Topgolf Callaway Brands (NYSE:MODG) Shares Gap Up - Time to Buy?

Key Points

• Topgolf Callaway Brands shares opened at $9.90 after a gap up from the previous close of $9.51, with current trading around $9.95.
• Analysts' ratings for the stock show a consensus of "Hold", with price targets ranging from $9.50 to $10.00.
• CEO Artie Starrs sold over 106,000 shares at an average price of $8.64, indicating a significant decrease in his ownership stake of the company.

Shares of Topgolf Callaway Brands Corp. (NYSE:MODG - Get Free Report) gapped up before the market opened on Wednesday . The stock had previously closed at $9.51, but opened at $9.90. Topgolf Callaway Brands shares last traded at $9.95, with a volume of 363,223 shares traded.

Analyst Ratings Changes

A number of equities analysts recently issued reports on the company. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Topgolf Callaway Brands in a report on Wednesday, October 8th. Wall Street Zen raised Topgolf Callaway Brands from a "sell" rating to a "hold" rating in a report on Saturday, August 9th. Morgan Stanley began coverage on Topgolf Callaway Brands in a research note on Friday, July 18th. They set an "equal weight" rating and a $9.50 price target on the stock. B. Riley reiterated a "neutral" rating and issued a $9.50 target price (up from $7.00) on shares of Topgolf Callaway Brands in a research note on Monday, August 11th. Finally, UBS Group began coverage on Topgolf Callaway Brands in a report on Friday, October 17th. They issued a "neutral" rating and a $10.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $9.78.

Topgolf Callaway Brands Stock Performance

The company has a market capitalization of $1.82 billion, a price-to-earnings ratio of -1.22 and a beta of 1.24. The stock has a fifty day moving average price of $9.42 and a two-hundred day moving average price of $8.24. The company has a quick ratio of 1.25, a current ratio of 1.85 and a debt-to-equity ratio of 0.48.

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

Insiders Place Their Bets

In other news, CEO Artie Starrs sold 106,734 shares of the business's stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $8.64, for a total value of $922,181.76. Following the completion of the transaction, the chief executive officer directly owned 105,823 shares of the company's stock, valued at $914,310.72. The trade was a 50.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, 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 value of $237,762.00. Following the transaction, the director owned 20,607 shares in the company, valued at $190,614.75. This trade represents a 55.50% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 2.49% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. Novem Group acquired a new position in shares of Topgolf Callaway Brands in the first quarter worth about $538,000. Inspire Investing LLC acquired a new position in shares of Topgolf Callaway Brands in the first quarter worth about $346,000. Fox Run Management L.L.C. acquired a new position in shares of Topgolf Callaway Brands in the first quarter worth about $265,000. Triumph Capital Management raised its stake in Topgolf Callaway Brands by 389.9% during the first quarter. Triumph Capital Management now owns 131,437 shares of the company's stock valued at $866,000 after buying an additional 104,605 shares in the last quarter. Finally, EntryPoint Capital LLC acquired a new stake in Topgolf Callaway Brands during the first quarter valued at approximately $394,000. Institutional investors and hedge funds own 84.69% of the company's stock.

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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