Why Under Armour (UAA) Stock Is Falling Today

Recent Developments for Under Armour

Under Armour (NYSE:UAA) experienced a 7.4% decline in its stock price during morning trading after Citi shifted its rating from Neutral to Sell. The downgrade was attributed to mounting challenges in the North American market, where the company is facing intensified competition, sluggish direct-to-consumer activity, and a greater need for marketing expenditure.

This change in outlook followed closely on the heels of Under Armour raising its annual forecast due to unexpectedly strong third-quarter results, which had previously boosted the stock. However, Citi’s new assessment indicated that the risks now outweigh the potential rewards, dampening the recent wave of optimism.

Market reactions to news can often be exaggerated, and significant drops sometimes create attractive entry points for investors seeking quality stocks. Could this be a buying opportunity for Under Armour?

Market Sentiment and Stock Performance

Under Armour’s stock has demonstrated considerable volatility, with 17 instances of price swings exceeding 5% over the past year. Today’s decline suggests that investors view the latest news as important, though not transformative for the company’s overall outlook.

Just four days ago, the stock surged by 13.2% after Under Armour reported fourth-quarter earnings that surpassed analyst expectations and raised its full-year profit guidance. The company delivered an unexpected adjusted profit of $0.09 per share, beating forecasts that had predicted a loss. While revenue dropped 5.2% year-over-year to $1.33 billion, it still outperformed market estimates. Looking ahead, Under Armour increased its projected adjusted earnings per share for the year to $0.11 at the midpoint, offering a positive signal to investors despite ongoing sales challenges.

Since the start of the year, Under Armour’s share price has climbed 37.5%, currently trading at $7.28—close to its 52-week high of $7.86 reached in February 2026. However, a $1,000 investment in Under Armour five years ago would now be valued at just $324.05.

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