Under Armour Solid Despite Recent Hiccups

The departure of two top executives at Under Armour (UA) - Get Report sent the stock down 6% in midday trading Wednesday, worrying some analysts.

"I don't like to see these things happen," said Action Alerts Plus Portfolio manager Jim Cramer of the departure of the company's chief merchandising officer, Henry Stafford, and its chief digital officer, Robin Thurston. However, "Long term, I really like Under Armour."

Brean Capital analyst Eric Tracy downgraded the stock to Hold from Buy following the news, while Piper Jaffray analyst Erinn Murphy reiterated her Neutral rating, writing that she was concerned about Under Armour's ability to "attract and retain top talent."

"While we acknowledge high growth companies like UA tend to have higher employee turnover, the departure of leaders like Mr. Stafford and Mr. Thurston layers in (additional) executional risk, in our view, with Mr. Stafford's departure likely particularly impactful given his tenure (six years at UA) and leadership on product segmentation," Tracy wrote.

Although Cramer is bullish on the stock, he still has some concerns about recent events, such as the recent bankruptcy filing of Sports Authority, which sells Under Armour products.

"I get worried there's a bankruptcy where some of their goods was," Cramer added. "I get worried about these layoffs. I think what they're saying is, while it's a dynamic company-they just signed Bryce Harper a long-term contract-these are worrisome departures. You don't see worrisome departures from Nike. So I understand why it's pausing because it is a very multiple stock."

Shares currently trade around $40, which is still too high for Cramer to buy.

"It could go to the 30s, because it's very, very expensive and when a company has turnover like that, I'm willing to say let's wait until it settles," he added. "It hasn't settled yet."