Topgolf Callaway Brands (NYSE:MODG) Trading Down 7.2% - Here's Why

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% on Friday . The company traded as low as $8.83 and last traded at $8.88. 1,775,884 shares were traded during trading, a decline of 40% from the average session volume of 2,969,601 shares. The stock had previously closed at $9.56.

Analyst Ratings Changes

A number of brokerages have weighed in on MODG. Cfra reaffirmed a "hold" rating and set a $9.00 target price on shares of Topgolf Callaway Brands in a research report on Friday, July 11th. B. Riley reiterated a "neutral" rating and issued a $9.50 price target (up from $7.00) on shares of Topgolf Callaway Brands in a report on Monday. 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 report on Tuesday, May 27th. Wall Street Zen upgraded Topgolf Callaway Brands from a "sell" rating to a "hold" rating in a report on Saturday. Finally, 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 target price on the stock. One research analyst has rated the stock with a sell rating, eight have given a hold rating and three have assigned a buy rating to the stock. Based on data from MarketBeat, Topgolf Callaway Brands presently has a consensus rating of "Hold" and a consensus target price of $10.00.

Topgolf Callaway Brands Stock Up 5.8%

The company has a market cap of $1.70 billion, a price-to-earnings ratio of -1.14 and a beta of 1.26. The company has a current ratio of 1.85, a quick ratio of 1.25 and a debt-to-equity ratio of 0.48. The business has a fifty day moving average of $8.60 and a two-hundred day moving average of $7.37.

Topgolf Callaway Brands (NYSE:MODG - Get Free Report) last announced its 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. Topgolf Callaway Brands had a positive return on equity of 0.37% and a negative net margin of 36.08%. The business had revenue of $1.11 billion during the quarter, compared to analysts' expectations of $1.08 billion. During the same quarter in the prior year, the firm earned $0.42 earnings per share. The business's revenue was down 4.1% compared to the same quarter last year. As a group, equities analysts anticipate that Topgolf Callaway Brands Corp. will post 0.16 EPS 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 that occurred on 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 transaction, the director owned 20,607 shares of the company's stock, valued at $190,614.75. This represents a 55.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Adebayo O. Ogunlesi bought 384,731 shares of Topgolf Callaway Brands stock in a transaction on Friday, June 6th. The shares were purchased at an average cost of $6.48 per share, with a total value of $2,493,056.88. Following the acquisition, the director directly owned 768,432 shares of the company's stock, valued at approximately $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. Insiders acquired 855,284 shares of company stock worth $5,602,200 over the last three months. 2.49% of the stock is owned by insiders.

Hedge Funds 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 grew its position in shares of Topgolf Callaway Brands by 24.6% in the second quarter. Public Employees Retirement System of Ohio now owns 6,275 shares of the company's stock valued at $51,000 after purchasing an additional 1,240 shares in the last quarter. Boyar Asset Management Inc. grew its position in shares of Topgolf Callaway Brands by 1.7% in the first quarter. Boyar Asset Management Inc. now owns 109,984 shares of the company's stock valued at $725,000 after purchasing an additional 1,857 shares in the last quarter. Jump Financial LLC grew its position in shares of Topgolf Callaway Brands by 3.1% in the first quarter. Jump Financial LLC now owns 75,685 shares of the company's stock valued at $499,000 after purchasing an additional 2,265 shares in the last quarter. MetLife Investment Management LLC grew its position in Topgolf Callaway Brands by 2.9% in the fourth quarter. MetLife Investment Management LLC now owns 82,820 shares of the company's stock worth $651,000 after acquiring an additional 2,303 shares during the period. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its stake in Topgolf Callaway Brands by 7.2% during the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 36,326 shares of the company's stock worth $292,000 after purchasing an additional 2,453 shares in the last quarter. 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.