Form 4: Fairfax Financial Boosts Under Armour Stake

Fairfax Financial Holdings, led by Prem Watsa, significantly increased its beneficial ownership in Under Armour by purchasing over 13 million shares.

Summary

• Prem Watsa and Fairfax Financial Holdings acquired 11,504,478 Class A Common Shares of Under Armour, Inc. on December 30, 2025.
• The Class A shares were purchased at a weighted average price of $5.1408 per share, with prices ranging from $4.9950 to $5.1900.
• An additional 1,677,991 Class C Common Shares were acquired on the same date.
• The Class C shares were purchased at a weighted average price of $4.9474 per share, with prices ranging from $4.8100 to $4.9800.
• Following these transactions, the reporting persons indirectly beneficially own 41,958,923 Class A Common Shares and 9,457,355 Class C Common Shares.
• The securities are held by wholly-owned subsidiaries of Fairfax Financial Holdings Limited, with Mr. Watsa being the Chief Executive Officer and controlling person.

Sentiment

Score: 8

Explanation: The substantial insider buying by a major investor and director, Prem Watsa and Fairfax Financial Holdings, indicates strong confidence in the company's future, which is a highly positive signal for the market.

Positives

• Significant insider buying by a 10% owner and director, Prem Watsa and Fairfax Financial Holdings, signals strong confidence in Under Armour's future prospects.
• The substantial investment of approximately $67.4 million (11,504,478 Class A shares at $5.1408 and 1,677,991 Class C shares at $4.9474) demonstrates a material commitment.
• Increased beneficial ownership by a major institutional investor could be viewed positively by the market.

Future Outlook

NA

Management Comments

• The Reporting Persons undertake, upon request by the staff of the Securities and Exchange Commission, the Issuer or a security holder of the Issuer to provide full information regarding the number of shares purchased at each separate price.
• Each of the Reporting Persons disclaims beneficial ownership of the securities reported herein for purposes of Rule 16a-1(a) under the Exchange Act, except to the extent of its or his pecuniary interest therein, if any.
• This report shall not be deemed an admission that any of the Reporting Persons is a beneficial owner for the purpose of Section 16 of the Exchange Act, or for any other purpose.

Industry Context

This significant insider purchase by a prominent investor like Prem Watsa in the apparel and footwear industry could indicate a belief in the long-term value of Under Armour, potentially signaling a contrarian view or confidence in a turnaround, especially if the stock has been under pressure.

Related Party Transactions

• The securities are held by wholly-owned subsidiaries of Fairfax Financial Holdings Limited, which is controlled by Mr. Watsa, indicating a related party relationship for the beneficial ownership.

Stakeholder Impact

• Shareholders: Existing shareholders may view this as a positive signal, potentially increasing confidence and demand for the stock.
• Employees: No direct impact mentioned, but a stronger stock performance could indirectly boost morale or stock-based compensation value.

Next Steps

• The Reporting Persons undertake to provide full information regarding the number of shares purchased at each separate price upon request by the SEC staff, the Issuer, or a security holder.

Key Dates

Recommendation

The substantial insider buying by a highly respected investor like Prem Watsa and his firm, Fairfax Financial Holdings, who also serves as a director and 10% owner, is a very strong bullish signal. This indicates deep conviction in Under Armour's long-term value and potential for appreciation, suggesting the stock may be undervalued at current prices. Such a significant investment by an informed insider often precedes positive developments or a re-rating of the stock.

Keywords

Under Armour, UA, Fairfax Financial Holdings, Prem Watsa, Insider Buying, Form 4, Equity Purchase, 10% Owner, Director, Stock Acquisition