Topgolf Callaway Brands (NYSE:MODG) Trading Up 10.6% - Here's Why

Key Points

• Topgolf Callaway Brands stock increased by 10.6%, with shares trading at $9.66 after previously closing at $8.73.
• Analysts have mixed ratings on the stock, with the consensus rating as "Hold" and an average price target of $10.00.
• In the latest earnings report, the company reported earnings per share of $0.24, surpassing estimates, but revenue decreased by 4.1% year-over-year.

Topgolf Callaway Brands Corp. (NYSE:MODG - Get Free Report)'s stock price shot up 10.6% during trading on Wednesday . The stock traded as high as $9.56 and last traded at $9.66. 1,162,931 shares were traded during mid-day trading, a decline of 61% from the average session volume of 2,968,053 shares. The stock had previously closed at $8.73.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the stock. Wall Street Zen raised shares of Topgolf Callaway Brands from a "sell" rating to a "hold" rating in a report on Saturday. B. Riley restated a "neutral" rating and set a $9.50 price target (up from $7.00) on shares of Topgolf Callaway Brands in a research report on Monday. JPMorgan Chase & Co. reduced their price target on shares of Topgolf Callaway Brands from $8.00 to $7.00 and set a "neutral" rating for the company in a research report on Tuesday, May 27th. Morgan Stanley began coverage on shares of Topgolf Callaway Brands in a research report on Friday, July 18th. They set an "equal weight" rating and a $9.50 price target for the company. Finally, Cfra restated a "hold" rating and set a $9.00 price target on shares of Topgolf Callaway Brands in a research report on Friday, July 11th. One investment analyst has rated the stock with a sell rating, eight have given a hold rating and three have given a buy rating to the company's stock. According to MarketBeat.com, Topgolf Callaway Brands currently has a consensus rating of "Hold" and an average target price of $10.00.

Topgolf Callaway Brands Trading Up 10.7%

The company has a quick ratio of 1.25, a current ratio of 1.85 and a debt-to-equity ratio of 0.48. The stock's fifty day moving average price is $8.60 and its two-hundred day moving average price is $7.37. The company has a market capitalization of $1.78 billion, a PE ratio of -1.19 and a beta of 1.26.

Topgolf Callaway Brands (NYSE:MODG - Get Free Report) last posted its 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. The company had revenue of $1.11 billion during the quarter, compared to analyst estimates of $1.08 billion. Topgolf Callaway Brands had a negative net margin of 36.08% and a positive return on equity of 0.37%. Topgolf Callaway Brands's revenue for the quarter was down 4.1% on a year-over-year basis. During the same period in the prior year, the business posted $0.42 earnings per share. Sell-side analysts anticipate that Topgolf Callaway Brands Corp. will post 0.16 earnings per share for the current year.

Insider Activity at Topgolf Callaway Brands

In other Topgolf Callaway Brands news, Director Erik J. Anderson sold 25,704 shares of the firm's stock in a transaction that occurred on Friday, August 8th. The shares were 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 approximately $190,614.75. This trade represents a 55.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Glenn F. Hickey bought 10,000 shares of the firm's stock in a transaction on Monday, May 19th. The shares were acquired at an average cost of $6.86 per share, with a total value of $68,600.00. Following the purchase, the executive vice president directly owned 10,000 shares of the company's stock, valued at approximately $68,600. This represents a ∞ increase in their position. The disclosure for this purchase can be found here. Over the last ninety days, insiders have acquired 855,284 shares of company stock valued at $5,602,200. 2.49% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Topgolf Callaway Brands

Institutional investors and hedge funds have recently made changes to their positions in the business. Norges Bank bought a new stake in shares of Topgolf Callaway Brands during the second quarter valued at approximately $132,000. Prudential Financial Inc. increased its position in shares of Topgolf Callaway Brands by 4.7% during the second quarter. Prudential Financial Inc. now owns 148,431 shares of the company's stock valued at $1,263,000 after acquiring an additional 6,713 shares in the last quarter. American Century Companies Inc. grew its position in Topgolf Callaway Brands by 448.3% in the 2nd quarter. American Century Companies Inc. now owns 1,314,939 shares of the company's stock worth $10,585,000 after purchasing an additional 1,075,115 shares during the period. Franklin Resources Inc. grew its position in Topgolf Callaway Brands by 33.8% in the 2nd quarter. Franklin Resources Inc. now owns 96,126 shares of the company's stock worth $774,000 after purchasing an additional 24,277 shares during the period. Finally, Legal & General Group Plc grew its position in Topgolf Callaway Brands by 1.1% in the 2nd quarter. Legal & General Group Plc now owns 373,525 shares of the company's stock worth $3,007,000 after purchasing an additional 4,036 shares during the period. Institutional investors 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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