Williams Trading revised its position on Under Armour (NYSE:UA) Inc. (NYSE:UAA) on Thursday, downgrading the stock from Buy to Hold and lowering the price target to $8 from the previous $11. This decision follows the unexpected announcement of a leadership change within the sportswear company.

Under Armour disclosed that President & CEO Stephanie Linnartz would step down on April 1, 2024. Kevin Plank, the company’s founder and former CEO, is slated to resume the role of President & CEO on the same date.

Dr. Mohamed A. El-Erian will assume the position of non-Executive Chairman of the Board as part of the leadership transition. Consequently, Plank will transition from his role as Executive Chairman but will remain a director.

Linnartz, who assumed the position of President & CEO on February 27, 2023, is departing after just over a year in the role. Her departure was characterized as a mutual decision between her and the Under Armour board, rather than being initiated by Plank.

Under Linnartz’s leadership, the company was undergoing a strategic repositioning of the Under Armour brand in the U.S. market while aiming to bolster its international presence. It was anticipated that North American revenue for fiscal year 2025 might decline as the brand’s repositioning efforts, including new product launches and enhanced allocation and segmentation, began to yield results.

Analysts previously held the view that a gradual approach could benefit Under Armour in the long run, allowing the company to progress steadily. There is optimism among analysts that Plank’s return could rejuvenate the brand, considering his historical influence and energy.

Further insights into Plank’s strategies for Under Armour are expected to be unveiled during the company’s fourth-quarter 2024 earnings call scheduled for May 9, 2024. Until then, market observers will closely monitor the company’s developments.

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