Under Armour: 6 Findings From Under The Hood In Q1

7/18/18

By JP Research, SA

Summary

  • More governance issues at Under Armour.
  • I list six curious findings that surfaced post Q1 review.
  • Valuations remain lofty.
  • Still a prime short candidate.

Of all the stocks I’ve covered over the last year or so, Under Armour (UAA) (NYSE:UA) is by far the most fascinating. This is a stock that checks all the right boxes on an ideal S&P 500 short – poor governance, slowing growth, and overvalued stock. Yet, as of today (12th July), it’s up 56.46% (!), leaving a lot of shorts under water. And there are a LOT of shorts.

In fact, UAA’s short interest (as a % of float) now stands at ~30%. Per GS, short interest has risen ~7 percentage points YTD.

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