NEW YORK, NY / ACCESSWIRE / January 17, 2017 / Shares of Nike and Under Armour both entered red territory on Tuesday with Under Armour dropping to the bottom of the S&P 500 after receiving a downgrade from bank Macquarie. Shares of Nike briefly hit a new high despite any notable news.

RDI Initiates Coverage on:

NIKE, Inc.
https://rdinvesting.com/news/?ticker=NKE

Under Armour, Inc.
https://rdinvesting.com/news/?ticker=UA

NIKE, Inc. shares closed down 1.93% on about 9.1 million shares traded yesterday. Despite the drop, Nike hit a new high of $65.36 during intra-day trading. The company just recently kicked off its second annual "Equality" campaign on Martin Luther King Day which will run through February. Nike also showed off the gear that USA athletes will be wearing at the 2018 Olympic Winter Games in South Korea in February. The gear has been designed by the company to be able to withstand the weather elements as the games will be mostly outside. There was no other significant news to explain why shares soared to a new high other than that rival Under Armour had a terrible trading day. Nike soared 20% in last one year.

Access RDI's NIKE, Inc. Research Report at:
https://rdinvesting.com/news/?ticker=NKE

Under Armour, Inc. shares were destroyed on Tuesday, closing down 8.66% on trading volume almost double compared to usual. The stock fell to the bottom of the S&P 500 yesterday after a downgrade. An analyst at Macquarie, Laurent Vasilescu has lowered his price target on the stock to $8 and downgraded Under Armour to "underperform" from "neutral." He wrote in a note to clients this week that he expects the apparel company to earn a lot less than it previously did and that earnings before interest and taxes is estimated to be around $25 million. Previously he had estimated $85 million. He also expects the company will amend its credit agreement citing that its maximum last 12 months total debt to EBITDA ratio is 3.25 times, which he thinks the company will exceed resulting in breach of the 2014 credit agreement which has the threshold of 3.25x Debt to EBITDA. The stock has fallen over 50% in the last 12 months.

Access RDI's Under Armour, Inc. Research Report at:
https://rdinvesting.com/news/?ticker=UA

Our Actionable Research on NIKE, Inc. (NYSE: NKE) and Under Armour, Inc. (NYSE: UA) can be downloaded free of charge at Research Driven Investing.

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