Aug. 16, 2025 at 12:39 PM ET6 min read

Key Highlights and Market Insights

Tim BohenAvatar
Written by Tim Bohen Reviewed by Ben Sturgill Fact-checked by Ellis Hobbs

Under Armour Inc.’s stocks have been trading up by 5.49 percent amid enhanced investor confidence in strategic growth plans.

Key Highlights

  • **UBS Slashes Under Armour Price Target Amid Tariff Woes**

Consumer Discretionary industry expert:

Analyst sentiment – negative

Under Armour (UAA) is currently navigating a difficult financial terrain, as reflected by its negative profitability ratios: an EBIT margin of -3.7%, EBITDA margin of -1.7%, and net profit margin of -3.9%. Despite gross margins standing at a robust 47.9%, the company’s revenue trajectory is on a five-year decline of 0.68%, compounded by a three-year contraction of -3.39%. These figures underscore deteriorating bottom-line results, juxtaposed against a previous period of stabilized revenue. The company’s revenues over the last fiscal period amounted to $5.16 billion. Furthermore, shortcomings in management effectiveness, seen in return on equity at a mere 6.16%, juxtaposed with negative ROIC (-5.74%), stress operational inefficiencies. Movements in working capital appear healthy with a current ratio of 2.1 and a manageable total debt-to-equity ratio of 0.69, yet liquidity constraints loom with a cash flow per share of -$0.14.

Technical analysis indicates recent variable price levels for Under Armour. It observes a lack of directional momentum, with recent daily figures showing inconsistency: from August 11-15, opening ranges varied between $4.91 and $5.17 with a closing span from $4.94 to $5.19. A notable ceiling persists around the $5.20 resistance level, presenting potential sell signals due to failed attempts to break higher, indicating market hesitation. Given current volume data, traders might observe consolidation patterns between $4.90 support and $5.05 resistance—in the absence of significant breakout trade volumes—suggesting caution and a possible bearish bias if the stock slides below $4.90 on high volume.

Looking ahead, Under Armour is contending with reduced price targets from reputable firms like UBS and Stifel, attributed to continued tariff impacts and wholesale uncertainties. Recent UBS analysis, suggesting a FY27 fundamental turnaround, conflicts with Stifel’s stance that foregrounds brand resilience. Strained by tariffs impacting expenses and margins, alongside an anticipated weak Q2 report, a verified positive momentum will be delayed despite optimistic buy ratings. Comparatively, Under Armour lags its Apparel & Luxury peers, further diminished by broader Consumer Discretionary benchmarks. With current conditions, expectations are tempered with resistance seen around $7.50 and $6.50, and interim support around $5.00. Overall, caution is exercised with an extended outlook needed to align promising brand value with tangible financial performance improvements.

  • UBS has adjusted its price target for Under Armour from $8 to $7.50, citing ongoing margin pressures and challenges posed by tariffs.
  • Despite the price cut, a buy rating remains intact, with anticipation of a fundamental recovery projected for fiscal 2027.
  • Market analysts express concerns about the near-term sales outlook, with expectations of a weak Q2 performance.
  • Adjustments reflect broader uncertainty in wholesale dynamics and potential margin compressions.

Candlestick Chart

More Breaking News

Weekly Update Aug 11 – Aug 15, 2025: On Saturday, August 16, 2025 Under Armour Inc. stock [NYSE: UAA] is trending up by 5.49%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Under Armour’s recent financial performance paints a complex picture. The company’s revenue for Q1 2025 stood at $1.13 billion, aligning with market expectations but not without challenges. The earnings per share (EPS) guidance for the second quarter indicates a modest range between $0.01 and $0.02. Such conservative projections suggest potential headwinds and underline the cautious stance taken by analysts.

Profitability ratios reflect mixed signals, with the EBIT margin marked at -3.7% and a gross margin of 47.9%. This indicates that while the brand sustains a substantial gap between production costs and revenue, its earnings before interest and tax remain challenged. The lack of a clear profitability trajectory potentially clouds investor sentiment, prompting the strategic reassessment seen with adjusted price targets.

According to key financial ratios, Under Armour’s valuation seems modest with a price-to-sales ratio at 0.42, suggesting an appealing entry point for those anticipating long-term value realization. However, debt levels relative to equity stand at 0.69, which while sustainable, require careful management to prevent future strain. Moreover, its liquidity position as evidenced by a current ratio of 2.1 and quick ratio of 1.1, suggests the company maintains short-term financial resilience.

Conclusion

In conclusion, recent market and financial reports provide a cautiously optimistic outlook for Under Armour. While challenges including tariff-induced margin pressure and broader economic vagaries persist, strategic projections suggest a focus on transformative growth by fiscal 2027. UBS’s revised price target codifies the current caution while keeping faith in the underlying fundamental strengths of the brand. Traders observing Under Armour’s stock should anticipate near-term volatility as forward strategies adapt to the evolving marketplace. As Tim Bohen, lead trainer with StocksToTrade says, “Success in trading is more about cutting losses quickly than finding winners.” Fluctuations may present buying opportunities for those aligned with the brand’s long-term potential and global prowess.

This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.

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