Topgolf Callaway Brands (NYSE:MODG) Shares Gap Up Following Earnings Beat

Key Points

• Topgolf Callaway Brands shares experienced a significant increase, opening at $9.71 after closing at $8.79, following a quarterly earnings report that beat expectations.
• The company reported earnings of $0.24 per share, surpassing estimates of $0.03, along with a revenue of $1.11 billion, despite a year-over-year decline of 4.1% in revenue.
• Several analysts have adjusted their price targets for the stock, with the average target now at $10.14, while the stock has received a mix of ratings, including sell, hold, and buy.

Topgolf Callaway Brands Corp. (NYSE:MODG - Get Free Report) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $8.79, but opened at $9.71. Topgolf Callaway Brands shares last traded at $9.75, with a volume of 1,044,499 shares traded.

The company reported $0.24 EPS for the quarter, topping the consensus estimate of $0.03 by $0.21. The firm had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.08 billion. Topgolf Callaway Brands had a positive return on equity of 1.51% and a negative net margin of 34.68%. Topgolf Callaway Brands's revenue for the quarter was down 4.1% on a year-over-year basis. During the same period in the previous year, the company posted $0.42 EPS.

Analysts Set New Price Targets

MODG has been the topic of several recent analyst reports. JPMorgan Chase & Co. cut their price target 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. B. Riley initiated coverage on Topgolf Callaway Brands in a research report on Friday, May 16th. They set a "neutral" rating and a $7.00 price target on the stock. Morgan Stanley started coverage on Topgolf Callaway Brands in a research report on Friday, July 18th. They set an "equal weight" rating and a $9.50 price target on the stock. Wall Street Zen lowered Topgolf Callaway Brands from a "hold" rating to a "sell" rating in a report on Sunday, July 6th. Finally, Truist Financial decreased their price target on Topgolf Callaway Brands from $12.00 to $7.00 and set a "buy" rating for the company in a research note on Monday, April 14th. Two research analysts have rated the stock with a sell rating, eight have given a hold rating and three have assigned a buy rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $10.14.

Insiders Place Their Bets

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

Institutional Trading of Topgolf Callaway Brands

Several hedge funds and other institutional investors have recently modified their holdings of MODG. Alliancebernstein L.P. raised its holdings in shares of Topgolf Callaway Brands by 97.6% during the fourth quarter. Alliancebernstein L.P. now owns 2,152,565 shares of the company's stock worth $16,919,000 after acquiring an additional 1,063,033 shares in the last quarter. Long Focus Capital Management LLC grew its position in shares of Topgolf Callaway Brands by 44.8% in the first quarter. Long Focus Capital Management LLC now owns 2,950,844 shares of the company's stock valued at $19,446,000 after purchasing an additional 912,844 shares during the last quarter. Ameriprise Financial Inc. grew its position in Topgolf Callaway Brands by 57.8% during the fourth quarter. Ameriprise Financial Inc. now owns 2,086,700 shares of the company's stock worth $16,401,000 after buying an additional 764,322 shares in the last quarter. Claar Advisors LLC acquired a new stake in Topgolf Callaway Brands during the fourth quarter worth about $4,716,000. Finally, Invesco Ltd. grew its position in Topgolf Callaway Brands by 41.9% during the fourth quarter. Invesco Ltd. now owns 1,591,742 shares of the company's stock worth $12,511,000 after buying an additional 469,728 shares in the last quarter. 84.69% of the stock is currently owned by hedge funds and other institutional investors.

Topgolf Callaway Brands Trading Up 10.5%

The firm has a market capitalization of $1.79 billion, a price-to-earnings ratio of -1.23 and a beta of 1.26. The business has a 50-day moving average of $8.40 and a two-hundred day moving average of $7.36. The company has a quick ratio of 1.41, a current ratio of 2.12 and a debt-to-equity ratio of 0.60.

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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