Shares of Under Armour Inc (NYSE:UA) are trading down over $3.70 this morning in the pre-market after analyst Jay Sole from Morgan Stanley downgraded the stock to ‘Underweight’. Sole believes that the company will lose market share for the first time in three years within their apparel business. Sole also believes that the company’s margins may be declining as their running shoe prices are also coming down, leading him to cut his price target from $103 to $62.
Over the last five months shares of Under Armour Inc (NYSE:UA) have dropped close to 30%, and have started 2016 off quite poorly. The stock decreased 0.03% or $0.02 during the last trading session, hitting $74.98. Approximately 44,910 shares traded hands. UA shares have declined 8.36% since June 5, 2015 and are currently downtrending. It has underperformed the S&P500 by 3.67%.
From a total of 16 analysts covering Under Armour (NYSE:UA) stock, 10 rate it a “Buy”, 0 a “Sell”, and 6 a “Hold”. This means that 63% of the ratings are positive. The highest target price is $131 while the lowest target price is $86. The mean of all analyst targets is $107.52 which is 43.40% above today’s ($74.98) stock price. Under Armour was the topic of 32 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Berenberg initiated shares on January 5 with a “Buy” rating. Telsey Advisory Group maintained shares with a”Outperform” rating and a $111 target share price in their report from a September 17. Mizuho initiated UA stock in a recent report from December 18 with a “Buy” rating. FBR Capital maintained the rating on September 17. FBR Capital has a “Outperform” rating and a $115 price target on shares. Finally, BB&T Capital downgraded the stock to a “Hold” rating in a report they issued on an October 23.
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 has a market cap of $16.19 billion. The Company’s moisture-wicking fabrications are engineered in a range of creates and styles for wear in nearly every climate to provide an alternative to traditional products. It has 77.67 P/E ratio. The Company’s operating divisions include North America, consisting of the United States and Canada; Europe, the Middle East and Africa ; Asia-Pacific; Latin America, and MapMyFitness.