Under Armour Executive Chairman Kevin Plank has sold about 824,000 shares of his Baltimore-based company’s Class C shares as part of a pre-arranged stock trading plan that will ultimately see the company founder and brand chief sell up to 5 million shares.
The shares, which were sold on Nov. 4 and 5, according to a Securities and Exchange Commission filing Monday evening, are part of a planned sale between November and the next 14 months. Plank is selling the shares for asset diversification and for tax and estate planning purposes, the company said in August.
The sales will only slightly dilute Plank’s overall Under Armour holdings and do not affect his control of the company’s voting shares.
The sales price of the shares sold by Plank last week ranged from $21.39 to $22.37. The company’s share price at the close of trading Monday was $21.12.
Plank, the company founder, owned 34,450,000 shares of the company’s Class B common stock, 181,608 shares of Class A stock and 33,819,595 shares of Class C stock, according to an Aug. 20 SEC filing. This represents approximately 14.6% of the total shares of Class A, B and C stock outstanding as of July 31, 2021, the company said.
If Plank completes all the planned sales under the trading plan, he would beneficially own approximately 13.5% of the total shares of Class A, B and C stock outstanding as of July 31, 2021, the company said. Shares of Class A stock have one vote and Class B shares have 10 votes. Class C shares have no voting rights, except in limited circumstances.
Plank beneficially owned approximately 15.5% of the Class A and Class B shares outstanding as of July 31, 2021, representing about 64.7% of the combined voting power of Under Armour’s outstanding shares.
Plank’s last sale of Under Armour shares was finished in April 2016 as part of a similar trading plan, the company said.
Under Armour has been on a roll in the last year. Earlier this month the company reported stronger-than-expected third-quarter earnings and revenue of $1.5 billion, up about 8% from a year ago. The company also boosted its sales forecast for the rest of the year.