Wall Street Zen Downgrades Under Armour (NYSE:UAA) to Sell

Key Points

• Wall Street Zen has downgraded Under Armour from a "hold" rating to a "sell" rating, indicating a pessimistic outlook for the company's stock performance.
• Analysts have issued varied ratings on Under Armour, with three buy ratings, sixteen hold ratings, and three sell ratings, resulting in a consensus price target of $6.70.
• Insider directors have significantly increased their holdings in Under Armour, purchasing shares valued at nearly $1 million, suggesting potential confidence in the company's future.

Under Armour (NYSE:UAA - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Friday.

Other research analysts have also issued reports about the company. Rothschild & Co Redburn reiterated a "neutral" rating and set a $6.00 price target (down from $7.00) on shares of Under Armour in a report on Monday, September 15th. JPMorgan Chase & Co. dropped their target price on shares of Under Armour from $6.00 to $5.00 and set an "underweight" rating on the stock in a research report on Friday, August 8th. Cfra Research upgraded shares of Under Armour from a "moderate sell" rating to a "hold" rating in a research report on Tuesday, August 12th. UBS Group dropped their price objective on shares of Under Armour from $8.00 to $7.50 and set a "buy" rating on the stock in a report on Monday, August 11th. Finally, Robert W. Baird decreased their target price on Under Armour from $7.00 to $6.00 and set a "neutral" rating on the stock in a research report on Monday, August 11th. Three investment analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $6.70.

Under Armour Price Performance

NYSE UAA opened at $4.97 on Friday. Under Armour has a 1 year low of $4.72 and a 1 year high of $11.89. The company has a fifty day simple moving average of $5.55 and a 200 day simple moving average of $6.09. The company has a current ratio of 1.53, a quick ratio of 0.93 and a debt-to-equity ratio of 0.21. The company has a market cap of $2.13 billion, a P/E ratio of 22.59, a P/E/G ratio of 4.01 and a beta of 1.67.

Under Armour (NYSE:UAA - Get Free Report) last released its earnings results on Friday, August 8th. The company reported $0.02 earnings per share for the quarter, missing analysts' consensus estimates of $0.03 by ($0.01). The firm 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%.The firm's revenue was down 4.2% on a year-over-year basis. During the same period in the prior year, the firm earned $0.01 EPS. Under Armour has set its Q2 2026 guidance at 0.010-0.020 EPS. On average, sell-side analysts predict that Under Armour will post 0.3 EPS for the current year.

Insider Buying and Selling at Under Armour

In other news, Director Robert John Sweeney bought 100,000 shares of the stock in a transaction dated Thursday, August 21st. The shares were acquired at an average price of $4.88 per share, with a total value of $488,000.00. Following the acquisition, the director owned 133,696 shares in the company, valued at $652,436.48. This trade represents a 296.77% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Dawn N. Fitzpatrick bought 100,000 shares of the company's 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 transaction, the director directly owned 133,696 shares in the company, valued at $659,121.28. This represents 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 purchased 202,045 shares of company stock worth $991,000. 15.60% of the stock is owned by insiders.

Institutional Trading of Under Armour

Hedge funds have recently modified their holdings of the company. Parallel Advisors LLC grew its position in Under Armour by 620.7% during 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 last quarter. Laurel Wealth Advisors LLC grew its holdings 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 last quarter. UMB Bank n.a. increased its stake in shares of Under Armour by 133.8% in the second quarter. UMB Bank n.a. now owns 4,203 shares of the company's stock valued at $29,000 after buying an additional 2,405 shares in the last quarter. State of Wyoming bought a new position in shares of Under Armour in the second quarter valued at about $44,000. Finally, Neo Ivy Capital Management bought a new stake in Under Armour during the 2nd quarter worth about $44,000. Institutional investors and hedge funds 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.

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