Under Armour Shares Fall After CEO Departure
2022.05.20 00:01
By Liz Moyer
Investing.com — Under Armour Inc (NYSE:UAA) shares fell nearly 16% in trading on Thursday, though inched up during the after-market, after a downgrade by Morgan Stanley and the departure of its chief executive.
Morgan Stanley downgraded the shares to equal weight from overweight, with an $11 price target. The stock closed at $9.28.
The athletic apparel maker said on Wednesday that CEO Patrik Frisk was leaving after two years effective June 1. Chief Operating Officer Colin Browne will take the helm from Frisk as interim CEO until a permanent successor is found.
Frisk joined Under Armour (NYSE:UA) in 2017 and became CEO in January 2020. He’ll stay as an advisor until Sept. 1, but he was supposed to lead a turnaround. Under Armour reported a net loss for its most recent quarter, affected by supply chain challenges. That prompted a wave of price target cuts by analysts.
