Is it Time for Under Armour to Put Itself up for Sale?
Under Armour's (UA) - Get Report shares tanked after posting disappointing fourth-quarter financial results. Investors took the opportunity to sell shares, so maybe it's time for the company to consider putting itself up for sale.
Under Armour's high multiple versus future earnings makes it an unattractive choice for private equity firms, but serial acquirers such as PVH (PVH) - Get Report and VF Corp (VFC) - Get Report could be a perfect fit for Under Armour.
CEO Kevin Plank is one of the major hurdles standing in the way of any potential sale. Plank built Under Armour into a $5 billion company and is known for his competitive nature given his sports background. Plank has not given any indication that he wants to sell.
According to TheStreet's Chris Versace, Under Armour could be sold for about $40 a share, that's a premium of more than double the stock's closing price Tuesday.
With the stock suffering as much as it has in recent quarters and Wall Street slashing its expectations for the company, a lifeline that size may be enough to sway a reluctant seller like Plank.
