Under Armour, Inc. (UAA) Rating Lowered 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 issued 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 brokerages also recently weighed in on UAA. Morgan Stanley cut their price target on shares of Under Armour from $20.00 to $19.00 and set an “equal weight” rating on the stock in a research report on Monday, August 7th. Wedbush reiterated a “neutral” rating and issued a $17.00 price target (down from $18.00) on shares of Under Armour in a research report on Tuesday, August 8th. Vetr downgraded shares of Under Armour from a “sell” rating to a “strong sell” rating and set a $16.68 price target on the stock. in a research report on Wednesday, August 9th. Nomura cut their price target on shares of Under Armour from $15.00 to $13.00 and set a “reduce” rating on the stock in a research report on Wednesday, August 2nd. Finally, Credit Suisse Group reiterated an “underperform” rating and issued a $17.00 price target on shares of Under Armour in a research report on Friday, June 16th. Fourteen equities research analysts have rated the stock with a sell rating, twenty-two have assigned a hold rating and five have assigned a buy rating to the company. The stock presently has a consensus rating of “Hold” and a consensus target price of $19.77.
Under Armour (NYSE UAA) traded down 1.930% during mid-day trading on Wednesday, hitting $16.515. 2,570,113 shares of the company were exchanged. 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 of $16.87 and a 200 day moving average of $19.25. The stock has a market cap of $7.28 billion, a P/E ratio of 33.431 and a beta of -0.02.
Under Armour (NYSE:UAA) last announced its quarterly earnings results on Tuesday, August 1st. The company reported ($0.03) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.06) by $0.03. The business had revenue of $1.09 billion for the quarter, compared to the consensus estimate of $1.08 billion. Under Armour had a net margin of 4.38% and a return on equity of 10.93%. The firm’s quarterly revenue was up 8.7% compared to the same quarter last year. On average, equities research analysts expect that Under Armour will post $0.37 earnings per share for the current fiscal year.
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Large investors have recently added to or reduced their stakes in the stock. Aviva PLC bought a new position in shares of Under Armour in the second quarter valued at $2,486,000. State of Tennessee Treasury Department acquired a new stake in Under Armour during the 2nd quarter valued at $4,363,000. Chilton Investment Co. LLC acquired a new stake in Under Armour during the 2nd quarter valued at $18,697,000. Schwab Charles Investment Management Inc. acquired a new stake in Under Armour during the 2nd quarter valued at $15,325,000. Finally, BKS Advisors LLC acquired a new stake in Under Armour during the 2nd quarter valued at $1,224,000. 30.47% of the stock is owned by institutional investors and hedge funds.
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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