Under Armour, Inc. (NYSE:UAA) was downgraded by analysts at Deutsche Bank AG from a “hold” rating to a “sell” rating in a report released on Tuesday, July 25th, Marketbeat.com reports. They currently have a $17.00 price objective on the stock, down from their prior price objective of $20.27. Deutsche Bank AG’s price target indicates a potential downside of 0.70% from the company’s previous close.
The analysts wrote, “lifestyle athletic wear” as opposed to Under Armour’s “performance based style.”Increased competition in the athletic space.Heightened promotional activity across the entire sector.A slowdown in Under Armour’s direct-to-consumer segment.Also, Hibbett Sports, Inc. (NASDAQ: HIBB), an athletic specialty retailer that accounts for 16.5 percent of Under Armour’s total sales, said on Monday it expects second-quarter comps to be down 10 percent, the analyst added. This should be even more concerning for Under Armour’s investors as the Street was modeling Hibbett Sports’ stores to see just a 2-percent decline in comps and is a “reflection of the challenges the sector currently faces.”Long-Term Story QuestionableFor Under Armour’s stock to return, the company needs to return to a consistent double-digit growth rate. However, there are few drivers to support this outlook, the analyst also argued. Meanwhile, the company has “fumbled”
A number of other equities analysts have also commented on the stock. Vetr raised shares of Under Armour from a “hold” rating to a “buy” rating and set a $22.36 target price on the stock in a research report on Monday, July 10th. Credit Suisse Group reaffirmed an “underperform” rating and set a $17.00 target price on shares of Under Armour in a research report on Monday, April 24th. Zacks Investment Research raised shares of Under Armour from a “hold” rating to a “buy” rating and set a $24.00 price objective on the stock in a report on Tuesday, July 4th. FBR & Co cut their price objective on shares of Under Armour from $41.00 to $39.00 and set a “neutral” rating on the stock in a report on Monday, April 17th. Finally, Piper Jaffray Companies reissued a “neutral” rating and set a $17.00 price objective on shares of Under Armour in a report on Tuesday, April 11th. Twelve investment analysts have rated the stock with a sell rating, twenty-three have assigned a hold rating and six have issued a buy rating to the company. The stock currently has an average rating of “Hold” and a consensus price target of $23.29.
Under Armour (NYSE UAA) traded down 3.87% during mid-day trading on Tuesday, reaching $17.12. The company’s stock had a trading volume of 7,989,307 shares. The stock has a market cap of $7.55 billion, a P/E ratio of 34.66 and a beta of -0.07. Under Armour has a one year low of $16.94 and a one year high of $43.85. The firm’s 50 day moving average is $19.65 and its 200-day moving average is $20.20.
Under Armour (NYSE:UAA) last issued its earnings results on Tuesday, August 1st. The company reported ($0.03) EPS for the quarter, topping the Zacks’ consensus estimate of ($0.06) by $0.03. The business had revenue of $1.09 billion for the quarter, compared to analyst estimates of $1.08 billion. Under Armour had a net margin of 4.38% and a return on equity of 10.93%. Under Armour’s revenue for the quarter was up 8.7% on a year-over-year basis. Equities analysts expect that Under Armour will post $0.38 earnings per share for the current fiscal year.
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Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Nomura Asset Management Co. Ltd. purchased a new position in Under Armour during the first quarter worth $405,000. Private Asset Management Inc. bought a new stake in Under Armour during the second quarter worth approximately $923,000. DnB Asset Management AS bought a new stake in Under Armour during the second quarter worth approximately $405,000. Xact Kapitalforvaltning AB bought a new stake in Under Armour during the second quarter worth approximately $474,000. Finally, Burns J W & Co. Inc. NY bought a new stake in Under Armour during the second quarter worth approximately $480,000. 29.59% of the stock is owned by institutional investors.
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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