Under Armor (NYSE:UAA) hits new 12-month low on weak earnings

Under Armour, Inc. (NYSE:UAA – Get Rating) hit a new 52-week low during Friday’s trading session after a disappointing earnings announcement. The company traded as low as $10.39 and last traded at $10.46, with a volume of 257,337 shares traded in hands. The stock previously closed at $14.29. The company reported ($0.01) earnings per share for the quarter, missing the consensus estimate of $0.04 per ($0.05). Under Armor has a return on equity of 20.66% and a net margin of 6.34%. The company posted revenue of $1.30 billion for the quarter, versus a consensus estimate of $1.34 billion. During the same period of the previous year, the company achieved EPS of $0.16. The company’s revenue increased by 3.4% compared to the same quarter last year.

Under Armor said its board of directors authorized a stock repurchase plan on Wednesday, Feb. 23 that allows the company to repurchase $500.00 million of outstanding stock. This repurchase authorization authorizes the company to repurchase up to 6.1% of its shares by way of purchases on the open market. Stock repurchase plans usually indicate that the company’s board of directors believe its stock is undervalued.

A number of research analysts have weighed in on the stock. BMO Capital Markets downgraded Under Armor shares from a “market performance” rating to an “outperform” rating and raised its price target for the company from $23.00 to $25.00 in a research note from Tuesday, January 18. BTIG Research downgraded Under Armor shares from a “sell” rating to a “neutral” rating in a Friday, February 25 research report. Morgan Stanley downgraded Under Armor shares from an “equal weight” rating to an “overweight” rating and raised its price target for the stock from $23.00 to $24.00 in a Wednesday, February 2 research report. BNP Paribas downgraded Under Armor shares from an ‘underperforming’ to a ‘neutral’ rating and set a price target of $18.00 on the stock in a Wednesday 19 research report. january. Finally, Seaport Res Ptn reissued a “neutral” rating on Under Armor shares in a Tuesday, January 18 research report. Ten investment analysts gave the stock a hold rating and sixteen gave the company a buy rating. According to data from MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus target price of $25.13.

Several large investors have recently increased or reduced their stake in the company. State Street Corp increased its stake in shares of Under Armor by 4.3% in the fourth quarter. State Street Corp now owns 8,169,820 shares of the company valued at $173,118,000 after acquiring an additional 338,709 shares last quarter. Renaissance Technologies LLC increased its stake in shares of Under Armor to 83.9% in the fourth quarter. Renaissance Technologies LLC now owns 6,531,305 shares of the company valued at $138,398,000 after acquiring an additional 2,979,005 shares last quarter. Arrowstreet Capital Limited Partnership increased its stake in Under Armor shares by 13.6% in the third quarter. Arrowstreet Capital Limited Partnership now owns 6,094,949 shares of the company valued at $122,996,000 after acquiring an additional 731,826 shares in the last quarter. SRS Investment Management LLC increased its stake in Under Armor shares by 7.3% in the third quarter. SRS Investment Management LLC now owns 5,627,511 shares of the company valued at $113,563,000 after acquiring 381,398 additional shares last quarter. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main increased its stake in Under Armor shares by 27.6% in the fourth quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 5,571,175 shares of the company valued at $117,239,000 after acquiring an additional 1,206,368 shares in the last quarter. Hedge funds and other institutional investors hold 38.72% of the company’s shares.

The company has a quick ratio of 1.74, a current ratio of 2.30 and a debt ratio of 0.32. The company’s 50-day moving average is $16.24 and its 200-day moving average is $19.53. The company has a market capitalization of $5.29 billion, a price-earnings ratio of 14.01 and a beta of 1.25.

Under Armor Company Profile (NYSE:UAA)

Under Armour, Inc, together with its subsidiaries, engages in the development, marketing and distribution of performance apparel, footwear and accessories for men, women and youth. The company offers its garments in compression, form-fitting and baggy types. It also provides shoes for running, training, basketball, cleats, recovery and outdoor applications.

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