Under Armour also bested earnings and revenue estimates
Shares of Under Armour Inc (NYSE:UAA) are 17.6% higher at $7.61 this morning, on track for its best session since October 2018 after the athletics apparel retailer reported a surprise quarterly profit and hiked its fiscal 2025 outlook.
For the second quarter, Under Armour showed adjusted earnings of 1 cent per share on revenue of $1.18 billion, both of which beat analysts estimates, while CEO and founder Kevin Plank lauded the company's "strongest product organization" it has had in years.
On the charts, UAA is trading at a level not seen since a bear gap that followed a c-suite shakeup in mid-March. The equity also bounced back above at its 120-day moving average, which moved in as pressure following that same pullback. Now up 13.9% this quarter, Under Armour stock is still down nearly 14% in 2024.
The security's option pits are exploding following the results, with bears outpacing bulls by a sizable margin. Already today, 12,000 calls and 33,000 puts have exchanged hands -- 82 times the average intraday volume -- with the most activity by far taking place at the September 7.50 put.
According to UAA's Schaeffer's put/call open interest ratio (SOIR), this penchant for bearish bets is nothing new. This is per the security's SOIR of 8.18 that ranks higher than 95% of readings from the past 12 months.
Meanwhile, short sellers are building their positions. Short interest rose 10.5% in the last two reporting periods, and the 25.08 million shares sold short account for 13.3% of the stock's available float.