Acushnet (NYSE:GOLF) Shares Down 11.6% - What's Next?

Key Points

• Acushnet shares fell 11.6% to about $91.20 in mid-day trading, with volume more than doubling the average daily level.
• Despite the selloff, the company reported stronger-than-expected quarterly results: EPS of $2.08 versus the $1.63 consensus estimate, while revenue rose 13.8% year over year to $819.95 million.
• Analysts maintain a generally cautious view, with one Buy rating and seven Holds, producing a consensus rating of Hold and a $97.83 price target.

Shares of Acushnet (NYSE:GOLF - Get Free Report) were down 11.6% during mid-day trading on Thursday . The company traded as low as $90.98 and last traded at $91.1980. Approximately 755,587 shares changed hands during mid-day trading, an increase of 115% from the average daily volume of 351,764 shares. The stock had previously closed at $103.15.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the company. Truist Financial increased their price target on Acushnet from $95.00 to $97.00 and gave the company a "hold" rating in a report on Tuesday, May 19th. JPMorgan Chase & Co. lifted their price target on Acushnet from $96.00 to $118.00 and gave the stock a "neutral" rating in a report on Friday, June 26th. Roth Capital set a $87.00 price target on shares of Acushnet in a research report on Thursday, May 7th. Finally, Weiss Ratings raised shares of Acushnet from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, July 24th. One equities research analyst has rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat, Acushnet presently has a consensus rating of "Hold" and a consensus price target of $97.83.

Acushnet Stock Down 11.6%

The company has a market capitalization of $5.34 billion, a PE ratio of 31.85 and a beta of 0.81. The company has a quick ratio of 1.59, a current ratio of 2.87 and a debt-to-equity ratio of 1.36. The firm has a 50-day moving average of $104.93 and a two-hundred day moving average of $98.57.

Acushnet (NYSE:GOLF - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $2.08 EPS for the quarter, beating analysts' consensus estimates of $1.63 by $0.45. Acushnet had a return on equity of 22.95% and a net margin of 6.54%.The company had revenue of $819.95 million for the quarter, compared to the consensus estimate of $788.24 million. During the same quarter in the previous year, the business earned $1.25 earnings per share. The company's revenue for the quarter was up 13.8% on a year-over-year basis. Equities research analysts predict that Acushnet will post 3.75 earnings per share for the current fiscal year.

Insider Transactions at Acushnet

In other Acushnet news, insider Steven Francis Pelisek sold 15,000 shares of the company's stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $91.26, for a total value of $1,368,900.00. Following the transaction, the insider owned 70,512 shares of the company's stock, valued at $6,434,925.12. This represents a 17.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Nicholas N. Mohamed sold 529 shares of Acushnet stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $95.00, for a total transaction of $50,255.00. Following the sale, the insider owned 2,868 shares of the company's stock, valued at approximately $272,460. This represents a 15.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 53.30% of the company's stock.

Institutional Investors Weigh In On Acushnet

A number of institutional investors have recently modified their holdings of the company. Fifth Third Bancorp increased its stake in Acushnet by 36,310.7% during the 1st quarter. Fifth Third Bancorp now owns 27,308 shares of the company's stock worth $2,553,000 after buying an additional 27,233 shares during the period. Louisiana State Employees Retirement System acquired a new stake in shares of Acushnet in the first quarter valued at $1,140,000. Kennedy Capital Management LLC boosted its holdings in Acushnet by 11.5% in the fourth quarter. Kennedy Capital Management LLC now owns 217,803 shares of the company's stock valued at $17,385,000 after purchasing an additional 22,424 shares during the period. M&T Bank Corp boosted its holdings in Acushnet by 668.1% in the fourth quarter. M&T Bank Corp now owns 159,874 shares of the company's stock valued at $12,761,000 after purchasing an additional 139,060 shares during the period. Finally, Capital Research Global Investors grew its stake in Acushnet by 8.5% during the 4th quarter. Capital Research Global Investors now owns 1,465,000 shares of the company's stock worth $116,936,000 after purchasing an additional 115,000 shares in the last quarter. 53.12% of the stock is owned by institutional investors and hedge funds.

Acushnet Company Profile

Acushnet Holdings Corp., traded on the NYSE under the symbol GOLF, is a leading designer, manufacturer and marketer of golf equipment, footwear, apparel and accessories. The company's portfolio encompasses a range of golf lifestyle products, with a focus on innovation, performance and quality for players of all skill levels.

At the core of Acushnet's product lineup is the Titleist brand, globally recognized for its Tour-level golf balls and precision-engineered clubs. FootJoy offers golf shoes, gloves and apparel that blend comfort, style and technical performance, while Scotty Cameron putters and Vokey design wedges cater to players seeking exacting standards in feel and accuracy.

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