KGI Securities Places Neutral Rating on Under Armour Stock

KGI Securities has initiated coverage of Under Armour with a Neutral recommendation. Despite a slight increase in institutional ownership, investor sentiment remains cautious, indicating potential price stabilization.

Date: 08-03-2025

AI Rating: 6

Investor Sentiment Overview
On March 7, 2025, KGI Securities began coverage of Under Armour, categorizing it with a Neutral rating. This indicates that KGI does not foresee any substantial growth or decline in the company's stock price in the near term.

Institutional Ownership
The report highlights an increase in the number of funds or institutions holding positions in Under Armour, now totaling 683, which marks a 1.79% uptick over the last quarter. The average portfolio weight for these funds is noted at 0.06%, showing a significant increase of 100.53%. Similarly, total shares owned by institutions have risen by 3.41% in the last three months, reaching 219,047K shares.

This institutional interest indicates a slight positive trajectory for the stock, but the Neutral rating implies that while interest is growing, the outlook is not particularly bullish.

Key Shareholders' Activity
Several major shareholders have also increased their stakes in Under Armour. For instance, Fidelity Blue Chip Growth Fund has significantly raised its ownership from 945K to 12,290K shares, which is an impressive increase of 92.31%. Another fund, Alyeska Investment Group, increased its holdings from 6,287K to 9,790K shares, with a 35.78% boost. Both of these instances suggest accumulating confidence among significant investors in the company's potential, albeit accompanied by a cautious tone due to the Neutral rating.

Overall Implications for Stock Prices
The increased institutional ownership might offer some stability and could lead to price support, but without a positive rating, this accumulation must be viewed cautiously. Investors may see this as a sign of a hold strategy, watching closely for future developments that could lead to a change in sentiment.

Stocks: UAA