Under Armour (NYSE:UAA) Shares Gap Down – Should You Sell?

Shares of Under Armour, Inc. (NYSE:UAA) gapped down prior to trading on Friday . The stock had previously closed at $6.40, but opened at $6.10. Under Armour shares last traded at $6.0850, with a volume of 3,274,077 shares trading hands.

Under Armour News Summary

Here are the key news stories impacting Under Armour this week:

• Positive Sentiment: Under Armour reported fiscal first-quarter earnings of $0.05 per share, exceeding the $0.02 analyst consensus and improving from $0.02 a year earlier. The company also maintained its full-year profitability outlook. Under Armour Q1 Earnings Top Estimates
• Neutral Sentiment: The quarterly report showed Under Armour swinging to a small profit despite challenging conditions in North America and Asia-Pacific. However, revenue declined 3.2% year over year, indicating that earnings improvements have not yet been matched by sales growth. Under Armour Posts Lower Revenue on Soft Demand
• Negative Sentiment: Management forecast a steeper full-year revenue decline, citing weak consumer spending and macroeconomic uncertainty, particularly in North America. The updated outlook suggests demand remains a major obstacle for the turnaround. Under Armour Forecasts Steeper Annual Sales Decline
• Negative Sentiment: Second-quarter fiscal 2027 EPS guidance of $(0.03) to $(0.01) was well below the $0.06 consensus estimate. Full-year EPS guidance of $0.08 to $0.12 is centered near analyst expectations, but the weak near-term outlook raises concerns about the pace of recovery. Under Armour Cuts Annual Revenue Outlook
• Negative Sentiment: Unusually heavy options activity preceded the report, with traders buying 18,771 put options—about 476% above typical daily volume—signaling elevated hedging or bearish speculation. Under Armour Options Activity

Analyst Ratings Changes

Several analysts have weighed in on UAA shares. Wall Street Zen upgraded shares of Under Armour from a “sell” rating to a “hold” rating in a research note on Sunday, May 24th. Truist Financial decreased their target price on shares of Under Armour from $8.00 to $5.00 and set a “hold” rating on the stock in a research report on Wednesday, May 13th. UBS Group reiterated a “buy” rating and issued a $10.00 price target (down from $11.00) on shares of Under Armour in a research report on Thursday, May 14th. Telsey Advisory Group reduced their price target on Under Armour from $6.00 to $5.50 and set a “market perform” rating on the stock in a research report on Wednesday, May 13th. Finally, Citigroup restated a “sell” rating and set a $4.75 price objective (down from $6.20) on shares of Under Armour in a research note on Wednesday, May 13th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, fourteen have given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Reduce” and a consensus target price of $5.91.

Under Armour Trading Down 2.6%

The firm’s fifty day simple moving average is $6.41 and its 200 day simple moving average is $6.36. The stock has a market capitalization of $2.66 billion, a P/E ratio of -5.40, a price-to-earnings-growth ratio of 2.23 and a beta of 1.67. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.08 and a current ratio of 1.62.

Under Armour (NYSE:UAA) last issued its quarterly earnings results on Friday, August 7th. The company reported $0.05 earnings per share for the quarter, topping analysts’ consensus estimates of $0.02 by $0.03. Under Armour had a negative net margin of 9.98% and a positive return on equity of 3.01%. The business’s revenue was down 3.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.02 earnings per share. Under Armour has set its FY 2027 guidance at 0.080-0.120 EPS and its Q2 2027 guidance at -0.030–0.010 EPS. As a group, equities research analysts forecast that Under Armour, Inc. will post 0.11 EPS for the current fiscal year.

Insider Buying and Selling

In other Under Armour news, major shareholder V Prem Et Al Watsa bought 739,521 shares of the business’s stock in a transaction on Wednesday, May 13th. The stock was purchased at an average cost of $4.97 per share, for a total transaction of $3,675,419.37. Following the completion of the purchase, the insider directly owned 44,179,116 shares of the company’s stock, valued at approximately $219,570,206.52. This trade represents a 1.70% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. Insiders have purchased 1,178,344 shares of company stock worth $5,865,147 in the last three months. 15.70% of the stock is owned by insiders.

Hedge Funds Weigh In On Under Armour

Several hedge funds and other institutional investors have recently modified their holdings of UAA. Deltroit Asset Management UK LLP bought a new stake in Under Armour during the 4th quarter worth $9,909,000. Bleakley Financial Group LLC increased its holdings in Under Armour by 99.7% in the 1st quarter. Bleakley Financial Group LLC now owns 476,521 shares of the company’s stock worth $2,816,000 after purchasing an additional 237,957 shares in the last quarter. Fairfax Financial Holdings Ltd. Can raised its position in Under Armour by 564.8% in the fourth quarter. Fairfax Financial Holdings Ltd. Can now owns 41,958,923 shares of the company’s stock valued at $208,536,000 after purchasing an additional 35,647,123 shares during the last quarter. WINTON GROUP Ltd bought a new position in Under Armour in the fourth quarter valued at about $1,343,000. Finally, Vanguard Group Inc. boosted its stake in shares of Under Armour by 11.3% during the fourth quarter. Vanguard Group Inc. now owns 17,168,819 shares of the company’s stock valued at $85,329,000 after purchasing an additional 1,747,120 shares in the last quarter. Institutional investors own 34.58% of the company’s stock.

About Under Armour

Under Armour, Inc (NYSE: UAA) is a global designer, marketer and distributor of performance athletic apparel, footwear and accessories. The company’s product portfolio spans a range of categories including training and running shoes, performance apparel engineered to manage moisture and temperature, and a variety of accessories such as bags, socks and headwear. Under Armour positions its offerings to serve athletes at every level—from professionals to everyday fitness enthusiasts—by combining innovative fabrics, advanced footwear technology and functional design.

Founded in 1996 by Kevin Plank, a former University of Maryland football player, Under Armour initially gained recognition for its moisture-wicking T-shirts, which provided a lightweight alternative to traditional cotton.