What Happened?
Shares of athletic apparel company Under Armour (NYSE: UAA) jumped 6.2% in the afternoon session after the disclosure of a significant stock purchase by a board member, signaling strong insider confidence. According to SEC filings, board member Dawn N. Fitzpatrick purchased 100,000 shares for a total of $493,000, increasing her ownership by nearly 300%. Such a substantial investment by an insider is often seen by investors as a strong vote of confidence in the company's future, suggesting that leadership may believe the stock is undervalued. Bolstering this sentiment, the company's Chief Accounting Officer, Eric J. Aumen, also made a smaller purchase of company stock. These insider buys are particularly noteworthy as they come while the stock is trading near its 52-week low, signaling that management may view the current share price as an attractive entry point.
Is now the time to buy Under Armour? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Under Armour’s shares are very volatile and have had 22 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 3.1% on the news that the latest Consumer Price Index (CPI) report showed inflation holding steady, bolstering investor optimism for a potential interest rate cut by the Federal Reserve. The data, which revealed that inflation remained at 2.7% for the year ending in July, was seen as a positive sign by investors. This stability increases the likelihood that the Federal Reserve might lower interest rates at its upcoming September meeting. Lower interest rates can stimulate the economy by making borrowing cheaper for both consumers and businesses, which often translates into higher consumer spending. This is particularly beneficial for the Consumer Discretionary sector, which includes companies selling non-essential goods and services like apparel, travel, and electronics.
Under Armour is down 35.6% since the beginning of the year, and at $5.22 per share, it is trading 53.1% below its 52-week high of $11.13 from November 2024. Investors who bought $1,000 worth of Under Armour’s shares 5 years ago would now be looking at an investment worth $498.09.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
