Under Armour Shares Soar 7.53% as Fairfax Stake Drives 442nd-Ranked Trading Volume

Market Snapshot

On December 30, 2025, , outpacing broader market trends, . The stock’s performance marked a continuation of its nine-day winning streak, driven by renewed investor interest following a strategic stake acquisition. , the recent rally signaled tentative optimism about the company’s restructuring efforts and market positioning.

Key Drivers

The primary catalyst for Under Armour’s stock surge was the significant stake purchase by Fairfax Financial Holdings, a long-term value investor led by CEO , dubbed “Canada’s Warren Buffett.” According to SEC filings, , lifting their ownership to 16.1% of Under Armour’s Class A float. This represents a 60% increase in Class A shares and a doubling of Class C shares, . The move validated the company’s undervaluation thesis, with Fairfax’s conservative investment philosophy reinforcing confidence in Under Armour’s turnaround strategy.

The market reaction to Fairfax’s acquisition was immediate and pronounced. Following the disclosure, , reflecting investor perception of the stake as a strategic endorsement. Analysts noted that Fairfax’s decision to deepen its position—despite Under Armour’s ongoing revenue decline and weak financial metrics—suggests belief in the firm’s long-term value. The investor’s track record of identifying undervalued assets, combined with its non-interventionist approach to corporate governance, further mitigated concerns about a hostile takeover or leadership shake-up.

Under Armour’s recent fiscal Q2 results and revised FY26 guidance also contributed to the stock’s momentum. , , . For FY26, , reflecting improved cost management and a shift toward premiumization. The strategy includes focusing on its top 10 products, strengthening direct-to-consumer (DTC) channels, and reducing reliance on promotional sales. While these adjustments have yet to fully reverse the company’s three-year revenue stagnation, the revised guidance signaled progress in stabilizing operations.

However, underlying financial challenges persist. Under Armour’s of 1.88 places it in a “grey area” of financial stress, . S&P Global Ratings has placed the company on CreditWatch with negative implications, citing operational declines and a projected lease-adjusted leverage ratio of 4x for FY26. Additionally, the termination of its long-term partnership with Stephen Curry in 2026, following the Curry 13 shoe launch, raises questions about brand equity and future growth drivers. Analysts remain divided, with UBS upgrading its price target to $8 and Evercore ISI downgrading to $4, reflecting uncertainty about the sustainability of recent gains.

The interplay of Fairfax’s investment, improved fiscal guidance, and market validation of Under Armour’s premiumization strategy created a short-term tailwind for the stock. Yet, the broader context of a 40% annual decline and structural challenges in the athletic apparel sector—compounded by high debt and competitive pressures from Nike and Lululemon—suggests that the rally remains speculative. Investors will need to monitor the company’s ability to execute its DTC-focused turnaround and deliver consistent profitability to sustain the momentum generated by Fairfax’s backing.