Under Armour (UA) Sees Gains While IndyMac Bancorp (IMB) Drops Before S&P Midcap Changes
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More News related to UA
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After tomorrow's closing bell (May 15, 2008), Under Armour (NYSE: UA) will be added to the S&P Midcap 400 and IndyMac Bancorp (NYSE: IMB) will be removed. This move will most likely be a positive for the added company and negative for the removed company (because of portfolio re-balancing that will be done by money/fund managers).
However, since the news has been announced today, shares of UA have already jumped 5.5% today and shares of IMB has dipped over 12%.
IndyMac currently has a market cap of approx. $165 million and a share price hovering around $2, which is a 52-wk low. Shares have tumbled down from a 52-wk high of $37.50. The difference equates to an approximate market cap loss of 92%..WOW!
Under Armour has a current market cap $1.68 billion and a share price around $35 (including today's gain). However, shares have fallen from $62.25 on Oct. 31, 2007, a drop of approx. 43% and 20% year-to-date. The company has reported better than expected earnings the past two quarters and reaffirmed revenue outlook, but investor may still be skeptical as the economy borders on recession.
Recently, Citi downgraded Under Armour from Buy to Hold with a $38 price target.
The firm said, "We expect the stock to trade in a tight range change over the next 6 - 12 mos. due to 3 key reasons: 1) Increased Estimate change general merchandise pressure from higher markdowns; 2) Potential earnings risk as guidance remains back half-loaded, despite continued higher spending; and 3) We think the stock is fairly valued at current levels."[SM]
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