Under Armour (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 seen a steep decline in a year but have also underperformed the industry by a wide margin. Despite reporting an earnings beat in the third quarter, the stock failed to recover as investors’ sentiments were hurt by a conservative sales guidance for 2017. Moreover, the decline in sales in North America has been a major concern for investors in the past few quarters. It now expects net revenues in 2017 to rise low-single digits, down from the earlier estimate of an increase of 9-11% over the 2016 level. We also observe that earnings estimates have witnessed downward revisions. Nevertheless, sustained focus on brand development, expansion of direct-to-consumer and technology-based fitness business bode well. Earlier, management announced a restructuring plan in order to utilize financial resources more efficiently. This will better cater to the evolving demands of the changing consumer environment.”
UAA has been the subject of a number of other research reports. Vetr downgraded shares of Under Armour from a “hold” rating to a “sell” rating and set a $16.78 price objective for the company. in a research report on Thursday, September 7th. Stifel Nicolaus reiterated a “hold” rating and issued a $18.00 price objective on shares of Under Armour in a research report on Thursday, August 24th. Deutsche Bank decreased their price objective on shares of Under Armour from $16.00 to $14.00 and set a “sell” rating for the company in a research report on Thursday, October 26th. Piper Jaffray Companies decreased their price objective on shares of Under Armour to $11.00 and set a “neutral” rating for the company in a research report on Tuesday, October 31st. Finally, Credit Suisse Group upped their price objective on shares of Under Armour from $12.02 to $12.25 and gave the stock a “neutral” rating in a research report on Tuesday, November 7th. Nineteen research analysts have rated the stock with a sell rating, eighteen have given a hold rating and five have assigned a buy rating to the company’s stock. Under Armour currently has a consensus rating of “Hold” and a consensus target price of $16.92.
Under Armour (NYSE:UAA) last issued its quarterly earnings data on Tuesday, October 31st. The company reported $0.22 earnings per share for the quarter, topping analysts’ consensus estimates of $0.19 by $0.03. The business had revenue of $1.41 billion during the quarter, compared to the consensus estimate of $1.49 billion. Under Armour had a net margin of 2.94% and a return on equity of 9.32%. The company’s revenue for the quarter was down 4.5% on a year-over-year basis. sell-side analysts expect that Under Armour will post 0.2 EPS for the current year.
Hedge funds have recently added to or reduced their stakes in the business. D.A. Davidson & CO. acquired a new stake in Under Armour in the 2nd quarter valued at about $118,000. Municipal Employees Retirement System of Michigan acquired a new stake in Under Armour in the 2nd quarter valued at about $129,000. WFG Advisors LP acquired a new stake in Under Armour in the 2nd quarter valued at about $132,000. Global X Management Co. LLC acquired a new stake in Under Armour in the 2nd quarter valued at about $134,000. Finally, Armor Investment Advisors LLC acquired a new stake in Under Armour in the 2nd quarter valued at about $134,000. Institutional investors own 30.98% of the company’s stock.
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Under Armour Company Profile
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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