Insider Buying Fuels Optimism Amid a Slipping Price
On January 27, 2026, Fairfax Financial Holdings’ reporting persons—controlled by the well‑known investment strategist William F. Watsa—added more than 1.6 million shares of Under Armour’s Class A and Class C common stock. The purchases, priced at $6.20 and $6.30 respectively, pushed Watsa’s cumulative stake to roughly 43 million shares (about 3.5 % of the outstanding shares). The transaction occurred just after the shares closed at $5.98, a level that marked a 3.6 % dip from the previous day and a 21.3 % decline on the year.
What Does the Deal Mean for Investors? Watsa’s buying is a strong vote of confidence that echoes his long‑standing strategy of acquiring undervalued, high‑margin companies. For a stock that has been trading below its 52‑week low, the infusion of capital from a respected investor may signal that the market is not fully pricing in Under Armour’s brand equity and product pipeline. Short‑term traders might view the purchase as a contrarian play, but for long‑term holders the move could justify a reassessment of the company’s valuation, especially given Under Armour’s low price‑to‑earnings ratio of 192 and the fact that the firm has been under pressure from competitors like Nike and Adidas.
Watsa’s Historical Activity: A Pattern of Patient Accumulation Reviewing Watsa’s transaction history from December 2025 to January 2026, the investor has steadily built a position in Under Armour’s Class A and Class C shares. Early‑year purchases began at $4.48 in late December and climbed to $6.18 by mid‑January, with a few large trades (over 5 million Class C shares) when the price dipped to the mid‑$5 range. The pattern shows a “buy‑the‑dip” philosophy: Watsa increases his stake as the stock falls, then continues to add when the price stabilizes around $6.10‑$6.30. His holdings now exceed 3 % of the company, a significant minority that could give him influence over governance discussions, especially if other institutional investors are aligned with his view.
Broader Insider Activity: A Quiet Consensus Other insiders—most notably CEO Kevin Plank—have sold shares during the same period, reflecting a typical management dividend or liquidity strategy. The net effect is that Watsa’s buying offsets a larger wave of selling, leaving the overall share supply relatively unchanged. For investors, this suggests that the market is absorbing a steady inflow of capital without a dramatic shift in supply/demand dynamics, which can help support the share price in the near term.
Bottom Line for Shareholders The transaction represents a clear signal that a respected, value‑oriented investor believes Under Armour’s brand and product strategy are undervalued. For investors who have been hesitant due to recent volatility, Watsa’s buy may serve as a catalyst for re‑evaluating the stock’s intrinsic value. Long‑term shareholders should watch for further accumulation, as it could presage a gradual rally, especially if Under Armour delivers on its performance‑apparel refresh and expands its global distribution footprint.
| Date | Owner | Transaction Type | Shares | Price per Share | Security |
|---|---|---|---|---|---|
| 2026-01-27 | WATSA V PREM ET AL () | Buy | 842,481.00 | 6.20 | Class C Common Shares |
| 2026-01-27 | WATSA V PREM ET AL () | Buy | 686,505.00 | 6.30 | Class A Common Shares |
| 2026-01-28 | WATSA V PREM ET AL () | Buy | 1,022,333.00 | 6.20 | Class C Common Shares |
| 2026-01-28 | WATSA V PREM ET AL () | Buy | 89,786.00 | 6.29 | Class A Common Shares |
