Under Armour (UAA) Downgraded to “Sell” at Zacks Investment Research

Under Armour (NYSE:UAA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Wednesday.

According to Zacks, “Shares of Under Armour have declined and underperformed the industry in a year. Also, the company has been facing issues such as sluggishness in North America business, deteriorating gross margin and higher interest expenses. For 2018, management anticipates revenues to increase by low single-digit percentage rate. In fourth-quarter 2017, the company’s earning missed the consensus mark. However, the big take away from this quarter was better-than-expected top-line performance. Meanwhile, Under Armour’s sustained focus on brand development, expansion of direct-to-consumer and technology-based fitness business bode well. It has also undertaken restructuring efforts since 2017 and projects savings of at least $75 million annually in 2019 and thereafter. Furthermore, Under Armour continues to seek opportunities for increasing global footprint and market share, besides rolling out e-commerce platforms.”

UAA has been the subject of several other reports. Vetr cut Under Armour from a “sell” rating to a “strong sell” rating and set a $12.00 target price for the company. in a research report on Monday, December 11th. Citigroup reduced their target price on Under Armour from $16.00 to $15.00 and set a “neutral” rating for the company in a research report on Monday, February 5th. UBS Group cut Under Armour to a “neutral” rating in a research report on Tuesday, January 9th. Deutsche Bank reduced their target price on Under Armour from $16.00 to $14.00 and set a “sell” rating for the company in a research report on Thursday, October 26th. Finally, Piper Jaffray Companies reduced their target price on Under Armour to $11.00 and set a “neutral” rating for the company in a research report on Tuesday, October 31st. Nineteen analysts have rated the stock with a sell rating, fifteen have given a hold rating and four have issued a buy rating to the stock. The company currently has an average rating of “Hold” and a consensus price target of $14.71.

Under Armour (NYSE UAA) traded up $1.07 during trading hours on Wednesday, hitting $17.77. The company had a trading volume of 11,750,717 shares, compared to its average volume of 7,617,064. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.16 and a current ratio of 2.23. Under Armour has a 12 month low of $11.40 and a 12 month high of $23.46. The company has a market cap of $7,470.00, a price-to-earnings ratio of -160.45, a price-to-earnings-growth ratio of 4.35 and a beta of -0.04.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in UAA. BlackRock Inc. raised its position in shares of Under Armour by 1.3% in the 4th quarter. BlackRock Inc. now owns 11,568,717 shares of the company’s stock worth $166,937,000 after acquiring an additional 147,753 shares in the last quarter. Bamco Inc. NY increased its position in Under Armour by 10.8% during the 3rd quarter. Bamco Inc. NY now owns 7,704,996 shares of the company’s stock valued at $126,978,000 after buying an additional 750,325 shares in the last quarter. State Street Corp bought a new position in Under Armour during the 2nd quarter valued at approximately $157,325,000. Hexavest Inc. bought a new position in Under Armour during the 4th quarter valued at approximately $39,368,000. Finally, Disciplined Growth Investors Inc. MN bought a new position in Under Armour during the 3rd quarter valued at approximately $39,964,000. 31.93% of the stock is 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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