Under Armour (UAA) Jumps 13.9% After $400-Million Debt Offer
Under Armour, Inc. (NYSE:UAA) is one of the
Under Armour ended two straight days of losses on Friday, jumping 13.94 percent to end at $7.03 apiece after announcing plans to raise $400 million through the issuance of debt.
In a statement earlier this week, Under Armour, Inc. (NYSE:UAA) said the notes carry a yield rate of 7.25 percent and will be paid semi-annually. The notes are senior, unsecured obligations, and will mature in 2030. The sale is expected to close on Monday, June 23.
According to Under Armour, Inc. (NYSE:UAA), net proceeds will be used to pay off its $600 million 3.25 percent senior notes due 2026.
In recent news, Under Armour, Inc. (NYSE:UAA) extended its exclusive apparel partnership with the Central Intercollegiate Athletic Association (CIAA) through 2029.
Leonard Zhukovsky / Shutterstock.com
Under Armour, Inc.'s (NYSE:UAA) relationship with the CIAA began in 2018 after Russell Athletic exited the collegiate uniform space. The partnership gave exclusive access to UA uniforms, gear, footwear, and training equipment.
While we acknowledge the potential of UAA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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Guide to dollar-cost averaging: Use this strategy to build wealth over time
Dollar-cost averaging is a popular investing strategy that entails buying new investments at regular intervals, such as once a month. If you have a 401(k), you're already dollar-cost averaging with every paycheck. But you can also use the practice in a typical brokerage account, individual retirement account (IRA) or any other type of investing account. You can implement the strategy manually or set your brokerage account to automatically invest at regular intervals. Dollar-cost averaging is one of the easiest techniques to boost your returns without taking on extra risk, and it's a great way to practice buy-and-hold investing. Dollar-cost averaging can be especially beneficial for people who want to set up their investments and deal with them infrequently. Here's what dollar-cost averaging is and how to use it to maximize your investment gains. Dollar-cost averaging is the practice of putting a fixed amount of money into an investment on a regular basis, such as monthly or even bi-weekly. Over time, the strategy allows you to spread out when you buy — which means you'll do so at market lows and highs — averaging your purchase prices. Because you're always investing the same amount of money, when prices are lower, you'll buy more shares, and when they're higher, you'll buy fewer shares. It's the opposite of timing the market, which entails trying to predict in which direction prices are headed next risking losses if stock prices fall. By setting up a regular buying plan when the markets (and you) are calm, you'll avoid this psychological bias and take advantage of falling stock prices when everyone else becomes scared. If you have a 401(k) retirement account, you're already practicing dollar-cost averaging, by adding to your investments with each paycheck. You're also already using the strategy if you reinvest your dividends, since those payouts are invested back into the market at regular intervals, likely each quarter. Imagine an employee who earns $3,000 each month and contributes 10 percent of that to their 401(k) plan, choosing to invest in an S&P 500 index fund. Because the price of the fund moves around, the number of shares purchased isn't always the same, but each month $300 is invested. The table below shows this example over a 10-month period. Month Contribution Price of fund Shares bought Shares held Total value 1 $300.00 $100.00 3 3 $300.00 2 $300.00 $97.50 3.08 6.08 $592.80 3 $300.00 $101.30 2.96 9.04 $915.75 4 $300.00 $85.45 3.51 12.55 $1,072.40 5 $300.00 $91.23 3.29 15.84 $1,445.08 6 $300.00 $93.20 3.22 19.06 $1,776.39 7 $300.00 $96.50 3.11 22.17 $2,139.41 8 $300.00 $100.54 2.98 25.15 $2,528.58 9 $300.00 $101.43 2.96 28.11 $2,851.20 10 $300.00 $105.00 2.86 30.97 $3,251.85 You can see that the value of the employee's investments went up 8.4 percent on their $3,000 in total contributions, despite the fund only increasing 5 percent over the period. That's because the employee was able to buy a greater number of shares when the price was lower, taking advantage of the market volatility. MORE: Bankrate's list of the best online brokers It can depend on your specific situation, but dollar-cost averaging has been a successful way for many people to invest over time. The question is about whether you should time your purchases based on market conditions or just buy consistently over time using the dollar-cost averaging method. Timing the market has proven to be very difficult and most people are better off with a consistent investment plan. Another issue is that most people are investing money as they earn it, likely through a workplace retirement plan such as a 401(k). Dollar-cost averaging makes sense here because you're investing what you can as soon as it's available to be invested. However, if you inherited a large sum of money, say $100,000, you wouldn't want to spread that out to be invested over years. In that scenario, it's best to get it invested relatively quickly, but you could still spread out purchases over a few months to take advantage of potential volatility. Dollar-cost averaging can make sense for a lot of investors, but it does come with some downsides: Waiting to buy can mean missing opportunities. 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In that case, you might consider opening another brokerage account that allows you to do exactly what you want. There are other solid advantages to having multiple brokerage accounts, too, and you can usually get a lot of value by having multiple accounts. Now that you've got a broker who can execute your automatic trading plan, it's time to figure out how much you can regularly invest. With any kind of stock or fund, you want to be able to leave your money in the investment for at least three to five years. Since stocks can fluctuate a lot over short periods, try to allow the investment some time to grow and get over any short-term declines in price. That means you'll need to be able to live only on your uninvested money during that time. So starting with your monthly budget, figure how much you can devote to investing. Once you have an emergency fund in place, how much can you invest and not need? 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