What Happened?
Shares of athletic apparel company Under Armour (NYSE:UAA) fell 7.4% in the morning session after Citi downgraded the stock to Sell from Neutral, citing concerns that the company's turnaround in North America faced increasing pressure.
The analyst pointed to several challenges, including a highly competitive environment, weak direct-to-consumer traffic, and the need for heavier marketing investment. This downgrade came shortly after Under Armour had lifted its full-year outlook following stronger-than-expected third-quarter results, which had previously sent the shares higher. The new rating suggested that risks were skewed to the downside, reversing the recent positive sentiment.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Under Armour? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Under Armour’s shares are quite volatile and have had 17 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 13.2% on the news that the company reported fourth-quarter results that beat Wall Street's expectations and raised its full-year profit forecast. The athletic apparel maker posted a surprise adjusted profit of $0.09 per share, while analysts had forecast a loss. Although revenue fell 5.2% year on year to $1.33 billion, it still surpassed market expectations. Looking ahead, Under Armour provided a brighter outlook, raising its full-year adjusted earnings per share guidance to $0.11 at the midpoint. This marked a significant increase and provided investors with a key point of optimism, even as the company navigated a challenging sales environment.
Under Armour is up 37.5% since the beginning of the year, and at $7.28 per share, it is trading close to its 52-week high of $7.86 from February 2026. Investors who bought $1,000 worth of Under Armour’s shares 5 years ago would now be looking at an investment worth $324.05.
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