Under Armour Stock Picks Up Rare Bull Note

The majority of analysts are still skeptical of UAA

Managing Editor
Jul 25, 2019 at 9:49 AM
facebook twitter linkedin


The shares of Under Armour Inc (NYSE:UAA) are up 0.5% to trade at $27.51 today, after Telsey Advisory Group upped its price target on the athletic apparel name to $25 from $22. Now, Under Armour stock is heading toward its third straight win. The shares have carved out a channel of higher highs and lows all year, with recent pullbacks finding support at their 30-day moving average. Year-to-date, UAA is up 55%, and just yesterday nabbed a two-year high of $27.72.

More bull notes could certainly keep the wind at the equity's back. Of the 21 brokerages covering the security, 14 rate it a "hold" or worse, while its consensus 12-month price target of $23.27 is a 15% discount to last night's closing perch at $27.34. 

The equity is ripe for a short squeeze, too. Short interest increased by 20% in the most recent reporting period to 38.65 million shares, the most since October. This accounts for  a hefty 20.7% of UAA's total available float, and eight days' worth of pent-up buying power, at the stock's average pace of trading.

In the options pits, there is a distinct bearish bias that could also fuel upside for UAA. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day put/call volume ratio of 1.22 ranks in the elevated 76th annual percentile, meaning puts have been bought to open over calls at a quicker-than-usual clip. A shift in sentiment could create tailwinds for the stock.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

 


 


 
Special Offers from Schaeffer's Trading Partners