Under Armour Inc.
), a leading designer, marketer, and distributor of athletic
footwear, apparel and accessories for a wide variety of sports and
fitness activities, recently announced a stock split program for
the first time since it started trading in November 2005.
The intention to split its common stock has been approved by the
company's board of directors. Under the program, shareholders
owning one share of UA at the close of business on June 25,
2012, will receive two shares of UA common stock on July 9,
The company said the stock split will be made in the form of a
dividend of one share of Class A common stock for each existing
share outstanding and similarly for Class B shares.
Management believes that the stock split will expand the
company's shareholder base, increase market liquidity and enhance
shareholder value. Management remains upbeat about its strategy of
returning value to its shareholders in the long term.
Under Armour ended the first quarter of 2012 with cash and cash
equivalents of $107.1 million, total long-term debt of $75.8
million and shareholders' equity of $674.1 million. The company had
no borrowings under its revolving credit facility of $300 million
at the end of the quarter and incurred $8.8 million in capital
We believe that Under Armour has a sturdy balance sheet with an
excellent management team carving out the long-term growth
opportunities across all its categories. Under Armour is a well
established brand that we expect will continue to benefit from
shifting trends toward performance-based products within the
industry over the long term.
The company, which competes with
Columbia Sportswear Company
), offers a wide variety of products including sporting goods and
lifestyle products and engages in the design, development,
marketing and distribution of a range of apparel and accessories
utilizing various synthetic microfiber fabrications in the United
States and internationally.
The quantitative Zacks #3 Rank (short-term Hold rating) for the
company's shares indicates that the shares will trade in line with
the peer group over the next 1-3 months.
COLUMBIA SPORTS (COLM): Free Stock Analysis
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UNDER ARMOUR-A (UA): Free Stock Analysis Report
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