Under Armour stock plunged in early May after the company reported a first-quarter loss.
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Under Armour stock has tumbled in 2022, but director David W. Gibbs bought shares of the apparel and footwear maker on the open market.
Under Armour’s (ticker: UA) nonvoting Class C shares have lost more than 4% of their market value year to date, while the S&P 500 index has slipped 18%. Shares plunged in early May after the company reported a loss for the quarter ended on March 31; analysts had expected a profit. Guidance disappointed, as well.
Shares continued to languish until CEO Patrik Frisk announced after the market close on May 18 that he was stepping down. On May 20, the shares traded down to $8.09, their lowest intraday price in nearly two years. The Class A shares of Under Armour, which trade under the ticker UAA, also slipped to a near two-year intraday low in late May.
On May 27 and May 31, Gibbs paid a total of $475,000 for 50,000 nonvoting shares, at an average price of $9.50 each, according to a filing with the Securities and Exchange Commission. He made the purchases through a trust that he controls. Gibbs also owns 34,093 nonvoting shares in a personal account. He is the chief executive of Yum! Brands (YUM) , parent company of KFC and Pizza Hut, and joined the Under Armour board in September 2021.
Yum! Brands didn’t make Gibbs available for comment.
On May 19, Morgan Stanley analyst Kimberly Greenberger downgraded Under Armour’s voting shares to Equal Weight from Overweight and trimmed her target price to $11 from $14.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at [email protected] and follow @BarronsEdLin.
