Full Answer
What's happening with Under Armour stock?
Much of Under Armour's recent stock decline can be attributed to the departure of two key executives. The chief merchandising officer position is temporarily being backfilled by the current chief marketing officer, Kip Fulks, while the chief digital officer role will be taken over by MyFitnessPal co-founder Michael Lee.
Will Under Armour's inventory levels increase?
In Under Armour's defense, management did put investors on alert that inventory levels will increase. In a presentation to investors in September 2015, COO Brad Dickerson had this to say about increasing inventory:
What are Under Armour's biggest risks?
Let's take a look at some of the biggest risks to its business. Much of Under Armour's recent stock decline can be attributed to the departure of two key executives.
What is the Under Armour lawsuit about?
The suit alleges that Under Armour artificially increased quarterly revenue numbers to conceal slowing sales and that Plank personally profited from the company’s “artificially inflated” valuation. Plaintiffs allege that Plank adopted his prearranged stock trading plan at a time when he knew about an internal effort to mislead investors.
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Why is Under Armour stock falling?
The stock has actually been impacted since May 6 when Under Armour reported earnings that did not meet analyst expectations. The company reported a net loss of $60 million in the quarter, with an adjusted loss of $3 million. Revenue was up 3 percent over the same period last year to $1.3 billion.
Is Under Armour stock undervalued?
Athleisure apparel and footwear maker Under Armour (NYSE: UAA) stock has been falling within the proximity of revisiting its pandemic lows. Athleisure apparel and footwear maker Under Armour (NYSE: UAA) stock has been falling within the proximity of revisiting its pandemic lows.
Is Under Armour stock a good buy?
Currently, Under Armour Inc's price-earnings ratio is 21.6. Under Armour Inc's trailing 12-month revenue is $5.7 billion with a 3.9% profit margin. Year-over-year quarterly sales growth most recently was 3.5%. Analysts expect adjusted earnings to reach $0.681 per share for the current fiscal year.
Where does Under Armour trade stock?
Stock Information Under Armour has two classes of publicly traded common stock listed on the New York Stock Exchange: UAA (Class A) and UA (Class C).
Is UAA a buy or sell?
Each stock's consensus analyst rating is derived from its calculated consensus ratings score (0-1.5 = Sell, 1.5-2.5 = Hold, 2.5-3.5 = Buy, >3.5 = Strong Buy)....Consensus Analyst Price Target.High Price Target$40.00Low Price Target$10.001 more row
What's the difference between UA and UAA stock?
UAA Stock Differences. The most striking difference between UA stock and UAA stock is that the former has no voting rights, while the latter has one vote per share. The ticker "UA" represents Class C shares, while "UAA" represents Class A voting shares.
Will Under Armour stock recover?
Under Armour / UAA Analysts estimate that it will earn 79 cents a share in calendar 2022 after last year's 77 cents, on a 6% increase in sales, to $6 billion. The consensus calls for 2022 sales to rise about 9% and 22% at Nike and Lululemon, respectively.
Will Under Armour ever pay a dividend?
Does Under Armour pay a dividend? At the present time we do not pay a dividend on our common stock.
Is Nike a buy or sell?
NIKE has received a consensus rating of Moderate Buy. The company's average rating score is 2.79, and is based on 22 buy ratings, 6 hold ratings, and no sell ratings.
Who is owner of Under Armour?
founder Kevin PlankUnder Armour founder Kevin Plank built a popular sportswear brand as the underdog competitor to Nike. Noticing his football teammates' sweat-soaked shirts, Plank came up with a lightweight, sweat-wicking shirt using fabrics from women's undergarments.
How many shares of Under Armour are there?
Share StatisticsAvg Vol (3 month) 35.8MShares Outstanding 5238.5MImplied Shares Outstanding 6N/AFloat 8390.46M% Held by Insiders 113.71%7 more rows
What is the beta for Under Armour?
1.28Performance OutlookMarket Cap3.889BBeta (5Y Monthly)1.28PE Ratio (TTM)17.12EPS (TTM)0.47Earnings DateApr 25, 2018 - Apr 30, 20183 more rows
How much did Under Armour sales fall in Q3?
Under Armour’s sales in North America fell 4% in Q3. That’s the fifth quarter in a row of North America sales declines; the last time Under Armour’s sales grew in the U.S. was Q2 of 2018.
How many quarters did Under Armour have 20% growth?
Make no mistake: There is a lot Under Armour did right for a long time, hence the incredible streak of 27 straight quarters of 20% sales growth. But when that streak ended, it came to an abrupt and sustained halt. Under Armour Class A shares in 2019, through Nov. 8.
Why did Scott Plank leave the company?
Scott Plank, Kevin Plank’s brother, left in 2012, allegedly amid accusations of sexual misconduct (and in 2018 he was accused of exposing himself in the lobby of a condo building); Kip Fulks, Kevin Plank’s cofounder and college friend, left in 2017 after disclosing to HR a relationship with a subordinate.
Can Under Armour employees charge strip club visits?
Last November, the Wall Street Journal reported a new change inside the company: Under Armour employees could no longer charge strip club visits to their corporate cards . The fact that they were allowed to until 2018 became the focus of much derision.
Does Under Armour hurt Nike?
The brick-and-mortar losses have hurt Nike and Adidas, too. But Under Armour, analysts say, has discounted its gear in big-box chains more than its competitors, and that has hurt the brand as a result.
Is the sports apparel industry athleisure?
But in 2019 the sports apparel industry is, indeed, about athleisure. This year, Plank also said, “ We’re going to double-down on performance .”. That hasn’t gone well.
UA Stock vs. UAA Stock Differences
The most striking difference between UA stock and UAA stock is that the former has no voting rights, while the latter has one vote per share. The ticker "UA" represents Class C shares, while "UAA" represents Class A voting shares.
The Rationale Behind Under Armour's Two Stock Classes
Under Armour's dual-class shares aren't wholly unique. A number of other prominent public companies have more than one class of shares as well.
The Future of Dual-Class Shares
While the 2010s were the heyday of the dual-class share structure, its popularity could also be its undoing.
Should You Buy UA or UAA Stock?
When it comes to the implications for current or prospective Under Armour shareholders, the practical takeaway is that both UA and UAA offer virtually no say over how the company will operate.
How much did Under Armour pay to settle charges?
Under Armour has agreed to pay $9 million to settle charges by the Securities and Exchange Commission that it misled investors.
Does Under Armour have a pull forward strategy?
The SEC said that Under Armour failed to attribute its revenue growth to its “pull forward” tactics and that the company’s reliance on pulling forward future sales “raised significant uncertainty” as to whether it would meet its revenue guidance in future quarters. The SEC said Under Armour has agreed to cease and desist the practice.
Is Under Armour being sued by the SEC?
The SEC doesn’t plan to pursue enforcement against Under Armour co-founder and chairman Kevin Plank or CFO David Bergman, Under Armour said. The company had previously disclosed that the two men were told they could be sued by the SEC.
How much inventory did Under Armour have in 2016?
Under Armour's inventory growth for the first quarter of 2016 came in at 44%, well above revenue growth of 30% . This marked the third consecutive quarter that inventory grew faster than revenue. This is a concern, particularly for retailers, as excess inventory is typically followed by deeper discounting to clear shelves for newer products.
Who is the CEO of Under Armour?
Under Armour founder and CEO Kevin Plank. Image source: Under Armour. In 1995, CEO Kevin Plank created a T-shirt that wicked away moisture for his former football team at the University of Maryland. After perfecting the design, he began selling those T-shirts out of the back of his trunk, and 20 years later, he has led Under Armour in developing ...
How much did Under Armour spend on fitness apps?
Since 2013, Under Armour has spent nearly $1 billion acquiring three fitness and activity apps. The purchases of MapMyFitness, MyFitnessPal, and Endomondo are a part of Under Armour's strategy of connecting with customers and increasing awareness and sales through its wholesale and direct-to-consumer channels.
Is Under Armour still investing in digital fitness?
Under Armour is still in the early innings of its investment in digital fitness . As the business matures, investors should look for increasing returns. If the business continues to shrink company margins, investors may need to think twice about this strategy.
How many quarters did Under Armour stock stop trading?
In a statement, Under Armour spokesman Tamarin said Plank sold stock regularly over 18 consecutive quarters and paused trading for two quarters in 2015 “as the Company was working through a publicly disclosed recapitalization.”.
How many shares does Under Armour own?
The executive still owns more than 68 million shares, or about 15 percent of the company, and retains majority voting control, according to Bloomberg data.
How much did Under Armour sell?
Under Armour founder sold $138 million in stock during time period company allegedly misled investors about slowing sales. The apparel maker’s $9 million settlement with the SEC was cited in a class-action lawsuit accusing former CEO Kevin Plank of profiting from the company’s ‘deliberately inflated’ valuation.
How much did Plank sell in 2016?
Plank sold $38 million in shares during the spring of 2016. The stock price peaked at $44 in April of that year, then gradually slid downhill as investors saw rivals including Nike and Adidas gaining ground on Under Armour’s apparel business. Under Armour, strip club expenses and the #MeToo perils of star cultures.
What was Under Armour's investigation?
The public comments and financial statements of Under Armour executives from late 2015 to early 2017 were the subject of a four-year accounting probe by the U.S. Securities and Exchange Commission, which charged Under Armour with violating securities laws. In its May 3 order, the SEC said the Baltimore-based company failed “to disclose material ...
Did Under Armour get dismissed?
Under Armour initially succeeded in getting the shareholder lawsuit dismissed in 2019, when a U.S. district judge in Maryland found that the plaintiffs did not have enough evidence to prove intent of wrongdoing, according to court documents.
Is Under Armour a class action lawsuit?
A group of pension retirees and other investors who originally filed a class-action lawsuit against Under Armour in 2017 are now citing the settlement, in a letter to a federal judge, as a reason the litigation should move forward.
