AREX Capital Management LP Acquires 100,000 Shares of Topgolf Callaway Brands Corp. $MODG

Key Points

• AREX Capital Management LP increased its holdings in Topgolf Callaway Brands Corp. by 16.7%, making it their 3rd largest position, with 698,800 shares valued at approximately $4.6 million.
• Several institutional investors significantly boosted their stakes in Topgolf Callaway Brands, including PDT Partners LLC, which increased its stake by 3,281.5% during the first quarter.
• The company's latest earnings report showed a net margin of -36.08% despite a revenue of $1.11 billion, reflecting a 4.1% year-over-year decline.

AREX Capital Management LP raised its stake in Topgolf Callaway Brands Corp. (NYSE:MODG - Free Report) by 16.7% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 698,800 shares of the company's stock after purchasing an additional 100,000 shares during the period. Topgolf Callaway Brands accounts for 9.4% of AREX Capital Management LP's holdings, making the stock its 3rd biggest holding. AREX Capital Management LP owned 0.38% of Topgolf Callaway Brands worth $4,605,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Wealth Enhancement Advisory Services LLC bought a new stake in Topgolf Callaway Brands during the 4th quarter worth approximately $289,000. Novem Group bought a new stake in shares of Topgolf Callaway Brands in the first quarter worth approximately $538,000. Dynamic Advisor Solutions LLC purchased a new position in Topgolf Callaway Brands during the first quarter valued at approximately $66,000. Fox Run Management L.L.C. purchased a new position in shares of Topgolf Callaway Brands in the first quarter worth $265,000. Finally, Triumph Capital Management increased its position in Topgolf Callaway Brands by 389.9% during the first quarter. Triumph Capital Management now owns 131,437 shares of the company's stock valued at $866,000 after acquiring an additional 104,605 shares during the last quarter. 84.69% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Topgolf Callaway Brands

In other news, Director Adebayo O. Ogunlesi bought 38,782 shares of the business's stock in a transaction that occurred on Tuesday, June 10th. The stock was acquired 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 SEC, which is accessible through this hyperlink. Also, Director Erik J. Anderson sold 25,704 shares of the stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $9.25, for a total value of $237,762.00. Following the completion of the transaction, the director directly owned 20,607 shares of the company's stock, valued at approximately $190,614.75. The trade was a 55.50% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 2.40% of the company's stock.

Topgolf Callaway Brands Stock Performance

Shares of MODG traded up $0.15 during mid-day trading on Monday, hitting $9.38. The stock had a trading volume of 809,796 shares, compared to its average volume of 2,907,144. The company has a market cap of $1.72 billion, a PE ratio of -1.16 and a beta of 1.25. The company's fifty day simple moving average is $9.25 and its two-hundred day simple moving average is $7.61. The company has a quick ratio of 1.25, a current ratio of 1.85 and a debt-to-equity ratio of 0.48. Topgolf Callaway Brands Corp. has a fifty-two week low of $5.42 and a fifty-two week high of $11.28.

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

Analyst Ratings Changes

MODG has been the subject of several analyst reports. B. Riley reissued a "neutral" rating and set a $9.50 price target (up from $7.00) on shares of Topgolf Callaway Brands in a research report on Monday, August 11th. Wall Street Zen raised Topgolf Callaway Brands from a "sell" rating to a "hold" rating in a research report on Saturday, August 9th. Cfra restated a "hold" rating and set a $9.00 price target on shares of Topgolf Callaway Brands in a research note on Friday, July 11th. JPMorgan Chase & Co. cut their price objective on Topgolf Callaway Brands from $8.00 to $7.00 and set a "neutral" rating for the company in a research report on Tuesday, May 27th. Finally, Morgan Stanley initiated coverage on Topgolf Callaway Brands in a research note on Friday, July 18th. They set an "equal weight" rating and a $9.50 price objective on the stock. Three research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $10.00.

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.