fourth quarter. Alyeska Investment Group L.P. now owns 9,789,553 shares of the company's stock worth $81,057,000 after purchasing an additional 3,503,006 shares in the last quarter. Fuller & Thaler Asset Management Inc. grew its stake in shares of Under Armour by 17.5% in the first quarter. Fuller & Thaler Asset Management Inc. now owns 6,494,339 shares of the company's stock worth $40,590,000 after acquiring an additional 965,404 shares during the last quarter. American Century Companies Inc. boosted its position in shares of Under Armour by 9.2% during the second quarter. American Century Companies Inc. now owns 5,970,726 shares of the company's stock valued at $40,780,000 after buying an additional 504,912 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its position in shares of Under Armour by 4.8% during the first quarter. Charles Schwab Investment Management Inc. now owns 5,047,630 shares of the company's stock valued at $31,548,000 after buying an additional 231,990 shares during the last quarter. Finally, T. Rowe Price Investment Management Inc. boosted its position in shares of Under Armour by 17.2% during the first quarter. T. Rowe Price Investment Management Inc. now owns 3,997,850 shares of the company's stock valued at $24,987,000 after buying an additional 586,183 shares during the last quarter. 34.58% of the stock is currently owned by institutional investors.

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.