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Under Armour Stock Surges as Fairfax Financial Increases Holdings

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Ellis Hobbs Fact-checked by Matt Monaco
Updated 1/2/2026, 4:45 pm ET 1/2/2026, 4:45 pm ET | 5 min 5 min read
Under Armour Stock Surges as Fairfax Financial Increases Holdings Thumbnail

Under Armour Inc. Class C stocks have been trading up by 5.72 percent amid strong quarterly results boosting investor confidence.

Consumer Discretionary industry expert:

Analyst sentiment – positive

Under Armour (UA) currently demonstrates a weak market position with profitability ratios in the negative, such as an EBIT margin of -0.6% and a gross margin of 47.4%. Despite a healthy revenue stream of $5.16 billion, the bottom line is strained with a profit margin of -1.74%. This financial snapshot is compounded by a high debt to equity ratio of 1.02 and a negative free cash flow of -$90.32 million, indicating significant financial vulnerabilities. These metrics suggest UA is struggling to convert its revenue into sustainable profit, posing challenges in capital management and operational efficiency.

The recent technical analysis reveals a strong bullish trend in Under Armour’s stock prices. An upward movement is reflected from $4.52 closing on 251229 to $5.0748 on 260102. This bullish bias is supported by rising volumes, particularly during the transition between December 30 and January 2, signaling potential accumulation. Short-term traders might consider entering long positions near the support level of $4.85 with a target price approaching the psychological resistance of $5.20. Furthermore, the upward momentum suggests the use of trailing stops to lock in gains amid rising volatility.

Recent developments, including Under Armour’s inclusion in the S&P 600 and significant stock acquisition by a major investor, provide a positive catalyst. These factors might instigate further interest and provide momentum within the Consumer Discretionary sector, even as UA lags the broader Apparel & Luxury benchmarks. With a prominent investor like V. Prem Watsa boosting share price, investors should monitor UA’s next earnings for affirmation of financial improvements. A key price target to watch is $5.60, indicating room for further appreciation. The alignment with favorable indices suggests an optimistic outlook, contingent on maintaining earnings momentum.

Candlestick Chart

Weekly Update Dec 29 – Jan 02, 2026: On Friday, January 02, 2026 Under Armour Inc. Class C stock [NYSE: UA] is trending up by 5.72%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Under Armour has recently seen fluctuations in its stock price, reflecting intricate market movements. On December 29, 2025, the stock closed at $4.52, and within a few days, notably by January 2, 2026, it rallied to $5.0748. This upward trajectory within a short span reflects investor confidence, partly fueled by significant acquisitions by key stakeholders like Fairfax Financial. The company’s profitability remains a mixed bag with an EBIT margin of -0.6% and a troubling profit margin of -1.74%. Despite these challenges, Under Armour’s gross margin at 47.4% indicates potential efficiency in production and direct sales.

More Breaking News

The ratio metrics underline a cautious tale; with a debt to equity ratio of 1.02, Under Armour’s leverage is managed, albeit with careful financial juggling. The revenue per share stands commendably strong at $25.74, accentuating the leverage on sales potential, even as the broader revenue margins narrow. Financial strengths like a current ratio of 1.7 offer a buffer, suggesting that the company can meet short-term obligations despite ongoing financial strains. Intriguingly, market valuation measures, particularly the price to sales ratio at 0.38, reflect a stock potentially undervalued in comparison to revenue output, providing a ripe opportunity for strategic investors.

Conclusion

The upward stock movement observed with Under Armour signifies a positive shift in market perception, fueled by strategic acquisitions and robust market indicators. Despite struggling profit margins, Under Armour displays commendable potential in operational performance, bolstered by recent investments. As 2026 dawns, traders show renewed confidence, hinting at potential growth trajectories if the company continues to capitalize on its tactical advantages and market positioning. As millionaire penny stock trader and teacher Tim Sykes says, “Cut losses quickly, let profits ride, and don’t overtrade.” This insight underlines the need for traders to manage their strategies wisely. This optimism, complemented by strategic inclusion in pivotal indices, posits Under Armour as a stock to watch in the upcoming quarters.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”