Under Armour (NYSE:UAA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued 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.”
Several other research firms have also recently issued reports on UAA. Sanford C. Bernstein assumed coverage on Under Armour in a research report on Tuesday, September 12th. They issued an “underperform” rating and a $14.00 price objective for the company. Wells Fargo & Company cut Under Armour from a “market perform” rating to an “underperform” rating and cut their price objective for the stock from $17.00 to $13.00 in a research report on Tuesday, September 19th. Vetr cut 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. Jefferies Group reiterated a “buy” rating and issued a $28.00 price objective on shares of Under Armour in a research report on Thursday, September 7th. Finally, 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. Nineteen research analysts have rated the stock with a sell rating, nineteen have issued a hold rating and four have given a buy rating to the stock. The company currently has an average rating of “Hold” and an average price target of $16.92.
Under Armour (NYSE:UAA) last released its quarterly earnings data on Tuesday, October 31st. The company reported $0.22 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.19 by $0.03. The firm had revenue of $1.41 billion during the quarter, compared to analysts’ expectations of $1.49 billion. Under Armour had a return on equity of 9.32% and a net margin of 2.94%. The company’s revenue was down 4.5% compared to the same quarter last year. sell-side analysts expect that Under Armour will post 0.2 EPS for the current fiscal year.
Several institutional investors and hedge funds have recently bought and sold shares of the stock. Baillie Gifford & Co. acquired a new stake in shares of Under Armour during the second quarter valued at $532,573,000. Vanguard Group Inc. acquired a new stake in shares of Under Armour during the second quarter valued at $393,172,000. BlackRock Inc. acquired a new stake in shares of Under Armour during the second quarter valued at $238,861,000. Bamco Inc. NY boosted its stake in shares of Under Armour by 10.8% during the third quarter. Bamco Inc. NY now owns 7,704,996 shares of the company’s stock valued at $126,978,000 after acquiring an additional 750,325 shares during the last quarter. Finally, State Street Corp acquired a new stake in shares of Under Armour during the second quarter valued at $157,325,000. 31.22% of the stock is currently owned by institutional investors and hedge funds.
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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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