The Case for and Against Under Armour, Inc. (UA)

Under Armour, Inc. (UA) is an interesting player in the Consumer Goods space, with a focus on Textile – Apparel Clothing. The stock has been active on the tape, currently trading at $22.13, down from yesterday’s close by -0.18%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Under Armour, Inc. (UA) currently trades with a market capitalization of $-. That value represents a market adjusting for revenues that have been growing by 6.09 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $44.16 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -$0.08 on a per share basis this quarter. Perhaps, that suggests something about why 1.85% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, Under Armour, Inc. recorded a 52-week high of $22.58. It is now trading 0.45% off that level. The stock is trading $16.94 its 50-day moving average by -5.19%. The stock carved out a 52-week low down at $10.36.

In recent action, Under Armour, Inc. (UA) has made a move of +32.83% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.11, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 9.88% with $370.48 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of UA.

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