Under Armour Inc. [UA] is -37.23% lower this YTD. Is it still time to buy?

 Under Armour Inc. [UA] is -37.23% lower this YTD. Is it still time to buy?

Under Armour Inc. [NYSE: UA] gained 3.26% on the last trading session, reaching $12.04 price per share at the time. The company report on October 16, 2020 that Under Armour Announces Third Quarter 2020 Earnings And Conference Call Date.

Under Armour, Inc. (NYSE: UA, UAA) plans to release the results of its third quarter (ended Sept. 30) on Oct. 30, 2020 at 6:55 a.m. Eastern Daylight Time (EDT). Following the news release, Under Armour management will host a conference call at approximately 8:30 a.m. EDT to review results.

This call will be webcast live at https://about.underarmour.com/investor-relations/financials and made available for replay approximately three hours after conclusion of the event.

Under Armour Inc. represents 451.83 million in outstanding shares, while the company has a total market value of $5.44 billion with the latest information. UA stock price has been found in the range of $11.52 to $12.245.

If compared to the average trading volume of 4.65M shares, UA reached a trading volume of 5863760 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Under Armour Inc. [UA]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for UA shares is $13.50 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on UA stock is a recommendation set at 4.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Instinet have made an estimate for Under Armour Inc. shares, keeping their opinion on the stock as Reduce, with their previous recommendation back on February 27, 2017. The new note on the price target was released on February 14, 2017, representing the official price target for Under Armour Inc. stock. Previously, the target price had yet another drop from $33 to $28, while Stifel kept a Hold rating on UA stock. On October 26, 2016, analysts decreased their price target for UA shares from 49 to 35.

The Average True Range (ATR) for Under Armour Inc. is set at 0.50, with the Price to Sales ratio for UA stock in the period of the last 12 months amounting to 1.21. The Price to Book ratio for the last quarter was 3.84.

Trading performance analysis for UA stock

Under Armour Inc. [UA] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -3.14. With this latest performance, UA shares gained by 22.36% in over the last four-week period, additionally plugging by 37.44% over the last 6 months – not to mention a drop of -35.34% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for UA stock in for the last two-week period is set at 62.32, with the RSI for the last a single of trading hit 60.11, and the three-weeks RSI is set at 61.34 for Under Armour Inc. [UA]. The present Moving Average for the last 50 days of trading for this stock 10.31, while it was recorded at 12.12 for the last single week of trading, and 10.40 for the last 200 days.

Under Armour Inc. [UA]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Under Armour Inc. [UA] shares currently have an operating margin of +4.06 and a Gross Margin at +46.51. Under Armour Inc.’s Net Margin is presently recorded at +1.76.

Return on Total Capital for UA is now 6.89, given the latest momentum, and Return on Invested Capital for the company is 3.05. Return on Equity for this stock inclined to 4.42, with Return on Assets sitting at 2.03. When it comes to the capital structure of this company, Under Armour Inc. [UA] has a Total Debt to Total Equity ratio set at 60.43. Additionally, UA Total Debt to Total Capital is recorded at 37.67, with Total Debt to Total Assets ending up at 26.82. Long-Term Debt to Equity for the company is recorded at 54.57, with the Long-Term Debt to Total Capital now at 34.02.

Reflecting on the efficiency of the workforce at the company, Under Armour Inc. [UA] managed to generate an average of $5,618 per employee. Receivables Turnover for the company is 7.55 with a Total Asset Turnover recorded at a value of 1.15.

Under Armour Inc. [UA]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Under Armour Inc. posted 0.23/share EPS, while the average EPS was predicted by analysts to be reported at 0.18/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 27.80%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for UA. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Under Armour Inc. go to 21.80%.

An analysis of insider ownership at Under Armour Inc. [UA]

There are presently around $1,949 million, or 74.44% of UA stock, in the hands of institutional investors. The top three institutional holders of UA stocks are: WELLINGTON MANAGEMENT GROUP LLP with ownership of 28,987,984, which is approximately 29.905% of the company’s market cap and around 15.29% of the total institutional ownership; VANGUARD GROUP INC, holding 23,518,633 shares of the stock with an approximate value of $283.16 million in UA stocks shares; and ADAGE CAPITAL PARTNERS GP, L.L.C., currently with $177.4 million in UA stock with ownership of nearly 39.153% of the company’s market capitalization.

Positions in Under Armour Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 123 institutional holders increased their position in Under Armour Inc. [NYSE:UA] by around 46,528,730 shares. Additionally, 187 investors decreased positions by around 32,769,716 shares, while 114 investors held positions by with 82,591,356 shares. The mentioned changes placed institutional holdings at 161,889,802 shares, according to the latest SEC report filing. UA stock had 33 new institutional investments in for a total of 6,125,728 shares, while 75 institutional investors sold positions of 21,499,701 shares during the same period.

An article written by Caleb Clifford on dbtnews.com

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