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

Zacks Investment Research cut shares of Under Armour (NYSE:UAA) from a hold rating to a sell rating in a report published on Wednesday, December 20th.

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 analysts have also recently commented on UAA. Stifel Nicolaus reiterated a hold rating and issued a $18.00 price target on shares of Under Armour in a research note on Thursday, August 24th. Jefferies Group restated a buy rating and set a $28.00 price objective on shares of Under Armour in a research note on Thursday, September 7th. Vetr cut Under Armour from a hold rating to a sell rating and set a $16.78 price objective on the stock. in a research note on Thursday, September 7th. Sanford C. Bernstein started coverage on Under Armour in a research note on Tuesday, September 12th. They set an underperform rating and a $14.00 price objective on the stock. Finally, Wells Fargo & Co cut Under Armour from a market perform rating to an underperform rating and cut their price objective for the company from $17.00 to $13.00 in a research note on Tuesday, September 19th. Seventeen equities research analysts have rated the stock with a sell rating, nineteen have assigned a hold rating, five have given a buy rating and one has issued a strong buy rating to the company’s stock. The company has an average rating of Hold and an average target price of $17.09.

Shares of Under Armour (NYSE UAA) traded up $0.24 on Wednesday, hitting $15.30. The company’s stock had a trading volume of 4,857,100 shares, compared to its average volume of 5,670,000. The firm has a market capitalization of $6,500.00, a PE ratio of 47.81, a PEG ratio of 4.15 and a beta of 0.04. Under Armour has a 12 month low of $11.40 and a 12 month high of $30.75. 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 (NYSE:UAA) last released its quarterly earnings results on Tuesday, October 31st. The company reported $0.22 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.19 by $0.03. Under Armour had a return on equity of 9.32% and a net margin of 2.94%. The business had revenue of $1.41 billion for the quarter, compared to analysts’ expectations of $1.49 billion. The business’s revenue for the quarter was down 4.5% on a year-over-year basis. analysts predict that Under Armour will post 0.2 EPS for the current year.

Several large investors have recently made changes to their positions in the company. Aldebaran Financial Inc. lifted its holdings in shares of Under Armour by 8.3% in the second quarter. Aldebaran Financial Inc. now owns 27,310 shares of the company’s stock valued at $594,000 after purchasing an additional 2,090 shares in the last quarter. Nationwide Fund Advisors lifted its holdings in shares of Under Armour by 6.8% in the third quarter. Nationwide Fund Advisors now owns 52,432 shares of the company’s stock valued at $864,000 after purchasing an additional 3,338 shares in the last quarter. Van Hulzen Asset Management LLC lifted its holdings in shares of Under Armour by 42.5% in the third quarter. Van Hulzen Asset Management LLC now owns 17,100 shares of the company’s stock valued at $282,000 after purchasing an additional 5,100 shares in the last quarter. IFP Advisors Inc lifted its holdings in shares of Under Armour by 5.6% in the third quarter. IFP Advisors Inc now owns 97,318 shares of the company’s stock valued at $1,604,000 after purchasing an additional 5,148 shares in the last quarter. Finally, D.A. Davidson & CO. purchased a new stake in shares of Under Armour in the second quarter valued at $118,000. Institutional investors own 30.98% of the company’s stock.

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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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