Will Under Armour (UA) Stock Be Helped by Bryce Harper Deal?
NEW YORK (TheStreet) -- Shares of Under Armour (UA) - Get Report are dropping 2.15% to $42.80 on Tuesday afternoon as Washington Nationals' outfielder Bryce Harper has signed a 10-year extension deal that is thought to be the biggest endorsement in history for a baseball player, a source told ESPN.
Under Armour said Harper signed a multi-year extension agreement today but said the terms, such as the length and compensation, would not be revealed.
The brand will begin selling Harper's first signature cleats the Under Armour Harper One in July, ESPN said. He has been an endorser for the company for five years.
Last year, Harper, now 23, became the youngest player to unanimously win an MVP award. By keeping Harper, the company continues its hold onto recent MVP endorsers, ESPN noted.
In addition to Harper, the company's endorsers include NFL MVP Cam Newton of the Carolina Panthers, NHL MVP Montreal goalie Carey Price, New England Patriots quarterback Tom Brady and Olympic swimmer Michael Phelps, ESPN added.
Under Armour's On Balance Volume (OBV) line has remained on the defensive, with trading in the stock heavier on days when Under Armour has closed lower, RealMoney's Bruce Kamich wrote in an article earlier today.
With prices now below $43 per share, further declines to $35 are still possible, Kamich added.
Separately, TheStreet Ratings Team has a Buy with a ratings score of B on the stock.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, compelling growth in net income, good cash flow from operations and solid stock price performance.
The team believes its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: UA
