Topgolf Callaway Brands (NYSE:MODG) Shares Down 10.2% - Time to Sell?

Key Points

• Topgolf Callaway Brands' stock fell by 10.2%, trading at $8.31, with a significant drop in trading volume compared to its average session.
• Equities research analysts have notably downgraded the stock's rating from "hold" to "sell," with target prices reduced by various firms.
• Despite the recent downturn, the company reported a positive earnings per share of $0.11, beating estimates and generating revenue of $1.09 billion, although year-over-year revenue declined by 4.5%.

Topgolf Callaway Brands Corp. (NYSE:MODG - Get Free Report) fell 10.2% during mid-day trading on Friday . The stock traded as low as $8.31 and last traded at $8.31. 687,257 shares traded hands during trading, a decline of 76% from the average session volume of 2,915,043 shares. The stock had previously closed at $9.25.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the company. Wall Street Zen lowered Topgolf Callaway Brands from a "hold" rating to a "sell" rating in a research note on Sunday, July 6th. JPMorgan Chase & Co. reduced their target price on Topgolf Callaway Brands from $8.00 to $7.00 and set a "neutral" rating on the stock in a research note on Tuesday, May 27th. Truist Financial reduced their target price on Topgolf Callaway Brands from $12.00 to $7.00 and set a "buy" rating on the stock in a research note on Monday, April 14th. Morgan Stanley assumed coverage on Topgolf Callaway Brands in a research note on Friday, July 18th. They issued an "equal weight" rating and a $9.50 target price on the stock. Finally, Cfra reaffirmed a "hold" rating and issued a $9.00 target price on shares of Topgolf Callaway Brands in a research note on Friday, July 11th. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and three have assigned a buy rating to the company. Based on data from MarketBeat, Topgolf Callaway Brands currently has a consensus rating of "Hold" and a consensus price target of $10.14.

Topgolf Callaway Brands Trading Down 8.5%

The stock has a market capitalization of $1.56 billion, a price-to-earnings ratio of -1.07 and a beta of 1.27. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.41 and a current ratio of 2.12. The firm has a fifty day moving average of $8.21 and a 200-day moving average of $7.35.

Topgolf Callaway Brands (NYSE:MODG - Get Free Report) last announced its earnings results on Monday, May 12th. The company reported $0.11 earnings per share for the quarter, beating the consensus estimate of ($0.04) by $0.15. The company had revenue of $1.09 billion during the quarter, compared to the consensus estimate of $1.08 billion. Topgolf Callaway Brands had a positive return on equity of 1.51% and a negative net margin of 34.68%. The company's revenue was down 4.5% on a year-over-year basis. During the same period last year, the firm earned $0.08 earnings per share. As a group, equities analysts predict that Topgolf Callaway Brands Corp. will post 0.16 earnings per share for the current fiscal year.

Insider Activity at Topgolf Callaway Brands

In related news, Director Russell L. Fleischer purchased 30,000 shares of Topgolf Callaway Brands stock in a transaction dated Wednesday, May 14th. The shares were acquired at an average price of $6.41 per share, with a total value of $192,300.00. Following the completion of the transaction, the director owned 116,187 shares of the company's stock, valued at approximately $744,758.67. This trade represents a 34.81% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Adebayo O. Ogunlesi bought 384,731 shares of the business's stock in a transaction on Friday, June 6th. The stock was acquired at an average cost of $6.48 per share, for a total transaction of $2,493,056.88. Following the acquisition, the director directly owned 768,432 shares of the company's stock, valued at $4,979,439.36. The trade was a 100.27% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last three months, insiders acquired 905,284 shares of company stock worth $5,922,500. 2.40% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Topgolf Callaway Brands

A number of hedge funds have recently made changes to their positions in MODG. Public Employees Retirement System of Ohio raised its position in shares of Topgolf Callaway Brands by 24.6% during the 2nd 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 in the last quarter. Boyar Asset Management Inc. raised its holdings in Topgolf Callaway Brands by 1.7% during the first quarter. Boyar Asset Management Inc. now owns 109,984 shares of the company's stock worth $725,000 after purchasing an additional 1,857 shares in the last quarter. Jump Financial LLC raised its holdings in Topgolf Callaway Brands by 3.1% during the first quarter. Jump Financial LLC now owns 75,685 shares of the company's stock worth $499,000 after purchasing an additional 2,265 shares in the last quarter. MetLife Investment Management LLC raised its holdings in Topgolf Callaway Brands by 2.9% during the fourth quarter. MetLife Investment Management LLC now owns 82,820 shares of the company's stock worth $651,000 after purchasing an additional 2,303 shares in the last quarter. Finally, Covestor Ltd raised its holdings in Topgolf Callaway Brands by 26.9% during the first quarter. Covestor Ltd now owns 11,785 shares of the company's stock worth $78,000 after purchasing an additional 2,499 shares in the last quarter. Institutional investors own 84.69% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.