Under Armour (UA: sentiment, chart, options) shares are hovering near a 4% loss after Stifel Nicolaus started coverage of the stock at "hold." Covering analyst Thomas Shaw noted that the athletic-apparel firm benefits from its strong brand, but he sees "potential pitfalls" related to a slowdown in consumer spending. Shaw is in the majority with his skeptical recommendation; Zacks reports that all 6 of UA's analyst rankings are of the "hold" variety.

In a note to clients, the analyst stated, "UA products will continue to sell...however, the consumer continues to feel worse across most measures and we do not see temporary relief from tax rebates doing much more than filling gas tanks and paying bills." Shaw underscored his opinion by stating, "This is clearly the most difficult economy UA has faced in its short history."

Today's drop extends UA's year-to-date decline of 21%. The stock has been ushered lower by its 10-week and 20-week moving averages since September 2007, and its downtrend has definitely attracted the attention of short sellers. Currently, a whopping 43% of UA's float is dedicated to short interest and we could see this number grow if the stock's slump continues.