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Under Armour Inc’s Class A stock recently fell to a 52-week low, reaching $4.76 per share. This milestone highlights a challenging year for the athletic apparel company, which currently has a market capitalization of $2.05 billion and trades at a P/E ratio of 20.8x. The stock has experienced a significant decline of 45.19% over the past year, despite maintaining a healthy gross margin of 48.07% on revenues of $5.11 billion. According to InvestingPro analysis, the stock appears undervalued at current levels. The drop to this new low reflects ongoing market pressures and competitive dynamics that have impacted Under Armour’s financial performance and investor sentiment. The company’s efforts to regain market share and improve profitability will be closely watched by analysts and investors as they navigate these turbulent times. InvestingPro data reveals 22 analysts have recently revised their earnings expectations downward, though the company is still expected to remain profitable this year. Get access to 10+ additional exclusive ProTips and comprehensive analysis with an InvestingPro subscription.
In other recent news, Under Armour, Inc. has seen several notable developments. The company held its annual meeting, where shareholders re-elected the entire board of directors and approved the auditor, ensuring stability in its leadership structure. On the financial front, Under Armour announced that it has satisfied and discharged its 3.25% Senior Notes due in 2026, releasing the company from remaining obligations under the notes. This move could be seen as a step towards strengthening its financial position.
In terms of analyst activity, Stifel reiterated a Buy rating on Under Armour, viewing it as a value opportunity with a price target of $9.00. However, Rothschild Redburn downgraded the stock from Buy to Neutral, adjusting its price target to $6.00, citing a delayed recovery timeline. Williams Trading also lowered its price target to $7.00, while maintaining a Buy rating, due to a longer-than-expected timeline for brand improvements. These mixed analyst ratings reflect differing views on the company’s recovery and brand evolution.
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