Under Armour Stock Surges After Large Insider Purchase

Benzinga · 12/30/2025 18:14

Under Armour Inc (NYSE:UAA) (NYSE:UA) shares are trading higher Tuesday afternoon after fresh SEC filings revealed a large, concentrated purchase by longtime value investor Fairfax Financial Holdings and related entities.

Under Armour stock is charging ahead with explosive momentum. Why are UAA shares rallying?

What To Know: A Form 4 filing from late Monday shows Fairfax bought a total of 15.68 million Under Armour shares, across the Class A and Class C lines, between Dec. 22 and Dec. 29 at a weighted average price of about $4.53 per share, lifting its stake to 30.45 million Class A and 7.78 million Class C shares.

An amended Schedule 13G filed for the same period puts Fairfax's beneficial ownership at 16.1% of Under Armour's Class A float. Compared with the Form 3 filed Dec. 22, which listed 19.31 million Class A and 3.24 million Class C shares, Fairfax has increased its Class A position by nearly 60% and more than doubled its Class C stake.

Because the stock had been trading near its 52-week low of $4.13, the decision to buy aggressively, and at roughly a 10% premium to those lows, is being read as a strong vote of confidence from a new 10%-plus insider with board representation.

Traders often see such large, above-market accumulation as both a valuation signal and a potential catalyst for future strategic or governance changes, while the absorption of shares can also tighten available supply.

What Else: In November, Under Armour reported second-quarter adjusted EPS of 4 cents versus the 2 cents expected, with gross margin at 47.3%, down 250 bps year-over-year but ahead of consensus, while guiding fiscal 2026 revenue down 4% to 5% and adjusted EPS to 3 to 5 cents amid soft demand and tariff headwinds.

Days later, the company expanded its fiscal 2025 restructuring plan, adding $95 million of charges tied to separating the Curry Brand and other actions, but raised its fiscal 2026 adjusted operating-income outlook to $95 to $110 million.

Fairfax's latest buying spree suggests at least one heavyweight investor believes that turnaround plan will ultimately pay off.

Benzinga Edge Rankings: According to Benzinga Edge stock rankings, Under Armour shows a Value score of 59.22, while its Momentum score sits at 4.22, with a positive short-term price trend but negative medium- and long-term trends, highlighting a valuation-driven setup rather than a momentum play.

UAA Price Action: Under Armour shares were up 6.07% at $5.07 at the time of publication on Tuesday, according to Benzinga Pro data.

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