Insider Trading May 14, 2026 07:46 PM

Fairfax Financial and CEO Prem Watsa Increase Stake in Under Armour Shares

Major institutional investment activity occurs as shares trade below analyst-derived fair value, following mixed quarterly earnings reports.

By Avery Klein UA

Fairfax Financial Holdings Ltd. and its Chief Executive Officer, Prem Watsa, acquired a combined total of 44,179,216 Class A Common Shares of Under Armour Inc. over three days in May 2026. These purchases occurred while the stock was trading at levels significantly below some valuation estimates, despite recent negative market reactions to the company's latest earnings report.

Fairfax Financial and CEO Prem Watsa Increase Stake in Under Armour Shares
UA

Key Points

  • The acquisition of shares by Fairfax Financial and its CEO, Prem Watsa, indicates substantial internal confidence in Under Armour's long-term value.
  • Purchases occurred while the stock traded at $4.96, which is notably below InvestingPro’s Fair Value estimate of $7.97.
  • Under Armour reported a revenue beat of $1.2 billion (vs. expected $1.17 billion), though this was overshadowed by an adjusted diluted loss per share of $0.03.

Fairfax Financial Holdings Ltd., along with its Chief Executive Officer, Prem Watsa, executed substantial acquisitions of Under Armour Inc.'s Class A Common Shares. These transactions collectively represent an investment totaling approximately $5.87 million and involved a significant increase in the reporting owners' ownership stake in the athletic apparel company. The purchases were spread out over three trading days, specifically between May 12 and May 14, 2026.

During this period, the shares were purchased across a price range that varied from $4.9733 to $5.0 per share. This buying activity occurred against a backdrop of market weakness for Under Armour (NASDAQ:UA). Prior to these transactions, the stock had seen a decline of 20% over the preceding week and was trading at $4.96. Notably, this current trading price is considerably lower than InvestingPro's calculated Fair Value of $7.97, suggesting that the market may perceive the shares as undervalued.

The company currently holds a market capitalization estimated at $2.11 billion. The details of the acquisitions are structured as follows:

  • On May 12, the reporting owners acquired 438,723 Class A Common Shares. These shares were purchased at a weighted average price of $4.9934 per share, with individual transaction prices observed between $4.925 and $5.000.
  • The subsequent day, May 13, saw the purchase of an additional 739,521 Class A Common Shares. These shares were acquired at a weighted average price of $4.9733, with individual share prices ranging from $4.855 to $5.000.
  • A smaller transaction was recorded on May 14, involving the acquisition of 100 shares at a set price of $5.00 per share.

As a result of these transactions, the reporting owners now collectively possess a total holding of 44,179,216 Class A Common Shares. These securities are held indirectly through subsidiaries associated with Fairfax Financial Holdings Limited. It is noted that Prem Watsa serves as the Chief Executive Officer and controlling person of Fairfax Financial Holdings Limited.


These insider actions were observed amidst mixed financial results reported by Under Armour Inc. The company recently disclosed its fourth-quarter fiscal 2026 earnings. In this report, it posted an adjusted diluted loss per share of $0.03. This figure did not meet the consensus expectations set by analysts, who had projected a smaller loss of $0.02 per share.

However, the financial picture contained elements of strength as well. Under Armour exceeded revenue forecasts by reporting $1.2 billion, surpassing the anticipated figure of $1.17 billion. Despite achieving this revenue beat, the broader market reaction was negative, leading to a significant decline in pre-market trading for the stock.

These developments underscore a mixed financial performance profile for Under Armour. While revenue generation showed signs of strength relative to projections, these gains were not sufficient to offset the reported earnings shortfall. Consequently, investors are anticipated to scrutinize the company's future strategic initiatives and subsequent earnings calls for further clarity regarding its trajectory.


The confluence of significant institutional buying activity, coupled with trading at a level significantly below certain valuation metrics, suggests internal confidence from key stakeholders in Under Armour’s long-term value. Meanwhile, the recent quarterly report highlights divergent operational performance, where top-line revenue growth was achieved despite disappointing earnings results.

Risks

  • The market's negative reaction to the earnings report, resulting in a significant pre-market decline, suggests continued investor caution regarding profitability.
  • The reported adjusted diluted loss per share ($0.03) failed to meet analyst expectations ($0.02), indicating pressure on cost management or operational efficiency.
  • The discrepancy between strong revenue growth and disappointing earnings may signal challenges in translating top-line sales into profitable outcomes, affecting future valuation.

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