Zacks Investment Research lowered shares of Under Armour, Inc. (NYSE:UAA) from a hold rating to a sell rating in a report released on Friday morning.

According to Zacks, “Under Armour’s better-than-expected results in second-quarter 2017 failed to cushion the stock, which has witnessed a sharp decline in the past one year and underperformed the industry by a wide range. Investors’ sentiments were further dampened by the company’s conservative sales guidance for the full year. The company now expects net revenue for 2017 to rise in the range of 9–11%, down from the prior estimate of an increase of 11–12% over the 2016 level primarily due to moderation in North American business. Further, it anticipates adjusted gross margin to decline by a minimum of 120 basis points in 2017 due to foreign currency headwinds, restructuring plan and efforts toward managing inventory. Nevertheless, the company’s sustained focus on brand development, expansion of direct-to-consumer and technology-based fitness business bode well.”

UAA has been the subject of a number of other research reports. Vetr upgraded Under Armour from a buy rating to a strong-buy rating and set a $22.90 price objective for the company in a research report on Monday, May 15th. OTR Global restated a negative rating on shares of Under Armour in a report on Tuesday, July 18th. Oppenheimer Holdings, Inc. restated a market perform rating on shares of Under Armour in a report on Tuesday, April 25th. Credit Suisse Group restated an underperform rating and issued a $17.00 target price on shares of Under Armour in a report on Wednesday, August 2nd. Finally, Jefferies Group LLC restated a buy rating and issued a $27.00 target price on shares of Under Armour in a report on Thursday, April 6th. Thirteen analysts have rated the stock with a sell rating, twenty-two have given a hold rating and six have assigned a buy rating to the company. Under Armour has an average rating of Hold and an average price target of $23.32.

Under Armour (NYSE:UAA) last announced its quarterly earnings data on Tuesday, August 1st. The company reported ($0.03) EPS for the quarter, beating analysts’ consensus estimates of ($0.06) by $0.03. Under Armour had a return on equity of 10.93% and a net margin of 4.38%. The company had revenue of $1.09 billion during the quarter, compared to the consensus estimate of $1.08 billion. The business’s revenue for the quarter was up 8.7% compared to the same quarter last year.

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In related news, insider Kerry D. Chandler sold 5,921 shares of the stock in a transaction dated Tuesday, May 9th. The shares were sold at an average price of $21.38, for a total value of $126,590.98. Following the completion of the sale, the insider now owns 12,803 shares in the company, valued at $273,728.14. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director William R. Mcdermott sold 4,799 shares of the stock in a transaction dated Tuesday, May 9th. The shares were sold at an average price of $21.40, for a total transaction of $102,698.60. Following the completion of the sale, the director now owns 59,657 shares of the company’s stock, valued at approximately $1,276,659.80. The disclosure for this sale can be found here. In the last quarter, insiders sold 15,519 shares of company stock valued at $331,652. 16.40% of the stock is owned by corporate insiders.

Several large investors have recently added to or reduced their stakes in UAA. Cornerstone Advisors Inc. bought a new stake in Under Armour during the second quarter valued at $124,000. Municipal Employees Retirement System of Michigan bought a new stake in Under Armour during the second quarter valued at $129,000. Global X Management Co. LLC acquired a new position in shares of Under Armour during the second quarter worth approximately $134,000. Private Capital Management Inc. acquired a new position in shares of Under Armour during the second quarter worth approximately $141,000. Finally, Horan Capital Management acquired a new position in shares of Under Armour during the second quarter worth approximately $150,000. Institutional investors and hedge funds own 29.27% of the company’s stock.

Under Armour Company Profile

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’s segments include North America, consisting of the United States and Canada; Europe, the Middle East and Africa (EMEA); Asia-Pacific; Latin America, and Connected Fitness.

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Analyst Recommendations for Under Armour (NYSE:UAA)

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