A 10 Percent Owner Bought 13.2 Million Under Armour Shares for $67.4 Million
Key Points
13,182,469 shares were acquired for a total of ~$67.4 million, based on a weighted average price of $5.12 per share on Jan. 2, 2026.
All shares were acquired via indirect entities controlled through Fairfax Financial Holdings Limited subsidiaries, with no direct purchases or derivative transactions involved.
This transaction resulted in Watsa holding all reported shares indirectly, with direct ownership reduced to zero after the transaction.
On Jan. 2, 2026, V. Prem Watsa, 10% Owner, executed open-market purchases totaling 13,182,469 shares of Under Armour (NYSE:UA) for a transaction value of approximately $67.4 million, as detailed in the SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Shares traded | 13,182,469 |
| Transaction value | $67.4 million |
| Post-transaction shares (direct) | 0 |
| Post-transaction shares (indirect) | 51,416,278 |
| Post-transaction value (direct ownership) | ~$0.00 |
Transaction value based on SEC Form 4 weighted average purchase price ($5.12); post-transaction value based on Jan. 2, 2026 market close ($5.07).
Key questions
- What was the overall impact on Watsa's ownership structure?
All shares acquired in this transaction were attributed to indirect entities, resulting in zero direct ownership and consolidating the full position under Fairfax Financial Holdings Limited subsidiaries. - How significant was this transaction relative to Watsa's prior holdings?
This purchase resulted in post-transaction indirect holdings of 51,416,278 shares, with a transition from direct to indirect ownership. - Were derivative securities or options involved in this activity?
No options or derivative instruments were exercised or transacted; the activity was limited to open-market purchases through indirect entities. - How does this transaction relate to the overall capacity of Watsa's position?
With direct holdings at zero and all shares now managed through indirect vehicles, the transaction reflects a capacity-driven transition, utilizing available indirect capacity to consolidate ownership within controlled entities.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $5.05 billion |
| Net income (TTM) | ($87.65 million) |
| Employees | 6,800 |
| 1-year price change | (30.40%) |
* 1-year price change calculated using Jan. 2, 2026 as the reference date.
Company snapshot
- Offers performance apparel, footwear, and accessories under brands such as UNDER ARMOUR, HEATGEAR, and HOVR, with revenue primarily generated from product sales.
- Operates a hybrid business model combining wholesale distribution to sporting goods retailers and department stores with direct-to-consumer sales through branded stores and e-commerce platforms.
- Targets athletes, sports enthusiasts, and active consumers globally, serving markets in North America, EMEA, Asia-Pacific, and Latin America.
Under Armour is a global provider of athletic apparel, footwear, and accessories, leveraging a diverse brand portfolio and omni-channel distribution strategy. The company focuses on performance-driven innovation to address the needs of athletes and active individuals. Its broad international presence and direct-to-consumer initiatives support continued brand recognition and market reach.
What this transaction means for investors
V. Prem Watsa is often referred to as Canada's Warren Buffett because he likes to invest in insurance companies and consumer goods stocks he considers undervalued. When Under Armour stock made its market debut in early 2018, the company boasted a market cap north of $24 billion. The brand is arguably as recognizable now as it was back then but its market cap has dwindled down to just $2.15 billion at recent prices.
Watsa's purchase included a combination of Class A and Class C shares. He purchased 11.5 million class A shares, which trade under the ticker symbol UAA. Under Armour's Class A shares generally trade at a higher price because they entitle the holder to vote on shareholder matters. Watsa also purchased 1.7 million shares of Class C shares that offer no voting rights. The focus on voting-class shares suggests a desire to behave as an activist investor.
Market cap shrinkage makes it easy to see why Watsa might consider Under Armour undervalued. That said, now looks like a risky time for everyday investors to bet on this business. During the six months ended Sep. 30, 2025, revenue contracted slightly to $2.5 billion while the company's gross margin declined by 1% year over year to land at 47.7% of total revenue. Operations lost $20.4 milion during the six month period.
Glossary
Open-market purchase: Buying securities directly on a public exchange, rather than through private transactions or special arrangements.
Form 4: A required SEC filing disclosing insider trades by company officers, directors, or significant shareholders.
Indirect ownership: Holding securities through another entity, such as a subsidiary or trust, rather than in one's own name.
Direct ownership: Holding securities registered in the individual's own name, not through intermediaries.
Subsidiary: A company controlled by another company, typically through majority ownership of voting shares.
Derivative transaction: A trade involving financial contracts whose value is based on underlying assets, such as options or futures.
Weighted average price: The average price paid per share, weighted by the number of shares bought at each price.
Capacity-driven transition: Shifting holdings or ownership structure to maximize or utilize available capacity within controlled entities.
Omni-channel distribution: A sales strategy integrating multiple channels, such as retail stores, e-commerce, and wholesale, for a seamless customer experience.
TTM: The 12-month period ending with the most recent quarterly report.
Cory Renauer has no position in any of the stocks mentioned. The Motley Fool recommends Under Armour. The Motley Fool has a disclosure policy.