$UAA: Voya Cuts Stake by 65% — While $434M Settlement Still Shadows Outlook

Court: D. Maryland

Case: 1:17-cv-00388

Voya Investment Management slashed its holdings in Under Armour UAA by 65.4% in Q1, selling nearly 782,000 shares and leaving it with just 0.10% ownership valued at $2.58 million. The reduction comes as analysts remain cautious, with a consensus rating of “Hold” and price targets drifting lower toward the $6.00–$6.70 range. Recent earnings disappointed, with Q2 EPS of $0.02, a miss against expectations, and revenue falling 4.2% year-over-year. Despite insider buying by directors Dawn Fitzpatrick and Robert John Sweeney, investor sentiment remains weighed down by an unresolved $434 million settlement over past revenue growth claims.

• 65.4% reduction in stake by Voya Investment Management.
• $0.02 EPS in Q2, missing estimates by $0.01.
• 4.2% revenue decline year-over-year.
• Consensus Hold rating, average target price of $6.70.
• $434M settlement continues to hang over the stock.

Timeline Overview

• Apr 21, 2016 — Q1 earnings report marks 26 straight quarters of 20%+ revenue growth.
• Jan 31, 2017 — Weak Q4 results and CFO resignation trigger 26% stock plunge.
• Feb 3, 2017 — Shareholders file lawsuit alleging revenue misrepresentation.
• Feb 10, 2017 — Class action expands as more claims surface.
• 2025 — Under Armour agrees to a $434M settlement with investors.

Allegations Include

• Misleading investors on sustaining 20%+ growth.
• Concealing excess inventory risks and retailer bankruptcies.
• Downplaying weakening demand trends.
• Breach of fiduciary duty through false guidance.

Investor Update

The $434 million settlement resolves shareholder litigation over inflated growth claims, but credibility concerns remain. Combined with softer earnings and institutional divestment, investor focus now shifts to whether Under Armour can stabilize performance and rebuild long-term trust.

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