$UA: Institutions Add to Stakes as Stock Slides — $434M Settlement Still Shadows

Court: D. Maryland

Case: 1:17-cv-00388

Under Armour UA, UAA has caught fresh institutional attention, with Strs Ohio acquiring 189,707 shares worth $1.13M in Q1. Other funds, including American Century and Bank of America, also boosted positions, bringing institutional ownership to 36.3%. Insider buying has added momentum, with directors Robert John Sweeney and Dawn Fitzpatrick purchasing over 200,000 shares in recent weeks. Yet despite this renewed interest, the stock remains near a 52-week low of $4.62, reflecting ongoing operational pressures and the weight of a $434M investor settlement.

• Strs Ohio stake: 189,707 shares valued at $1.13M.
• Q1 earnings: EPS of $0.02, in line with estimates; revenue of $1.13B missed the $1.36B consensus.
• Stock performance: Down over 70% YoY; trades at $4.70 with a $2.01B market cap.
• Insider activity: Directors purchased over $991,000 in shares recently.
• Legal overhang: $434M settlement with investors over misstatements on growth.

Timeline Overview

• Apr 21, 2016 — UA posts Q1 earnings with its 26th straight quarter of 20%+ revenue growth.
• Jan 31, 2017 — Weak Q4 earnings and CFO resignation; shares plunge 26%.
• Feb 3, 2017 — Shareholders sue, alleging misleading guidance and misstatements.
• Sept 2025 — Under Armour agrees to a $434M settlement with investors.

Allegations Include

• Overstating ability to sustain 20%+ revenue growth.
• Concealing risks tied to excess inventory and retailer bankruptcies.
• Misleading investors about true demand and business prospects.

Investor Update

The $434M settlement resolves years of litigation but highlights Under Armour’s prior governance missteps. While institutional inflows and insider buying suggest confidence in a rebound, weak revenue growth and a fragile brand turnaround remain risks for shareholders.

You can check more information about it HERE.