Under Armour, Inc. (NYSE:UAA) Cut to Sell at Zacks Investment Research
Under Armour, Inc. (NYSE:UAA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Friday.
According to Zacks, “Under Armour’s better-than-expected results in second-quarter 2017 failed to cushion the stock, which has witnessed a sharp decline in the past one year and underperformed the industry by a wide range. Investors’ sentiments were further dampened by the company’s conservative sales guidance for the full year. The company now expects net revenue 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. Nevertheless, the company’s sustained focus on brand development, expansion of direct-to-consumer and technology-based fitness business bode well.”
UAA has been the subject of several other reports. FBR & Co restated an “underperform” rating and issued a $14.00 target price on shares of Under Armour in a report on Friday, April 14th. Vetr upgraded Under Armour from a “buy” rating to a “strong-buy” rating and set a $22.90 target price for the company in a report on Monday, May 15th. Deutsche Bank AG lowered Under Armour from a “hold” rating to a “sell” rating and reduced their target price for the stock from $20.27 to $17.00 in a report on Tuesday, July 25th. Credit Suisse Group restated an “underperform” rating and issued a $17.00 target price on shares of Under Armour in a report on Monday, April 24th. Finally, Oppenheimer Holdings, Inc. restated a “market perform” rating on shares of Under Armour in a report on Tuesday, April 25th. Thirteen equities research analysts have rated the stock with a sell rating, twenty-two have issued a hold rating and six have assigned a buy rating to the stock. Under Armour has an average rating of “Hold” and a consensus target price of $23.32.
Shares of Under Armour (UAA) traded up 1.010% during mid-day trading on Friday, reaching $18.495. 800,061 shares of the company’s stock traded hands. The firm has a 50-day moving average price of $20.76 and a 200-day moving average price of $21.02. Under Armour has a 1-year low of $18.01 and a 1-year high of $43.85. The company has a market capitalization of $8.15 billion, a P/E ratio of 37.439 and a beta of -0.07.
Under Armour (NYSE:UAA) last posted its earnings results on Tuesday, August 1st. The company reported ($0.03) earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.06) by $0.03. Under Armour had a return on equity of 10.93% and a net margin of 4.38%. The firm had revenue of $1.09 billion during the quarter, compared to analyst estimates of $1.08 billion. The firm’s revenue for the quarter was up 8.7% on a year-over-year basis. On average, equities research analysts forecast that Under Armour will post $0.38 earnings per share for the current fiscal year.
In related news, insider Kerry D. Chandler sold 5,921 shares of the stock in a transaction that occurred on Tuesday, May 9th. The stock was sold at an average price of $21.38, for a total transaction of $126,590.98. Following the completion of the transaction, the insider now directly owns 12,803 shares of the company’s stock, valued at $273,728.14. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director William R. Mcdermott sold 4,799 shares of the stock in a transaction that occurred on Tuesday, May 9th. The shares were sold at an average price of $21.40, for a total value of $102,698.60. Following the transaction, the director now directly owns 59,657 shares of the company’s stock, valued at $1,276,659.80. The disclosure for this sale can be found here. Insiders have sold 15,519 shares of company stock valued at $331,652 over the last three months. Insiders own 16.40% of the company’s stock.
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Nepsis Capital Management Inc. bought a new position in shares of Under Armour during the second quarter valued at approximately $3,079,000. Gateway Investment Advisers LLC acquired a new stake in Under Armour during the second quarter worth about $12,957,000. Fulton Bank N.A. acquired a new stake in Under Armour during the second quarter worth about $307,000. Covenant Asset Management LLC acquired a new stake in Under Armour during the second quarter worth about $809,000. Finally, City Holding Co. acquired a new stake in Under Armour during the second quarter worth about $532,000. 29.43% of the stock is 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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