Form 4: Fairfax Financial Boosts Under Armour Stake

Fairfax Financial Holdings, led by Prem Watsa, significantly increased its beneficial ownership in Under Armour, Inc. through recent share purchases.

Summary

• Prem Watsa and Fairfax Financial Holdings Ltd/CAN, who are Directors and 10% Owners of Under Armour, Inc. [UA], reported significant share acquisitions.
• On December 30, 2025, they acquired 11,504,478 Class A Common Shares at a weighted average price of $5.1408 per share.
• They also acquired 1,677,991 Class C Common Shares at a weighted average price of $4.9474 per share on the same date.
• Following these transactions, their indirect beneficial ownership stands at 41,958,923 Class A Common Shares and 9,457,355 Class C Common Shares.
• The shares are held by wholly-owned subsidiaries of Fairfax Financial Holdings Limited, with Mr. Watsa controlling Fairfax.

Sentiment

Score: 8

Explanation: The substantial insider buying by a prominent investor like Prem Watsa and Fairfax Financial indicates strong confidence in Under Armour's future, which is a highly positive signal for the stock.

Positives

• Significant insider buying by a 10% owner and director, Prem Watsa, often signals confidence in the company's future prospects.
• The substantial investment by Fairfax Financial Holdings, a well-known value investor, could be seen as a positive endorsement of Under Armour's valuation or strategic direction.

Future Outlook

The filing does not contain explicit forward-looking statements or guidance from Under Armour, Inc. It solely reports a change in beneficial ownership by a significant shareholder.

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 insider buying by Fairfax Financial, known for its long-term value investing approach, could suggest a belief that Under Armour's current valuation is attractive relative to its intrinsic value or future prospects within the athletic apparel and footwear industry. It may also indicate a strategic commitment to the company amidst competitive pressures from larger players like Nike and Adidas.

Related Party Transactions

• The transactions involve Fairfax Financial Holdings Limited, a 10% owner and entity controlled by Prem Watsa, who is also a director of Under Armour, Inc. The shares were acquired by wholly-owned subsidiaries of Fairfax Financial Holdings Limited.

Stakeholder Impact

• Shareholders: The significant increase in ownership by a major institutional investor and director could instill greater confidence among existing shareholders and attract new investors, potentially influencing stock price positively.
• Management: The increased stake by a controlling person like Prem Watsa may lead to closer oversight or strategic influence on the company's direction.

Key Dates

Recommendation

The substantial insider buying by Prem Watsa and Fairfax Financial Holdings, who are both directors and 10% owners, is a strong bullish signal. Such a significant investment by a renowned value investor suggests a belief that Under Armour is undervalued or has strong future growth potential, making it an attractive 'buy' for seasoned investors.

Keywords

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