Form 4: Fairfax, Prem Watsa Boost Under Armour Stake

Fairfax Financial Holdings and its CEO Prem Watsa significantly increased their indirect beneficial ownership in Under Armour Class C Common Shares through multiple purchases in January 2026.

Summary

• Prem Watsa and Fairfax Financial Holdings Limited, both identified as 10% owners and directors of Under Armour, Inc., reported acquiring additional Class C Common Shares.
• On January 16, 2026, 1,837,686 Class C Common Shares were acquired at a weighted average price of $5.5953 per share, with prices ranging from $5.450 to $5.700.
• On January 20, 2026, an additional 1,769,581 Class C Common Shares were acquired at a weighted average price of $5.6175 per share, with prices ranging from $5.510 to $5.800.
• On January 21, 2026, a further 5,000,000 Class C Common Shares were acquired at a weighted average price of $5.8923 per share, with prices ranging from $5.685 to $5.940.
• Following these transactions, the reporting persons indirectly beneficially own a total of 18,064,622 Class C Common Shares.
• The securities are held by wholly-owned subsidiaries of Fairfax Financial Holdings Limited, with Mr. Watsa controlling Fairfax through various holding companies.
• The reporting persons disclaim beneficial ownership of the reported securities except to the extent of their pecuniary interest therein.

Sentiment

Score: 8

Explanation: The significant increase in beneficial ownership by a major investor and director, Prem Watsa and Fairfax Financial Holdings, is a strong positive signal, indicating confidence in the company's valuation and future prospects.

Positives

• Significant insider buying by a major investor and director, Prem Watsa and Fairfax Financial Holdings, indicating confidence in Under Armour's future prospects.
• The cumulative acquisition of 8,607,267 Class C Common Shares represents a substantial increase in their stake.

Future Outlook

This filing does not contain any forward-looking statements or guidance regarding the company's future performance or outlook.

Management Comments

• Prem Watsa, as Chief Executive Officer and controlling person of Fairfax Financial Holdings Limited, is involved in the indirect beneficial ownership of these securities.
• 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.

Industry Context

Insider buying by a significant shareholder and director like Prem Watsa, known for his value investing approach, often signals a belief in the long-term value and potential of the company, potentially influencing market sentiment positively for Under Armour within the athletic apparel industry.

Related Party Transactions

• The reported transactions involve the acquisition of Class C Common Shares by Prem Watsa and Fairfax Financial Holdings Limited, who are identified as a director and a 10% owner of Under Armour, Inc., making these related party dealings.

Stakeholder Impact

• Shareholders may view this significant insider buying as a vote of confidence from a major investor, potentially leading to increased investor interest and positive sentiment.
• Employees and management might interpret this as a sign of stability and belief in the company's strategic direction from a key stakeholder.

Key Dates

Recommendation

The substantial increase in beneficial ownership by Prem Watsa and Fairfax Financial Holdings, a renowned value investor, signals strong conviction in Under Armour's intrinsic value and future potential. Such significant insider buying by a director and 10% owner typically suggests that the insiders believe the stock is undervalued or poised for future growth, making it an attractive 'buy' signal for seasoned investors.

Keywords

Under Armour, UA, Fairfax Financial Holdings, Prem Watsa, Insider Buying, Form 4, Beneficial Ownership, Class C Common Shares