Under Armour (UAA) Raised to “Buy” at Zacks Investment Research

Under Armour (NYSE:UAA) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Wednesday, Zacks.com reports. The brokerage presently has a $25.00 target price on the stock. Zacks Investment Research‘s price objective indicates a potential upside of 13.02% from the company’s previous close.

According to Zacks, “Under Armour’s sustained focus on brand development and expansion of DTC and technology-based fitness businesses bode well for the stock that has risen and outpaced the industry in a year. Furthermore, apart from rolling out e-commerce platforms, the company continues to look for opportunities to expand footprint. These efforts have aided to post better-than-expected first-quarter 2019 results, wherein both the top and bottom-line grew year over year. The results were driven by sturdy performance in international business that helped offset dismal performance in North America. While management kept 2019 revenue growth projection intact, it lift earnings per share view. Revenues from North America are likely to remain flat, while international business is expected to register low-double digit growth. To ensure business growth, management has set certain long-term strategic plans and is also concentrating on lowering debt.”

Other equities research analysts have also recently issued reports about the company. Credit Suisse Group reiterated a “neutral” rating and issued a $26.00 target price on shares of Under Armour in a report on Tuesday, April 30th. Citigroup upgraded Under Armour from a “neutral” rating to a “buy” rating and upped their target price for the stock from $23.00 to $29.00 in a report on Wednesday, April 10th. UBS Group upped their target price on Under Armour from $21.00 to $23.00 and gave the stock a “neutral” rating in a report on Wednesday, February 13th. JPMorgan Chase & Co. restated a “neutral” rating and set a $22.00 price objective on shares of Under Armour in a research note on Tuesday, February 12th. Finally, Argus restated a “hold” rating on shares of Under Armour in a research note on Friday, February 22nd. Five equities research analysts have rated the stock with a sell rating, eleven have issued a hold rating and six have given a buy rating to the company. Under Armour presently has an average rating of “Hold” and an average target price of $23.66.

Shares of UAA stock opened at $22.12 on Wednesday. Under Armour has a twelve month low of $16.52 and a twelve month high of $24.96. The firm has a market capitalization of $9.85 billion, a price-to-earnings ratio of 81.93, a PEG ratio of 2.96 and a beta of 0.45. The company has a debt-to-equity ratio of 0.58, a current ratio of 2.02 and a quick ratio of 1.22.

Under Armour (NYSE:UAA) last issued its earnings results on Thursday, May 2nd. The company reported $0.05 earnings per share for the quarter. Under Armour had a return on equity of 7.17% and a net margin of 0.12%. The business had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.18 billion. The firm’s quarterly revenue was up 1.6% compared to the same quarter last year. As a group, equities analysts forecast that Under Armour will post 0.34 EPS for the current year.

In related news, insider Paul Fipps sold 3,106 shares of the company’s stock in a transaction on Friday, February 22nd. The stock was sold at an average price of $21.55, for a total transaction of $66,934.30. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 16.40% of the company’s stock.

Institutional investors have recently added to or reduced their stakes in the business. MERIAN GLOBAL INVESTORS UK Ltd raised its stake in Under Armour by 2,618.3% in the fourth quarter. MERIAN GLOBAL INVESTORS UK Ltd now owns 1,981,761 shares of the company’s stock valued at $35,017,000 after buying an additional 1,908,857 shares during the last quarter. Piedmont Investment Advisors Inc. raised its stake in Under Armour by 7.4% in the fourth quarter. Piedmont Investment Advisors Inc. now owns 12,975 shares of the company’s stock valued at $229,000 after buying an additional 891 shares during the last quarter. Bank of Nova Scotia raised its stake in Under Armour by 7.6% in the fourth quarter. Bank of Nova Scotia now owns 35,273 shares of the company’s stock valued at $623,000 after buying an additional 2,495 shares during the last quarter. Vanguard Group Inc raised its stake in Under Armour by 0.6% in the third quarter. Vanguard Group Inc now owns 18,886,120 shares of the company’s stock valued at $400,763,000 after buying an additional 120,978 shares during the last quarter. Finally, Pennsylvania Trust Co purchased a new stake in Under Armour in the first quarter valued at about $9,194,000. Institutional investors own 39.06% of the company’s stock.

About Under Armour

Under Armour, Inc, together with its subsidiaries, develops, markets, and distributes branded performance apparel, footwear, and accessories for men, women, and youth primarily in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. The company offers its apparel in compression, fitted, and loose types to be worn in hot and cold.

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