Topgolf Callaway Brands Corp. (NYSE:MODG) Receives Average Rating of "Hold" from Analysts

Key Points

• Topgolf Callaway Brands Corp. has received an average analyst rating of "Hold", with five analysts recommending holding the stock and three suggesting a buy.
• The company's quarterly earnings surpassed expectations, reporting $1.11 billion in revenue and $0.24 EPS, marking a decline in revenue compared to the same quarter last year.
• Recent insider transactions revealed significant sales by executives, including CEO Artie Starrs, who sold over 106,000 shares, indicating a potential shift in insider sentiment towards the stock.

Shares of Topgolf Callaway Brands Corp. (NYSE:MODG - Get Free Report) have been given a consensus rating of "Hold" by the eight brokerages that are covering the stock, Marketbeat Ratings reports. Five investment analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $9.75.

A number of analysts recently weighed in on the company. Wall Street Zen upgraded Topgolf Callaway Brands from a "sell" rating to a "hold" rating in a report on Saturday, August 9th. B. Riley restated a "neutral" rating and issued a $9.50 price objective (up from $7.00) on shares of Topgolf Callaway Brands in a report on Monday, August 11th. Morgan Stanley assumed coverage on Topgolf Callaway Brands in a report on Friday, July 18th. They issued an "equal weight" rating and a $9.50 price objective for the company. JPMorgan Chase & Co. decreased their price objective on Topgolf Callaway Brands from $8.00 to $7.00 and set a "neutral" rating for the company in a report on Tuesday, May 27th. Finally, Cfra restated a "hold" rating and issued a $9.00 price objective on shares of Topgolf Callaway Brands in a report on Friday, July 11th.

Topgolf Callaway Brands Stock Down 0.3%

Shares of MODG opened at $9.27 on Tuesday. Topgolf Callaway Brands has a 52 week low of $5.42 and a 52 week high of $11.28. The stock has a market capitalization of $1.70 billion, a price-to-earnings ratio of -1.14 and a beta of 1.25. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.25 and a current ratio of 1.85. The stock has a fifty day moving average of $9.37 and a 200-day moving average of $7.83.

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

Insider Transactions at Topgolf Callaway Brands

In other Topgolf Callaway Brands news, Director Erik J. Anderson sold 25,704 shares of the stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $9.25, for a total transaction of $237,762.00. Following the completion of the sale, the director directly owned 20,607 shares in the company, valued at approximately $190,614.75. This trade represents a 55.50% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Artie Starrs sold 106,734 shares of the stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $8.64, for a total value of $922,181.76. Following the sale, the chief executive officer owned 105,823 shares of the company's stock, valued at approximately $914,310.72. The trade was a 50.21% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 2.49% of the company's stock.

Institutional Trading of Topgolf Callaway Brands

A number of large investors have recently bought and sold shares of the business. Marshall Wace LLP grew its holdings in Topgolf Callaway Brands by 10,113.7% during the 2nd quarter. Marshall Wace LLP now owns 4,691,786 shares of the company's stock worth $37,769,000 after acquiring an additional 4,645,850 shares during the period. Hill Path Capital LP acquired a new stake in Topgolf Callaway Brands during the 2nd quarter worth about $37,722,000. Long Focus Capital Management LLC grew its holdings in Topgolf Callaway Brands by 44.8% during the 1st quarter. Long Focus Capital Management LLC now owns 2,950,844 shares of the company's stock worth $19,446,000 after acquiring an additional 912,844 shares during the period. Alliancebernstein L.P. grew its holdings in Topgolf Callaway Brands by 7.5% during the 2nd quarter. Alliancebernstein L.P. now owns 2,814,292 shares of the company's stock worth $22,655,000 after acquiring an additional 195,684 shares during the period. Finally, Balyasny Asset Management L.P. grew its holdings in Topgolf Callaway Brands by 36.7% during the 2nd quarter. Balyasny Asset Management L.P. now owns 2,528,734 shares of the company's stock worth $20,356,000 after acquiring an additional 678,822 shares during the period. 84.69% of the stock is currently owned by institutional investors and hedge funds.

About Topgolf Callaway Brands

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.

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