Under Armour (NYSE:UAA) Trading Down 4.6% Following Weak Earnings

Shares of Under Armour, Inc. (NYSE:UAA) were down 4.6% on Monday following a weaker than expected earnings announcement. The company traded as low as $5.26 and last traded at $5.19. Approximately 3,963,081 shares were traded 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 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 analysts’ expectations of $1.13 billion. Under Armour had a net margin of 1.99% and a return on equity of 7.24%. The business’s revenue was down 4.2% on a year-over-year basis. During the same period in the previous year, the business posted $0.01 earnings per share.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on UAA. JPMorgan Chase & Co. decreased their target price on Under Armour from $6.00 to $5.00 and set an “underweight” rating on the stock in a research report on Friday, August 8th. Telsey Advisory Group reduced their price objective on Under Armour from $7.00 to $5.00 and set a “market perform” rating on the stock in a research note on Monday. Wells Fargo & Company upped their price objective on Under Armour from $4.00 to $5.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 14th. Stifel Nicolaus cut their target price on shares of Under Armour from $11.00 to $10.00 and set a “buy” rating for the company in a report on Wednesday, May 14th. Finally, Bank of America reduced their price target on shares of Under Armour from $8.00 to $6.50 and set a “neutral” rating on the stock in a research report on Monday. Four research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and three have assigned a buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $6.74.

Insider Activity

In related news, insider Mehri Shadman sold 16,287 shares of Under Armour stock in a transaction dated Tuesday, June 3rd. The shares were sold at an average price of $6.14, for a total transaction of $100,002.18. Following the completion of the transaction, the insider directly owned 191,796 shares of the company’s stock, valued at approximately $1,177,627.44. The trade was a 7.83% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 15.60% of the company’s stock.

Institutional Trading of Under Armour

Several institutional investors have recently added to or reduced their stakes in UAA. Parallel Advisors LLC grew its stake 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 valued at $27,000 after buying an additional 3,352 shares during the last quarter. Laurel Wealth Advisors LLC lifted its stake in shares of Under Armour by 583.0% during 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 last quarter. UMB Bank n.a. boosted its holdings in Under Armour by 133.8% during the 2nd quarter. UMB Bank n.a. now owns 4,203 shares of the company’s stock valued at $29,000 after acquiring an additional 2,405 shares during the period. Twin Tree Management LP bought a new position in Under Armour in the 1st quarter valued at $44,000. Finally, Neo Ivy Capital Management bought a new position in Under Armour in the 2nd quarter valued at $44,000. Institutional investors own 34.58% of the company’s stock.

Under Armour Stock Performance

The firm has a market capitalization of $2.16 billion, a P/E ratio of 22.82, a P/E/G ratio of 0.77 and a beta of 1.61. 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 50-day moving average price of $6.75 and a two-hundred day moving average price of $6.63.

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.