Insider Trading January 21, 2026

Fairfax Financial Increases Stake in Under Armour with $49.7 Million Investment

Significant Purchases Signal Confidence Amid Mixed Operational Outlook

By Avery Klein UA
Fairfax Financial Increases Stake in Under Armour with $49.7 Million Investment
UA

Fairfax Financial Holdings and associated parties have expanded their ownership in Under Armour through a series of share acquisitions totaling nearly $50 million. These transactions took place across three separate days in January 2026, increasing their indirect holding to over 18 million shares. Meanwhile, Under Armour delivered an earnings beat for Q2 2025 but faces credit rating scrutiny and leadership changes, including the planned end of its partnership with Stephen Curry.

Key Points

  • Fairfax Financial Holdings LTD/CAN and WATSA V PREM ET AL acquired a total of 8,607,267 Under Armour shares across three transactions in January 2026, increasing their combined indirect holdings to over 18 million shares.
  • Under Armour exceeded earnings per share and revenue expectations in Q2 2025, reporting EPS of $0.04 and revenue of $1.33 billion versus anticipated $0.02 EPS and $1.31 billion revenue.
  • Despite positive earnings, S&P Global Ratings placed Under Armour on CreditWatch with negative implications due to operational setbacks and revised leverage estimates upward to approximately 4x for fiscal 2026.

In a noteworthy move within the consumer discretionary sector, Fairfax Financial Holdings LTD/CAN, alongside WATSA V PREM ET AL, both recognized as ten percent or greater shareholders, have collectively acquired a significant number of Under Armour, Inc. (NASDAQ: UA) Class C Common Shares. The cumulative value of these acquisitions reached $49.7 million.

The purchases were executed over three distinct dates. On January 16, 2026, the investors procured 1,837,686 shares at an average price of $5.5953 per share, with transaction prices spanning from $5.450 to $5.700. Four days later, on January 20, an additional 1,769,581 shares were bought, averaging $5.6175 per share, within a price band of $5.510 to $5.800. The final tranche occurred on January 21, consisting of 5,000,000 shares acquired at a weighted average of $5.8923, ranging between $5.685 and $5.940 per share.

Following completion of these trades, Fairfax Financial Holdings LTD/CAN and WATSA V PREM ET AL together hold an indirect stake comprising 18,064,622 Under Armour shares. This significant ownership position underscores their ongoing interest in the company's prospects despite recent operational challenges.

Separately, Under Armour reported its second quarter fiscal 2025 earnings results, narrowly surpassing analyst expectations. The company registered an earnings per share (EPS) of $0.04, exceeding the consensus estimate of $0.02. Revenue totaled $1.33 billion, marginally outperforming the forecast of $1.31 billion. However, these positive results stand alongside cautionary signals as S&P Global Ratings placed Under Armour on its CreditWatch with negative implications. The rating agency highlighted operational declines and continuing business challenges, forecasting lease-adjusted leverage near 4 times for fiscal 2026, a revision higher than prior estimates.

In personnel developments, Under Armour confirmed a series of senior leadership appointments aimed at strengthening its global reach, notably naming Kara Trent as Chief Merchandising Officer. The company also announced the conclusion of its enduring partnership with basketball icon Stephen Curry in 2026.

Additionally, it is worth noting broader market movements, with Carvana set to enter the S&P 500 index in December 2025, as announced by S&P Dow Jones Indices.

Risks

  • Continued operational declines and elevated leverage pose credit risks for Under Armour, as highlighted by S&P Global Ratings’ CreditWatch placement.
  • The ending of Under Armour’s long-term partnership with Stephen Curry in 2026 may impact brand momentum and endorsement-driven revenue streams.
  • Market uncertainties related to leadership changes within Under Armour could introduce transitional challenges affecting global merchandising strategies.

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