Topgolf Callaway Brands (NYSE:CALY) Stock Breaks Above 50-Day Moving Average - Should You Sell?

Key Points

• CALY shares rose above their 50-day moving average, reaching $15.19 versus the $14.73 average, while remaining below the 200-day average of $15.65.
• Analyst sentiment is mixed: the stock carries an overall “Hold” rating, with an average price target of $19.83. Recent targets range from $19 to $22, while Goldman Sachs maintained a neutral view.
• The company beat quarterly EPS estimates ($0.39 versus $0.35), but revenue fell 44.9% year over year to $612.2 million. Insiders sold about $1.8 million of shares over the past 90 days, while institutional investors own 84.69% of the stock.

Topgolf Callaway Brands Corp. (NYSE:CALY - Get Free Report)'s stock price passed above its 50-day moving average during trading on Thursday. The stock has a 50-day moving average of $14.73 and traded as high as $15.19. Topgolf Callaway Brands shares last traded at $15.1550, with a volume of 1,369,159 shares traded.

Analysts Set New Price Targets

CALY has been the subject of several research analyst reports. The Goldman Sachs Group raised their price target on Topgolf Callaway Brands from $17.00 to $19.00 and gave the company a "neutral" rating in a report on Wednesday, August 5th. Weiss Ratings raised Topgolf Callaway Brands from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, October 8th. Wall Street Zen cut Topgolf Callaway Brands from a "buy" rating to a "hold" rating in a report on Saturday, October 10th. KeyCorp increased their target price on Topgolf Callaway Brands from $19.00 to $22.00 and gave the company an "overweight" rating in a research report on Wednesday, August 5th. Finally, Truist Financial raised their target price on shares of Topgolf Callaway Brands from $19.00 to $20.00 and gave the company a "buy" rating in a report on Tuesday, September 1st. Three analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, Topgolf Callaway Brands currently has an average rating of "Hold" and an average target price of $19.83.

Topgolf Callaway Brands Stock Performance

The business's fifty day moving average price is $14.73 and its two-hundred day moving average price is $15.65. The stock has a market capitalization of $2.71 billion, a P/E ratio of 35.24 and a beta of 0.96.

Topgolf Callaway Brands (NYSE:CALY - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $0.39 EPS for the quarter, topping the consensus estimate of $0.35 by $0.04. Topgolf Callaway Brands had a return on equity of 5.86% and a net margin of 3.37%. The company had revenue of $612.20 million during the quarter. The company's quarterly revenue was down 44.9% compared to the same quarter last year. As a group, analysts forecast that Topgolf Callaway Brands Corp. will post 0.75 earnings per share for the current year.

Insider Activity at Topgolf Callaway Brands

In other news, CEO Oliver Brewer, III sold 1,400 shares of the firm's stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $18.00, for a total value of $25,200.00. Following the completion of the sale, the chief executive officer directly owned 200,983 shares of the company's stock, valued at $3,617,694. This trade represents a 0.69% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Glenn Hickey sold 28,843 shares of Topgolf Callaway Brands stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $18.74, for a total value of $540,517.82. Following the completion of the transaction, the executive vice president owned 72,239 shares of the company's stock, valued at approximately $1,353,758.86. This trade represents a 28.53% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 97,717 shares of company stock valued at $1,800,492 over the last ninety days. Corporate insiders own 2.91% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Wellington Management Group LLP purchased a new position in shares of Topgolf Callaway Brands during the 2nd quarter worth about $268,370,000. O Keefe Stevens Advisory Inc. lifted its stake in Topgolf Callaway Brands by 2.4% in the third quarter. O Keefe Stevens Advisory Inc. now owns 1,217,521 shares of the company's stock worth $17,155,000 after purchasing an additional 28,798 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new stake in Topgolf Callaway Brands in the second quarter worth about $6,239,000. Engineers Gate Manager LP purchased a new position in shares of Topgolf Callaway Brands during the second quarter valued at approximately $5,243,000. Finally, Squarepoint Ops LLC purchased a new position in shares of Topgolf Callaway Brands during the second quarter valued at approximately $3,854,000. 84.69% of the stock is owned by hedge funds and other institutional investors.

About Topgolf Callaway Brands

Topgolf Callaway Brands is a golf and active-lifestyle company formed through Callaway Golf Company's acquisition of Topgolf, which was completed in 2021. The company has combined traditional golf equipment and apparel operations with Topgolf's technology-enabled entertainment venues.

Its golf portfolio has included Callaway and Odyssey golf clubs, golf balls, wedges, putters and accessories, along with apparel and lifestyle products sold under brands such as TravisMathew and OGIO. Topgolf venues provide golf entertainment, food and beverage service, event hosting and digitally supported play for both experienced golfers and newcomers.

Based in Carlsbad, California, the company has served customers through sporting-goods retailers, specialty golf shops, mass merchants, e-commerce platforms and direct-to-consumer channels.

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