Shares of Under Armour remained largely unchanged Monday on their first day of trading after S&P Dow Jones Indices said it plans to remove the Baltimore-based athletic apparel maker from the widely followed S&P 500 stock market index.
Under Armour will be deleted from the index before the start of trading June 21 and be added to the S&P MidCap 400, S&P Dow Jones said Friday. The S&P 500 tracks performance of 500 large companies listed on U.S. stock exchanges.
The changes are being made to “ensure each index is more representative of its market capitalization range,” S&P Dow Jones said in an announcement.
“All companies moving from the S&P 500 to the S&P MidCap 400 are more representative of the mid-cap market space, and all companies moving from the S&P MidCap 400 to the S&P SmallCap 600 are more representative of the small-cap market space,” the announcement said.
Market capitalization is the total market value of a publicly traded company’s outstanding shares. Under Armour’s market cap is about $4.86 billion.
Shares of Under Armour have lost nearly half their value this year but rose a nickel Monday to $11.05 each.
The retailer posted a quarterly loss May 6 and missed revenue projections amid continuing supply chain and pandemic-related challenges. The financial performance hammered the company’s stock price, which lost about a third of its value, and left some analysts questioning management’s ability.
Less than two weeks later, the brand announced CEO Patrik Frisk’s June 1 departure after little more than two years at the helm. Frisk, who also served as president, engineered the company’s recently completed multiyear turnaround. Under Armour’s board has begun an internal and external search for a new president and CEO, with Chief Operating Officer Colin Browne serving in those roles on an interim basis.
Under Armour will be replaced in the S&P 500 by Keurig Dr Pepper Inc., while IPG Photonics Corp., also being downgraded, will be replaced by ON Semiconductor Corp.
Under Armour and IPG Photonics will replace Trinity Industries Inc. and Yelp Inc., respectively, in the S&P MidCap 400. Another apparel retailer, Urban Outfitters Inc., also is being downgraded as part of the announced changes, from the S&P MidCap 400 to the S&P SmallCap 600.
