Under Armour UA Stock Price, News & Info The Motley Fool

It’s true that Class A shares carry one vote, but those votes are essentially meaningless. Ticker-wise, shareholders all got one share of UA.C for each share of UA they owned, and the UA stock price fell by roughly 50% due to the effective doubling of the number of Under Armour shares on the market. “The intended purpose of the dual-class shares is to separate the control from the ownership of the company,” says K C Ma, professor of finance at Stetson University. “The dual-class share structure is an obvious defense for takeover bids, hostile or not, from inside or not.” After all, both Class A and Class C shares had already been trading publicly for months, under their old symbols UA and UA.C., respectively. But when they changed to UAA and UA, the company gave no stated reason for the change.

• Between 2008 and 2016, the firm’s North American sales increased to $4 billion from $700 million and it passed narrow-moat Adidas as the region’s second-largest athletic apparel brand (after wide-moat Nike).
• A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.
• We are proud to stand with Ukraine against Russia’s attack on their democracy and will do what we can as a global company where standing for equality matters.
• More value-oriented stocks tend to represent financial services, utilities, and energy stocks.

Consumers of its performance-based clothing and shoes include professional and amateur athletes, sponsored college and professional teams, and people with active lifestyles. The company sells merchandise through direct-to-consumer, including e-commerce and more than 400 combined factory house and brand house stores, and wholesale channels. Under Armour also operates a digital fitness app called MapMyFitness. It’s understandable why Plank would want to issue two share classes. The main distinction between UA and UAA shares comes down to voting rights. UA stock, formerly trading under the UA.C symbol, stands for Class C shares, with no voting rights.

UNDER ARMOUR ANNOUNCES FIRST QUARTER FISCAL 2024 EARNINGS CONFERENCE CALL DATE

This leading sportswear brand deserves to sell at a higher valuation. Despite a relatively strong quarter, the sportswear brand is not out of the woods yet. Our Board of Directors has created corporate guidelines to provide structure to how we operate and conduct business. Our Board of Directors, corporate guidelines and structure to how we operate and conduct business.

The 37 rating InvestorsObserver gives to Under Armour Inc Class C (UA) stock puts it near the bottom of the Apparel Manufacturing industry. In addition to scoring higher than 27 percent of stocks in the Apparel Manufacturing industry, UA’s 37 overall rating means the stock scores better than 37 percent of all stocks. Like the rest of the world, we are shocked and saddened candlesticker by Russia’s unprovoked attack on Ukraine. We are partnering with humanitarian groups to provide what is needed for those displaced and have also stopped all shipments into our sales channels in Russia. We are proud to stand with Ukraine against Russia’s attack on their democracy and will do what we can as a global company where standing for equality matters.

Under Armour, Inc., together with its subsidiaries, develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth. The company provides its apparel in compression, fitted, and loose fit types. It also offers footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications.

What’s Happening With Under Armour Inc Class C Stock Today?

Plank’s massive ownership stake translates to an ability to cast about 65% of all votes, giving him total control. Adding more confusion, another ticker change occurred just eight months later. The two classes of Under Armour stock now trade under the ticker symbols UA and UAA. Dividend yield allows investors, particularly those interested in dividend-paying stocks,
to compare the relationship between a stock’s price and how it rewards stockholders through dividends.

Before you go ringing your broker or calling your congressman, it should be said that Kevin Plank is no corporate tyrant. He is hardly alone in his decision to consolidate voting power; Alphabet ( GOOG, GOOGL), Facebook ( FB) and even Berkshire Hathaway ( BRK/A, BRK/B) all have similar dual-share structures. A cynic, however, might say the ticker change was done to encourage more people to buy the UA nonvoting shares, at least at first. Founders and other insiders often use dual-class share structures to allow a small circle of early employees to exert effective control by owning smaller numbers of shares.

Trending Stocks

The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price. We view Under Armour as lacking a moat, given its failure to build a competitive advantage over other athletic apparel firms. Between 2008 and 2016, the firm’s North American sales increased to $4 billion from $700 million and it passed narrow-moat https://1investing.in/ Adidas as the region’s second-largest athletic apparel brand (after wide-moat Nike). However, Under Armour’s North America sales are little changed over the past seven years as it has been challenged by major competitors like wide-moat Nike and new entrants alike. When it comes to which share class new investors should buy, there are differing opinions.

It’s true that Class A shares carry one vote, but if this article does anything it hopefully hammered home the fact that those votes are essentially meaningless. “These shares represent a majority of votes and render the voting rights of the A shares moot,” says Paul Bolster, a professor of finance at the D’Amore-McKim School of Business at Northeastern University in Boston. For tax purposes, the cost basis was re-allocated roughly evenly between the two shares, meaning shareholders couldn’t sell UA for a 50 percent loss and take a tax write-off (nice thinking, though). Adding more confusion to the situation, the two tickers just changed again in early December. When it comes to which class of stock investors should buy, there are differing opinions.

Company Profile UA

For tax purposes, the cost basis was re-allocated roughly evenly between the two shares, meaning shareholders couldn’t sell UA for a 50% loss and take a tax write-off (nice thinking, though). That’s because founder and CEO Kevin Plank owns tens of millions of Class B shares, which aren’t traded publicly and confer a disproportionate number of votes per share to him. At the end of the day though, even public shareholders of UAA stock will have no real power in determining the direction of the company. A company spokeswoman says the change was made because “the Class C stock is the main stock that we will use going forward and, therefore, we wanted to align our traditional ticker with the Class C shares.”

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. When you think about it that way, UAA shares — Class A stock, with one vote per share — is a moot point; no one can ever acquire enough to become a majority stakeholder unless Plank voluntarily cedes his controlling stake. For additional information regarding our Class C nonvoting common stock, please refer to IRS Forms & Stock Documents on this page. Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated.

It’s understandable why Plank would want to issue two publicly traded classes of stock. One good question, however, is why the company decided to change its ticker symbol after the Class C shares were already issued. Another small difference between UA stock and UAA stock results from this discrepancy in voting power. Because Class A shares actually allow shareholders to vote on governance issues, UAA stock will typically trade at a premium to UA stock, which doesn’t have voting rights. Under Armour develops, markets, and distributes athletic apparel, footwear, and accessories in North America, Asia-Pacific, Europe, and other regions.

Still, that cynical view makes little sense in light of Plank’s power to vote 65 percent of shares, so cosmetics could be the motivating factor. It’s unclear, really, but as long as investors know the difference, the ticker itself doesn’t much matter. Despite this, Class A shares have, ever since Class C shares were first issued in the Under Armour stock split, traded at a major premium to their nonvoting cousins. Ticker-wise, shareholders all got one share of UA.C for each share of UA they owned, and the UA stock price fell by roughly 50 percent due to the effective doubling of the number of Under Armour shares on the market. Still, that cynical view makes little sense in light of Plank’s power to vote 65% of shares, so cosmetics could be the motivating factor. That is why UAA shareholders — and certainly UA investors — have no real power to exert over the company.

A stock’s beta measures how closely tied its price movements have been to the performance of the overall market. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. These companies are setting themselves up for long-term growth in one of the toughest sectors to compete in today. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. We’d like to share more about how we work and what drives our day-to-day business. Compare
UA’s historical performance
against its industry peers and the overall market.

But if you’d rather have some checks and balances in place, this isn’t so great for corporate governance. Granted, Plank has proven an excellent steward of shareholder value over the years, but there’s never a guarantee that will continue. “This seems like a very high premium to pay for a vote that has little to no value,” Bolster says.

Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes. Data may be intentionally delayed pursuant to supplier requirements. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply. UA’s beta can be found in Trading Information at the top of this page.