Under Armour Inc. (NYSE:UA) Relative Strength Index (RSI) is 43.65, with weekly volatility at 7.67% and ATR at 0.61. The UA stock’s 52-week price range has touched low of $6.37 and a $24.55 high. Intraday shares traded counted 12.66 million, which was -144.46% lower than its 30-day average trading volume of 5.18M. Its shares traded lower over the last trading session, losing -3.40% on 05/21/20. The shares fell to a low of $6.91 before closing at $7.44. UA’s previous close was $7.70 while the outstanding shares total 451.83M. The firm has a 12-month trailing P/E ratio of 37.93, and a growth ratio of 1.74.
Investors have identified the Apparel Manufacturing company Under Armour Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $3.48 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Under Armour Inc. (UA) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For UA, the company has in raw cash 959.32 million on their books with 729.76 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 2868007000 million total, with 1691502000 million as their total liabilities.
UA were able to record -398.21 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 172.16 million. In cash movements, the company had a total of -366.71 million as operating cash flow.
Potential earnings growth for Under Armour Inc. (UA)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Under Armour Inc. recorded a total of 930.24 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -29.51% coming in sequential stages and their sales for the third quarter reducing by -54.93%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 499.26 million trying to sell their products during the last quarter, with the result yielding a gross income of 430.98 million. This allows shareholders to hold on to 451.83M with the revenue now reading -1.30 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter.
Having a look at the company’s valuation, the company is expected to record 0.34 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on UA sounds very interesting.
Is the stock of UA attractive?
In related news, Chief Product Officer, Eskridge Kevin sold 19,348 shares of the company’s stock in a transaction that recorded on Nov 26. The sale was performed at an average price of 15.84, for a total value of 306,561. As the sale deal closes, the Chief Product Officer, Eskridge Kevin now sold 56,500 shares of the company’s stock, valued at 999,462. In the last 6 months, insiders have changed their ownership in shares of company stock by 15.29%.