Geoff Gannon November 1, 2017

A Note on Under Armour: Always Prefer UA to UAA

Under Armour (UA) stock dropped a lot in the last 24 hours. So, some value investors may be looking at it. If you do look at it, make sure you consider buying only the class “C” shares trading under the ticker “UA” instead of the class A shares trading under the ticker “UAA”. The “UA” and “UAA” shares are identical in all respects except that the UAA shares have 1 vote and the UA shares have no voting rights. As Under Armour is effectively a controlled company (the CEO and founder holds Class B shares with super voting rights that give him a 65% share of total votes), there should be almost no premium on the UAA (voting) shares over the UA (non-voting) shares. However, as I write this, the “UA” shares trade at a price 9% lower than the UAA shares.

So, when you think Under Armour always think of the ticker as “UA” and never “UAA”.

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