Under Armour, Inc. (NYSE:UAA) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Friday.
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, of late, 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 equities analysts have also recently issued reports on UAA. Deutsche Bank AG cut shares of Under Armour from a “hold” rating to a “sell” rating and lowered their target price for the company from $20.27 to $17.00 in a research note on Tuesday, July 25th. Buckingham Research restated an “underperform” rating and set a $15.00 target price on shares of Under Armour in a research note on Thursday, July 27th. Wedbush restated a “neutral” rating and set a $17.00 target price (down previously from $18.00) on shares of Under Armour in a research note on Tuesday, August 8th. Canaccord Genuity restated a “hold” rating and set a $18.00 target price (down previously from $21.00) on shares of Under Armour in a research note on Tuesday, August 8th. Finally, Telsey Advisory Group restated a “market perform” rating and set a $18.00 target price (down previously from $21.00) on shares of Under Armour in a research note on Tuesday, August 8th. Seventeen analysts have rated the stock with a sell rating, twenty-one have given a hold rating and four have issued a buy rating to the company. Under Armour currently has an average rating of “Hold” and a consensus price target of $17.04.
Under Armour (NYSE UAA) traded up $0.35 during trading hours on Friday, hitting $12.76. 5,012,200 shares of the stock were exchanged, compared to its average volume of 5,586,354. The stock has a market cap of $5,430.00, a P/E ratio of 30.27, a PEG ratio of 3.67 and a beta of 0.03. The company has a quick ratio of 1.16, a current ratio of 2.23 and a debt-to-equity ratio of 0.37. Under Armour has a 12-month low of $11.40 and a 12-month high of $33.45.
Under Armour (NYSE:UAA) last released its earnings results on Tuesday, October 31st. The company reported $0.22 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.19 by $0.03. The firm had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.49 billion. Under Armour had a net margin of 2.94% and a return on equity of 9.32%. Under Armour’s quarterly revenue was down 4.5% compared to the same quarter last year. analysts expect that Under Armour will post 0.2 EPS for the current fiscal year.
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Hedge funds have recently modified their holdings of the company. D.A. Davidson & CO. purchased a new stake in shares of Under Armour during the second quarter worth about $118,000. Cornerstone Advisors Inc. purchased a new stake in shares of Under Armour during the second quarter worth about $124,000. Municipal Employees Retirement System of Michigan purchased a new stake in shares of Under Armour during the second quarter worth about $129,000. WFG Advisors LP purchased a new stake in shares of Under Armour during the second quarter worth about $132,000. Finally, Global X Management Co. LLC purchased a new stake in shares of Under Armour during the second quarter worth about $134,000. Institutional investors and hedge funds own 30.35% of the company’s stock.
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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