Under Armour (UAA) stock could face pressure today after announcing an expensive settlement. It signed a securities litigation that was originally filed in 2017. This will cost $434 million. The firm will draw cash from its credit facility to cover the costs.
The settlement is too high against a claim that the firm did nothing wrong. Investors should continue to avoid UAA stock.
Fisker (FSRNQ) finally filed for bankruptcy last week on June 19, 2024. The firm reportedly faced financial pressures since August 2023. It had $500 million to $1 billion in assets against $100 million to $500 million in liabilities. Fisker is among the many electric vehicle firms that will flop in the coming quarters. Lucid (LCID), Rivian (RIVN), and Polestar (PSNY) also face liquidity risks in the long term.
In the shipping sector, Houthi attacks in the Red Sea hurt shipping traffic. Container shipping traffic fell by 90% between Dec. 2023 through mid-Feb. 2024. This raises the daily shipping rates and the cost of fuel. It adds cost pressures to firms like Shell (SHEL) and Euronav (EURN).
Insurance firms benefit because it increases the premiums that customers pay. Although it is not related to shipping, firms like Chubb Insurance (CB), Prudential (PRU), and Manulife (MFC) are enjoying an increase in insurance premiums.
