NEW YORK (TheStreet) -- Under Armour (UA) shares are climbing 0.37% to $81.49 in after-hours trading on Monday after the sports apparel company announced the creation of a new special class of shares that lack voting power.
The new Class C non-voting stock will be issued to all existing Class A and B shareholders through a stock dividend which will have the same effect as a two-for-one stock split.
Each Class A and B shareholders will receive one share of the new Class C stock.
The Baltimore, MD-based company will send an application to the New York Stock Exchange for a new listing for the new stock which will trade under a different symbol than Under Armour's current UA symbol.
TheStreet Ratings team rates UNDER ARMOUR INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNDER ARMOUR INC (UA) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: