Under Armour (UA) Declines on VP Departure; Buying Op or Opt Out?
Article
Related Press Releases (1)
Related Articles (2)
Related SEC Filings (1)
Stock Quotes (1)
Comments (0)
Tweet
Send to a Friend
Get Alerts UA Hot Sheet
Price: $62.51 +1.82%
Rating Summary:
11 Buy, 17 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
11 Buy, 17 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade UA Now!
Yesterday Under Armour, Inc. (NYSE: UA) announced that Gene McCarthy is resigning as Senior Vice President, Footwear, effective February 22, 2013. The company's COO will assume responsibility of Footwear and continue to oversee the company's Operations division. While McCarthy's departure is not seen as material, it does raise questions.
"While UA has had no problem attracting talent, Mr. McCarthy's departure speaks to the difficulty the company has had in retaining senior level management," said Janney Capital analyst Eric Tracy. He believes this speaks to the challenges of integrating into a very close knit/high growth culture.
Janney expects Under Armour revenue growth of 22 percent, which will be supported largely by the 35 percent growth in Footwear. Footwear is in Tracy's view the "growth torch", so having the right talent in place is critical.
"We have been looking for a pullback in the shares to get more constructive with our rating, however, this announcement layers in some incremental uncertainty to the thesis," said Tracy.
He said he would be an aggressive buyer on a deeper pullback or if FY13 visibility improves.
Janney has a Neutral rating on Under Armour.
For an analyst ratings summary and ratings history on Under Armour, Inc. (NYSE: UA) click here. For more ratings news on Under Armour, Inc. click here.
Shares of Under Armour, Inc. closed at $45.86 yesterday, with a 52 week range of $44.07-$107.86.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
"While UA has had no problem attracting talent, Mr. McCarthy's departure speaks to the difficulty the company has had in retaining senior level management," said Janney Capital analyst Eric Tracy. He believes this speaks to the challenges of integrating into a very close knit/high growth culture.
Janney expects Under Armour revenue growth of 22 percent, which will be supported largely by the 35 percent growth in Footwear. Footwear is in Tracy's view the "growth torch", so having the right talent in place is critical.
"We have been looking for a pullback in the shares to get more constructive with our rating, however, this announcement layers in some incremental uncertainty to the thesis," said Tracy.
He said he would be an aggressive buyer on a deeper pullback or if FY13 visibility improves.
Janney has a Neutral rating on Under Armour.
For an analyst ratings summary and ratings history on Under Armour, Inc. (NYSE: UA) click here. For more ratings news on Under Armour, Inc. click here.
Shares of Under Armour, Inc. closed at $45.86 yesterday, with a 52 week range of $44.07-$107.86.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Morgan Stanley Says Tesla (TSLA) 'Top Pick in U.S. Autos'
- UBS Survey Shows Signs of Strength for Gilead's (GILD) TAF
- Pier 1 Imports (PIR) Sets Sights on Growing Ecommerce
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, Management Changes
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
