Fairfax Acquires 15.68 Million Under Armour Shares, Boosting Ownership to 16.1%
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Share Acquisition: Fairfax Financial Holdings purchased 15.68 million shares of Under Armour between December 22 and 29 at an average price of approximately $4.53 per share, increasing its holdings to 30.45 million Class A and 7.78 million Class C shares, indicating strong confidence in the company's future.
- Ownership Increase: The latest amended Schedule 13G reveals Fairfax's beneficial ownership at 16.1% of Under Armour's Class A float, with nearly a 60% increase in Class A shares and more than doubling its Class C stake compared to the previous Form 3, reflecting support for the company's restructuring plan.
- Positive Market Reaction: Following Fairfax's acquisition, Under Armour's stock surged 6.07% to $5.07, which is interpreted by the market as a validation of the company's value by a major investor, potentially leading to future strategic or governance changes.
- Financial Outlook: Although Under Armour adjusted its fiscal 2026 revenue guidance down by 4% to 5%, Fairfax's buying spree suggests at least one heavyweight investor believes in the success of the company's turnaround strategy.
Analyst Views on UAA
Wall Street analysts forecast UAA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for UAA is 5.58 USD with a low forecast of 4.00 USD and a high forecast of 9.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
3 Buy
13 Hold
3 Sell
Hold
Current: 5.140
Low
4.00
Averages
5.58
High
9.00
Current: 5.140
Low
4.00
Averages
5.58
High
9.00
About UAA
Under Armour, Inc. is an inventor, marketer and distributor of branded athletic performance apparel, footwear and accessories for men, women and youth. Its primary business operates in four geographic segments: North America, comprising the United States and Canada, Europe, the Middle East and Africa (EMEA), Asia-Pacific, and Latin America. Its apparel comes in three primary fit types: compression (tight fit), fitted (athletic fit) and loose (relaxed fit). Its footwear includes products for running, training, basketball, cleated sports, recovery and outdoor applications, as well as casual use. Its accessories primarily include athletic performance gloves, bags, headwear and socks. It sells its apparel, footwear and accessories in North America through wholesale and direct-to-consumer channels. It sells its apparel, footwear and accessories in EMEA primarily through wholesale customers and independent distributors, along with e-commerce Websites and brand and factory house stores.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
