Under Armour (NYSE:UAA) Rating Lowered to Underweight at Morgan Stanley

Under Armour (NYSE:UAA) was downgraded by equities researchers at Morgan Stanley from an “equal weight” rating to an “underweight” rating in a research report issued on Tuesday, Marketbeat.com reports. They currently have a $4.00 price target on the stock, down from their prior price target of $8.00. Morgan Stanley’s price target suggests a potential downside of 38.74% from the stock’s current price.

Other equities research analysts also recently issued reports about the company. Telsey Advisory Group reissued a “market perform” rating and issued a $8.00 price objective on shares of Under Armour in a report on Thursday, May 16th. Oppenheimer downgraded shares of Under Armour from an “outperform” rating to a “market perform” rating in a research report on Thursday, May 23rd. Barclays reduced their target price on shares of Under Armour from $9.00 to $6.00 and set an “equal weight” rating for the company in a report on Monday, May 20th. Wells Fargo & Company lowered their price target on Under Armour from $7.00 to $6.00 and set an “equal weight” rating on the stock in a report on Friday, May 17th. Finally, JPMorgan Chase & Co. downgraded Under Armour from a “neutral” rating to an “underweight” rating and reduced their price objective for the company from $8.00 to $6.00 in a research note on Thursday, May 16th. Three equities research analysts have rated the stock with a sell rating, twelve have given a hold rating and one has assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $7.04.

Under Armour Price Performance

Shares of UAA opened at $6.53 on Tuesday. The company has a debt-to-equity ratio of 0.28, a current ratio of 2.46 and a quick ratio of 1.63. Under Armour has a 1-year low of $6.18 and a 1-year high of $9.50. The stock has a market cap of $2.85 billion, a PE ratio of 12.09, a price-to-earnings-growth ratio of 3.39 and a beta of 1.67. The firm has a fifty day moving average price of $6.80 and a 200 day moving average price of $7.27.

Under Armour (NYSE:UAA) last posted its earnings results on Thursday, May 16th. The company reported $0.11 EPS for the quarter, topping analysts’ consensus estimates of $0.07 by $0.04. The business had revenue of $1.33 billion for the quarter, compared to analysts’ expectations of $1.33 billion. Under Armour had a return on equity of 11.95% and a net margin of 4.19%. The business’s revenue was down 4.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.18 earnings per share. As a group, sell-side analysts anticipate that Under Armour will post 0.2 EPS for the current year.

Under Armour declared that its Board of Directors has authorized a share buyback program on Thursday, May 16th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to buy up to 16.8% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Hedge Funds Weigh In On Under Armour

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. grew its position in Under Armour by 7.5% during the third quarter. Vanguard Group Inc. now owns 18,196,402 shares of the company’s stock worth $124,645,000 after buying an additional 1,269,037 shares during the period. Teacher Retirement System of Texas raised its position in Under Armour by 39.3% during the fourth quarter. Teacher Retirement System of Texas now owns 27,524 shares of the company’s stock worth $242,000 after acquiring an additional 7,771 shares during the last quarter. Dimensional Fund Advisors LP raised its position in Under Armour by 29.7% during the fourth quarter. Dimensional Fund Advisors LP now owns 7,154,871 shares of the company’s stock worth $62,893,000 after acquiring an additional 1,636,634 shares during the last quarter. Jupiter Asset Management Ltd. purchased a new stake in shares of Under Armour in the first quarter valued at about $8,944,000. Finally, Virtu Financial LLC acquired a new stake in shares of Under Armour in the fourth quarter valued at approximately $440,000. 34.58% of the stock is owned by institutional investors and hedge funds.

Under Armour Company Profile

Under Armour, Inc, together with its subsidiaries, develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth. The company provides its apparel in compression, fitted, and loose fit types. It also offers footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications.