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Callaway Golf (NYSE:ELY) Shares Gap Up Following Analyst Upgrade

Posted on Tuesday, June 30th, 2020 by MarketBeat

Callaway Golf Co (NYSE:ELY) gapped up before the market opened on Tuesday after SunTrust Banks raised their price target on the stock from $16.00 to $20.00. The stock had previously closed at $18.78, but opened at $17.69. SunTrust Banks currently has a buy rating on the stock. Callaway Golf shares last traded at $17.58, with a volume of 21,285 shares traded.

Several other research firms have also issued reports on ELY. Cowen increased their price target on shares of Callaway Golf from $18.00 to $22.00 in a research report on Wednesday, June 10th. Compass Point cut their target price on shares of Callaway Golf from $20.00 to $17.50 and set a "buy" rating on the stock in a research report on Monday, May 11th. ValuEngine upgraded shares of Callaway Golf from a "sell" rating to a "hold" rating in a research report on Tuesday, March 24th. Roth Capital restated a "buy" rating and issued a $21.00 target price on shares of Callaway Golf in a research report on Thursday, March 5th. Finally, Raymond James raised their target price on shares of Callaway Golf from $14.50 to $17.50 and gave the company an "outperform" rating in a research report on Tuesday, June 16th. Two equities research analysts have rated the stock with a hold rating and ten have given a buy rating to the company's stock. Callaway Golf presently has an average rating of "Buy" and an average price target of $20.82.

A number of hedge funds and other institutional investors have recently made changes to their positions in ELY. Alliancebernstein L.P. increased its stake in Callaway Golf by 11.4% in the first quarter. Alliancebernstein L.P. now owns 5,285,598 shares of the company's stock valued at $54,019,000 after purchasing an additional 541,991 shares in the last quarter. TimesSquare Capital Management LLC increased its stake in Callaway Golf by 73.0% in the first quarter. TimesSquare Capital Management LLC now owns 3,352,580 shares of the company's stock valued at $34,263,000 after purchasing an additional 1,414,470 shares in the last quarter. State Street Corp increased its stake in Callaway Golf by 6.5% in the first quarter. State Street Corp now owns 2,829,537 shares of the company's stock valued at $28,918,000 after purchasing an additional 171,480 shares in the last quarter. Goldman Sachs Group Inc. increased its stake in Callaway Golf by 23.0% in the fourth quarter. Goldman Sachs Group Inc. now owns 2,775,728 shares of the company's stock valued at $58,846,000 after purchasing an additional 518,647 shares in the last quarter. Finally, Franklin Resources Inc. increased its stake in Callaway Golf by 14,433.5% in the first quarter. Franklin Resources Inc. now owns 1,671,787 shares of the company's stock valued at $17,086,000 after purchasing an additional 1,660,284 shares in the last quarter. 95.78% of the stock is owned by institutional investors and hedge funds.

The company has a quick ratio of 0.80, a current ratio of 1.44 and a debt-to-equity ratio of 0.83. The stock has a market capitalization of $1.66 billion, a P/E ratio of 29.00 and a beta of 1.97. The firm's 50 day simple moving average is $15.45 and its two-hundred day simple moving average is $16.24.

Callaway Golf (NYSE:ELY) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.30 by $0.02. The firm had revenue of $442.28 million during the quarter, compared to analysts' expectations of $440.70 million. Callaway Golf had a net margin of 3.67% and a return on equity of 9.95%. The business's revenue was down 14.3% on a year-over-year basis. During the same period last year, the company earned $0.63 earnings per share. As a group, equities research analysts expect that Callaway Golf Co will post 0.29 earnings per share for the current year.

The company also recently declared a quarterly dividend, which was paid on Wednesday, June 17th. Investors of record on Wednesday, May 27th were issued a dividend of $0.01 per share. This represents a $0.04 annualized dividend and a yield of 0.23%. The ex-dividend date of this dividend was Tuesday, May 26th. Callaway Golf's dividend payout ratio (DPR) is presently 3.64%.

Callaway Golf Company Profile (NYSE:ELY)

Callaway Golf Company, together with its subsidiaries, designs, manufactures, and sells golf clubs, golf balls, golf bags, and other golf-related accessories. The company operates through three segments: Golf Clubs; Golf Balls; and Gear, Accessories and Other. The Golf Clubs segment provides golf drivers and fairway woods, hybrids, irons and wedges, putters, packaged sets, and pre-owned golf clubs.

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