Under Armour Stock Hits 52-Week Low at $6.17 Amid Challenges

Published 31/03/2025, 15:14
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Under Armour Inc. (NYSE:UAA) shares tumbled to a 52-week low of $6.17, reflecting ongoing hurdles for the sportswear company in a competitive market. According to InvestingPro data, the stock has declined nearly 30% over the past six months, with trading volume averaging 11.9 million shares daily. This latest price point underscores a significant retreat from more favorable valuations over the past year, with the stock experiencing a 1-year decline of 15.6%. While the company maintains strong liquidity with a current ratio of 2.01, recent financial data shows challenges in profitability. However, analysts project a return to profitability this fiscal year, suggesting potential for recovery. The 52-week low serves as a critical juncture for Under Armour (NYSE:UA), as stakeholders consider the company’s potential for recovery and long-term growth amidst a landscape of uncertainty.Get deeper insights into UAA’s valuation and 8 additional key ProTips with a InvestingPro subscription, including exclusive access to comprehensive Pro Research Reports covering 1,400+ top stocks.

In other recent news, Under Armour’s third-quarter earnings report revealed an earnings per share (EPS) of $0.08, surpassing the consensus estimate of $0.04, with revenue reaching $1.40 billion, exceeding expectations by $62 million. Despite this, Citi analyst Paul Lejuez adjusted Under Armour’s price target to $8.00 from $12.00, maintaining a Neutral rating, citing increased selling, general, and administrative expenses (SG&A) and uncertainty in North American growth. UBS analyst Jay Sole maintained a Buy rating with a revised price target of $15.00, expressing optimism about the company’s transformation initiatives and cost management strategies. CFRA analyst Zachary Warring raised the price target to $5.00 from $4.00 but maintained a Sell rating, reflecting skepticism about Under Armour’s valuation compared to its peers. The company’s gross margin improved by 240 basis points to 47.5%, attributed to reduced discounting and favorable foreign exchange rates. Under Armour’s management has emphasized the need for increased marketing investments, projecting a rise in SG&A expenses despite an anticipated sales decline. Analysts suggest that while Under Armour is making strategic shifts, the visibility into future performance remains low, particularly in North America. UBS’s and Citi’s analyses indicate potential growth and challenges ahead, with differing perspectives on Under Armour’s market position.

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