There are a couple key trendlines of pressure at play
Under Armour Inc (NYSE:UAA) will announce its latest quarterly report before the open on Tuesday, May 13. The company is expected to post losses of nine cents per share on revenue of $1.16 billion, both of which are significantly lower than the same quarter last year.
At last glance, UAA was up 4.5% at $5.97. The $6 level has kept a tight lid on gains since the stock's April 3 bear gap, along with long-term pressure from the 40-day moving average. Year to date, the equity is down 27.9%.
The majority of analysts are bearish ahead of the event, with 20 of the 23 in coverage carrying a "hold" or worse rating. Yesterday, Telsey Advisory slashed its price target to $7 from $10, and the analyst consensus sits at $7.67.
Over the last two years, Under Armour stock only closed three post-earnings sessions lower, though the most recent was this past February. The stock has averaged an 8% next-day swing, regardless of direction, which is lower than the 12.5% move the options pits are pricing in this time around.