Under Armour, Inc. (NYSE:UAA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Wednesday.
According to Zacks, “Shares of Under Armour have not only witnessed a sharp decline in a year but have also underperformed the industry by a wide margin. The stock is unlikely to recover in the near term as investors’ sentiments were further hurt by the company’s conservative sales guidance for the full year. The company expects net revenues for 2017 to rise in the range of 9-11%, down from the prior estimate of an increase of 11-12% over the 2016 level primarily due to moderation in North American business. Further, it anticipates adjusted gross margin to decline by a minimum of 120 basis points in 2017 due to foreign currency headwinds, restructuring plan and efforts toward managing inventory. We also observe that, of late, earnings estimates for the company have witnessed downward revisions. Nevertheless, the company’s sustained focus on brand development, expansion of direct-to-consumer and technology-based fitness business bode well.”
A number of other equities analysts have also recently commented on the company. Vetr raised Under Armour from a “hold” rating to a “buy” rating and set a $22.36 target price for the company in a report on Monday, July 10th. Jefferies Group LLC reissued a “buy” rating and set a $28.00 target price on shares of Under Armour in a report on Thursday, September 7th. OTR Global reissued a “negative” rating on shares of Under Armour in a report on Tuesday, July 18th. Raymond James Financial, Inc. reissued an “underperform” rating on shares of Under Armour in a report on Friday, July 7th. Finally, Wells Fargo & Company reissued a “market perform” rating and set a $17.00 target price on shares of Under Armour in a report on Wednesday, August 2nd. Fourteen research analysts have rated the stock with a sell rating, twenty-two have issued a hold rating and five have assigned a buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus price target of $19.77.
Under Armour (NYSE UAA) traded down 1.78% during mid-day trading on Wednesday, hitting $16.54. The company had a trading volume of 2,600,930 shares. Under Armour has a 12 month low of $15.92 and a 12 month high of $39.20. The company has a 50-day moving average price of $16.87 and a 200 day moving average price of $19.25. The firm has a market capitalization of $7.29 billion, a P/E ratio of 33.48 and a beta of -0.02.
Under Armour (NYSE:UAA) last released its quarterly earnings results on Tuesday, August 1st. The company reported ($0.03) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.06) by $0.03. The company had revenue of $1.09 billion during the quarter, compared to analysts’ expectations of $1.08 billion. Under Armour had a return on equity of 10.93% and a net margin of 4.38%. The business’s revenue was up 8.7% compared to the same quarter last year. Equities analysts forecast that Under Armour will post $0.37 EPS for the current fiscal year.
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Several hedge funds and other institutional investors have recently added to or reduced their stakes in UAA. Baillie Gifford & Co. purchased a new position in shares of Under Armour during the second quarter worth about $532,573,000. Vanguard Group Inc. purchased a new position in shares of Under Armour during the second quarter worth about $393,172,000. BlackRock Inc. purchased a new position in shares of Under Armour during the second quarter worth about $238,861,000. State Street Corp purchased a new position in shares of Under Armour during the second quarter worth about $157,325,000. Finally, Bamco Inc. NY purchased a new position in shares of Under Armour during the second quarter worth about $151,334,000. 30.47% of the stock is currently owned by hedge funds and other institutional investors.
About Under Armour
Under Armour, Inc is engaged in the development, marketing and distribution of branded performance apparel, footwear and accessories for men, women and youth. The Company’s segments include North America, consisting of the United States and Canada; Europe, the Middle East and Africa (EMEA); Asia-Pacific; Latin America, and Connected Fitness.
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