The S&P 500’s top losers on January 16 were:
- Under Armour Inc Class C (UA) fell 11.7%.
- Under Armour (UAA) fell 8.7%.
- Viacom Inc Cl B (VIAB) fell 7.1%.
- Alliance Data Systems (ADS) fell 6.6%.
- CF Industries Holdings (CF) fell 6.5%.
Under Armour, which is an American company that manufactures footwear, sports, and casual apparel, was the S&P 500’s top loser on Tuesday. After declining last week, Under Armour carried the weakness forward to this week by falling to one-month low price levels on Tuesday.
The selling pressure in Under Armour increased this week amid analysts’ downgrade. Last week, Sam Poser, an analyst at Susquehanna, downgraded Under Armour from “neutral” to “negative.” He commented that the pressure from its North American market would “deteriorate” the brand. The weakness increased on Tuesday following a client note by analyst Laurent Vasilescu. He downgraded Under Armour’s EBITDA and commented that the company might have to raise capital in the future. He cut the target price to $8 and expects the 2018 revenue to fall 1%. In contrast, Wall Street analysts expected 4.6% revenue growth.
On January 16, Under Armour fell 11.74% to $12.48—the lowest close since December 14, 2017. Under Armour is part of the S&P 500 Consumer Discretionary sector, which fell 0.69% on Tuesday.