Topgolf Callaway Brands (NYSE:MODG) Stock Price Down 7.2% - What's Next?

Key Points

• Topgolf Callaway Brands Corp. shares fell 7.2% during Friday trading, closing at $8.88, with a significant drop in trading volume compared to its average.
• Research analysts have reduced their price targets, with JPMorgan lowering theirs from $8.00 to $7.00, and Truist adjusting from $12.00 to $7.00, maintaining a "neutral" rating overall.
• The company's recent earnings report showed an earnings per share (EPS) of $0.24, exceeding expectations, but revenue declined 4.1% year-over-year to $1.11 billion.

Topgolf Callaway Brands Corp. (NYSE:MODG - Get Free Report) fell 7.2% during trading on Friday . The stock traded as low as $8.83 and last traded at $8.88. 1,775,884 shares changed hands during mid-day trading, a decline of 40% from the average session volume of 2,969,601 shares. The stock had previously closed at $9.56.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on MODG shares. JPMorgan Chase & Co. lowered their price objective on shares of 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 price objective on shares of Topgolf Callaway Brands from $12.00 to $7.00 and set a "buy" rating for the company in a research report on Monday, April 14th. Cfra reissued a "hold" rating and issued a $9.00 price objective on shares of Topgolf Callaway Brands in a research report on Friday, July 11th. Wall Street Zen downgraded shares of Topgolf Callaway Brands from a "hold" rating to a "sell" rating in a report on Sunday, July 6th. Finally, B. Riley started coverage on shares of Topgolf Callaway Brands in a research report on Friday, May 16th. They set a "neutral" rating and a $7.00 price objective for the company. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and three have given a buy rating to the stock. According to MarketBeat.com, Topgolf Callaway Brands presently has an average rating of "Hold" and a consensus target price of $10.14.

Topgolf Callaway Brands Price Performance

The firm has a market capitalization of $1.58 billion, a PE ratio of -1.06 and a beta of 1.26. The company has a debt-to-equity ratio of 0.60, a current ratio of 2.12 and a quick ratio of 1.41. The business's 50 day moving average is $8.46 and its two-hundred day moving average is $7.37.

Topgolf Callaway Brands (NYSE:MODG - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The company reported $0.24 EPS for the quarter, beating the consensus estimate of $0.03 by $0.21. Topgolf Callaway Brands had a positive return on equity of 0.36% and a negative net margin of 36.08%. The firm had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.08 billion. During the same period in the prior year, the company earned $0.42 EPS. The company's revenue was down 4.1% on a year-over-year basis. As a group, research analysts anticipate that Topgolf Callaway Brands Corp. will post 0.16 EPS for the current year.

Insiders Place Their Bets

In other Topgolf Callaway Brands news, Director Adebayo O. Ogunlesi bought 38,782 shares of the firm's stock in a transaction that occurred on Tuesday, June 10th. The stock was bought at an average price of $7.59 per share, for a total transaction of $294,355.38. Following the completion of the acquisition, the director directly owned 845,284 shares in the company, valued at $6,415,705.56. The trade was a 4.81% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Glenn F. Hickey acquired 10,000 shares of the stock in a transaction on Monday, May 19th. The shares were purchased at an average cost of $6.86 per share, with a total value of $68,600.00. Following the transaction, the executive vice president directly owned 10,000 shares of the company's stock, valued at approximately $68,600. This trade represents a ∞ increase in their position. The disclosure for this purchase can be found here. Insiders purchased 905,284 shares of company stock valued at $5,922,500 over the last three months. Company insiders own 2.40% of the company's stock.

Hedge Funds Weigh In On Topgolf Callaway Brands

Several large investors have recently modified their holdings of the stock. Signaturefd LLC raised its holdings in Topgolf Callaway Brands by 1,669.0% in the 2nd quarter. Signaturefd LLC now owns 3,078 shares of the company's stock worth $25,000 after purchasing an additional 2,904 shares during the period. GAMMA Investing LLC bought a new position in shares of Topgolf Callaway Brands in the second quarter worth about $36,000. Sterling Capital Management LLC lifted its position in shares of Topgolf Callaway Brands by 821.5% during the 4th quarter. Sterling Capital Management LLC now owns 4,543 shares of the company's stock valued at $36,000 after buying an additional 4,050 shares in the last quarter. CWM LLC grew its stake in shares of Topgolf Callaway Brands by 124.0% during the 2nd quarter. CWM LLC now owns 4,679 shares of the company's stock valued at $38,000 after acquiring an additional 2,590 shares during the period. Finally, Public Employees Retirement System of Ohio grew its stake 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 valued at $51,000 after acquiring an additional 1,240 shares during the period. Hedge funds and other 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.

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