B. Riley Reiterates Neutral Rating for Topgolf Callaway Brands (NYSE:MODG)

Key Points

• B. Riley has increased the target price for Topgolf Callaway Brands (NYSE:MODG) from $7.00 to $9.50, indicating a potential upside of 10.59% from the previous closing price.
• The stock has recently faced mixed analyst opinions, with a consensus rating of "Hold" and an average price target of $10.00.
• Topgolf Callaway Brands reported earnings of $0.24 per share for the last quarter, significantly exceeding analyst expectations of $0.03, despite a 4.1% decline in revenue year-over-year.

Topgolf Callaway Brands (NYSE:MODG - Get Free Report)'s stock had its "neutral" rating reissued by investment analysts at B. Riley in a note issued to investors on Monday, Marketbeat Ratings reports. They currently have a $9.50 target price on the stock, up from their prior target price of $7.00. B. Riley's target price would indicate a potential upside of 9.51% from the stock's current price.

Several other brokerages have also recently commented on MODG. JPMorgan Chase & Co. reduced their price objective on shares of Topgolf Callaway Brands from $8.00 to $7.00 and set a "neutral" rating for the company in a research note on Tuesday, May 27th. Truist Financial decreased their target price on Topgolf Callaway Brands from $12.00 to $7.00 and set a "buy" rating on the stock in a research report on Monday, April 14th. Cfra reiterated a "hold" rating and set a $9.00 target price on shares of Topgolf Callaway Brands in a research report on Friday, July 11th. Wall Street Zen upgraded shares of Topgolf Callaway Brands from a "sell" rating to a "hold" rating in a research report on Saturday. Finally, Morgan Stanley started coverage on shares of Topgolf Callaway Brands in a research report on Friday, July 18th. They set an "equal weight" rating and a $9.50 target price for the company. One analyst has rated the stock with a sell rating, eight have assigned a hold rating and three have issued a buy rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $10.00.

Topgolf Callaway Brands Stock Performance

Shares of MODG stock traded up $0.48 during mid-day trading on Monday, hitting $8.68. The stock had a trading volume of 808,670 shares, compared to its average volume of 2,965,592. Topgolf Callaway Brands has a fifty-two week low of $5.42 and a fifty-two week high of $12.03. The firm has a market cap of $1.60 billion, a PE ratio of -1.07 and a beta of 1.26. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.85 and a quick ratio of 1.25. The company's 50-day simple moving average is $8.55 and its 200-day simple moving average is $7.36.

Topgolf Callaway Brands (NYSE:MODG - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $0.24 EPS for the quarter, topping the consensus estimate of $0.03 by $0.21. Topgolf Callaway Brands had a negative net margin of 36.08% and a positive return on equity of 0.37%. The company had revenue of $1.11 billion during the quarter, compared to analysts' expectations of $1.08 billion. During the same quarter last year, the business earned $0.42 EPS. The business's revenue was down 4.1% on a year-over-year basis. Sell-side analysts anticipate that Topgolf Callaway Brands will post 0.16 earnings per share for the current year.

Insider Activity

In other Topgolf Callaway Brands news, Director Adebayo O. Ogunlesi bought 38,782 shares of the company's stock in a transaction that occurred on Tuesday, June 10th. The stock was purchased at an average cost of $7.59 per share, for a total transaction of $294,355.38. Following the completion of the purchase, the director owned 845,284 shares of the company's stock, valued at $6,415,705.56. This trade represents a 4.81% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Oliver G. Brewer III bought 20,000 shares of the stock in a transaction that occurred on Wednesday, May 14th. The stock was bought at an average price of $6.40 per share, with a total value of $128,000.00. Following the completion of the acquisition, the chief executive officer owned 1,009,297 shares of the company's stock, valued at $6,459,500.80. This trade represents a 2.02% increase in their position. The disclosure for this purchase can be found here. In the last ninety days, insiders have acquired 905,284 shares of company stock valued at $5,922,500. 2.49% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Topgolf Callaway Brands

Institutional investors have recently bought and sold shares of the stock. Signaturefd LLC grew its holdings in Topgolf Callaway Brands by 1,669.0% in the second quarter. Signaturefd LLC now owns 3,078 shares of the company's stock valued at $25,000 after purchasing an additional 2,904 shares during the period. Sterling Capital Management LLC grew its stake in Topgolf Callaway Brands by 821.5% during the fourth quarter. Sterling Capital Management LLC now owns 4,543 shares of the company's stock worth $36,000 after buying an additional 4,050 shares during the period. GAMMA Investing LLC purchased a new stake in Topgolf Callaway Brands during the second quarter worth approximately $36,000. CWM LLC grew its stake in Topgolf Callaway Brands by 124.0% during the second quarter. CWM LLC now owns 4,679 shares of the company's stock worth $38,000 after buying an additional 2,590 shares during the period. Finally, Public Employees Retirement System of Ohio grew its stake in Topgolf Callaway Brands by 24.6% during the second quarter. Public Employees Retirement System of Ohio now owns 6,275 shares of the company's stock worth $51,000 after buying an additional 1,240 shares during the period. 84.69% of the stock is currently owned by hedge funds and other institutional investors.

Topgolf Callaway Brands Company Profile

Topgolf Callaway Brands Corp. designs, manufactures, and sells golf equipment, golf and lifestyle apparel, and other accessories in the United States, Europe, Asia, and Internationally. The Topgolf segment operates Topgolf venues equipped with technology-enabled hitting bays, bars, dining areas, and event spaces, as well as Toptracer ball-flight tracking technology; and World Golf Tour digital golf game.