What Happened?
Shares of athletic apparel company Under Armour (NYSE: UAA) jumped 4.7% in the afternoon session after investment firm Guggenheim initiated coverage on the company with a "Buy" rating and a $6 price target.
This move signaled a new vote of confidence in the athletic apparel maker. Initiating coverage means an analyst or firm has started to formally research and rate a stock, which can bring new attention from investors. Guggenheim's positive outlook came even as the firm noted that the broader retail sector was still perceived by some as “structurally sick,” making their bullish stance on Under Armour more notable.
After the initial pop the shares cooled down to $4.59, up 4.9% from previous close.
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What Is The Market Telling Us
Under Armour’s shares are somewhat volatile and have had 13 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 8 days ago when the stock gained 2.3% on the news that investment firm Guggenheim initiated coverage on the sports apparel company with a 'Buy' rating and a $6 price target. The new coverage from Guggenheim analyst Simeon Siegel signaled a positive view of the company's potential market performance. The initiation with a 'Buy' rating often draws investor attention as it suggests confidence in the company's future prospects and strategy.
Under Armour is down 43.4% since the beginning of the year, and at $4.59 per share, it is trading 47.1% below its 52-week high of $8.66 from January 2025. Investors who bought $1,000 worth of Under Armour’s shares 5 years ago would now be looking at an investment worth $263.96.
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