Form 4: Under Armour Sees Major Insider Share Purchases

Fairfax Financial and CEO Prem Watsa significantly increase their indirect stake in Under Armour through recent share acquisitions.

Summary

• V. Prem Watsa and Fairfax Financial Holdings Limited, both identified as 10% owners and directors, reported significant indirect purchases of Under Armour shares.
• On January 22, 2026, 411,057 Class C Common Shares were purchased at a weighted average price of $6.1492 per share, with prices ranging from $6.145 to $6.150.
• On January 23, 2026, an additional 928,397 Class C Common Shares were acquired at a weighted average price of $6.1453 per share, with prices ranging from $6.130 to $6.150.
• On January 26, 2026, 730,238 Class C Common Shares were purchased at a weighted average price of $6.1822 per share, with prices ranging from $6.125 to $6.200.
• Also on January 26, 2026, 265,658 Class A Common Shares were acquired at a weighted average price of $6.2968 per share, with prices ranging from $6.285 to $6.300.
• Following these transactions, the reporting persons indirectly beneficially own 20,134,314 Class C Common Shares and 42,224,581 Class A Common Shares.
• The acquired securities are held by wholly-owned subsidiaries of Fairfax Financial Holdings Limited, which Mr. Watsa controls as Chief Executive Officer and controlling person through various holding companies.

Sentiment

Score: 8

Explanation: The significant and consistent insider buying by a major shareholder and director, Prem Watsa and Fairfax Financial, indicates strong confidence in the company's future and suggests the shares may be undervalued.

Positives

• Significant insider buying by a 10% owner and director, V. Prem Watsa, and Fairfax Financial Holdings Limited, signals strong confidence in Under Armour's future prospects.
• The purchases involve substantial amounts of both Class C and Class A common shares, totaling over 2.3 million shares across multiple transactions.
• The consistent buying activity over several days suggests a deliberate and high-conviction investment strategy by key insiders.

Future Outlook

NA

Industry Context

Insider buying, especially by a significant shareholder and director, can be interpreted as a strong vote of confidence in the company's valuation and future performance, potentially indicating that the insiders believe the stock is undervalued relative to its intrinsic worth. This is a company-specific event rather than an industry trend.

Comparison to Industry Standards

• Insider buying activity is generally viewed positively across all industries, as it aligns management and significant shareholders' interests with those of other investors.
• While specific comparable companies or projects are not mentioned, the scale of these purchases by Fairfax Financial, a well-known investment firm led by Prem Watsa, suggests a high-conviction investment, which is a standard indicator of perceived value.

Related Party Transactions

• The acquired securities are held by wholly-owned subsidiaries of Fairfax Financial Holdings Limited, which is controlled by Mr. Watsa through certain holding companies. This structure clarifies the indirect beneficial ownership.

Stakeholder Impact

• Shareholders: The insider buying could instill confidence among existing shareholders and attract new investors, potentially leading to increased demand for the stock.
• Management/Employees: A strong vote of confidence from a major investor could boost morale and reinforce strategic direction.

Key Dates

Recommendation

The substantial and repeated purchases of both Class A and Class C common shares by a 10% owner and director, Prem Watsa, through Fairfax Financial Holdings, signals a high level of conviction in Under Armour's valuation and future performance. This insider activity suggests that those with deep knowledge of the company believe the stock is currently undervalued, making it a compelling 'strong buy' signal for investors.

Keywords

Under Armour, UAA, Insider Buying, Form 4, Prem Watsa, Fairfax Financial, Share Purchase, Beneficial Ownership, Director, 10% Owner, Equity Acquisition