An unwinding of bearish sentiment could add more pressure to UAA
Under Armour Inc (NYSE:UAA) shares are plunging, last seen down 18.5% to trade at $4.94. The sportswear company reported an adjusted first-quarter loss of 4 cents on $1.17 billion in revenue, both of which whiffed on estimates. The retailer warned that cost pressures tied to the Middle East conflict and additional marketing investments could weigh on profit for fiscal 2027.
Following the dismal report, UAA fell to a four-month low, and is now hovering near the $5 level. Today's sharp selloff has widened the stock's year-over-year deficit to 20% and breached the year-to-date breakeven level.
Analysts remain cautious, with 21 of the 26 covering firms on the fence with a 'hold' rating. Considering the average consensus 12-month price target of $7.75 is now a 56.7% premium from its current perch, a round of overdue bear notes could weigh on the equity.
On the options front, more than 5,307 calls and 1.245 puts have already changed hands today, 17 times the average daily pace. The most popular call by far is the July 6 call, with new positions opening at the October 7 call.