Watsa Acquires 13.2 Million Shares of Under Armour for $67.4 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: NASDAQ.COM
- Share Acquisition: On January 2, 2026, V. Prem Watsa acquired 13.2 million shares of Under Armour at a weighted average price of $5.12 per share for a total transaction value of approximately $67.4 million, indicating his confidence in the company's future prospects.
- Ownership Structure Shift: This transaction reduced Watsa's direct ownership to zero, with all shares held indirectly through subsidiaries of Fairfax Financial Holdings, suggesting a potential activist investor role that could influence corporate governance.
- Market Performance Analysis: Despite Watsa's acquisition reflecting an undervaluation of Under Armour, the company reported a slight revenue contraction to $2.5 billion in the first half of 2025, with a 1% year-over-year decline in gross margin, indicating higher investment risks at this time.
- Brand Value Assessment: Under Armour's market cap has plummeted from $24 billion at its 2018 debut to just $2.15 billion now, highlighting that while brand recognition remains strong, the changing market dynamics necessitate cautious evaluation of its future growth potential.
Analyst Views on UA
Wall Street analysts forecast UA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for UA is 7.50 USD with a low forecast of 7.50 USD and a high forecast of 7.50 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.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 5.160
Low
7.50
Averages
7.50
High
7.50
Current: 5.160
Low
7.50
Averages
7.50
High
7.50
About UA
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.
