NEW YORK (TheStreet) -- Under Armour (UA) shares are up 1.17% at $82.14 in early morning trading on Tuesday after rising 0.37% in after-hours trading last night following the sports apparel manufacturer's announcement that it's initiating a 2-for-1 stock split, creating a new Class C non voting stock.
The new Class C non-voting stock will be issued to all existing Class A and B shareholders through a stock dividend.
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.
The company will also hold a shareholder meeting August 26 to vote on amendments to its charter as it relates to the new class of shares.
Insight from theStreet Research Team:
Researchers at Growth Seeker have a $91 price target on Under Armour's shares. Here is what they had to say about the company:
The stock closed the week mostly unchanged. On Wednesday, the NBA announced that Nike ( NKE) has won the concession for an eight-year on-court and sideline apparel deal beginning in the 2017-2018 season. Financial terms were not announced, though it's rumored that the deal was for approximately $1 billion.
We don't believe UA had real intent to win the very expensive bidding and note we don't see any major change in the landscape, as Nike already dominates the basketball shoe market with nearly 95% market share. As for UA, its star, Stephen Curry -- the NBA's Most Valuable Player - and his team, the Golden State Warriors, are one win away from becoming the league champions in the NBA Finals.
Management has been constant innovators, using technologies in an industry that has often overlooked innovation, and we believe the company continues to make bold moves -- and spend on investments -- to stay on the cutting edge while it builds out its presence in footwear, international markets, clothing for women, direct-to-consumer products and connected-fitness items.
-Bryan Ashenberg, 'Growth Seeker Weekly Summary', 6/15/2015
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: