Topgolf Callaway Brands (NYSE:MODG) Stock Price Up 10.6% - Should You Buy?

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) shares traded up 10.6% on Wednesday . The company traded as high as $9.56 and last traded at $9.66. 1,162,931 shares changed hands 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

MODG has been the subject of several research reports. Cfra restated a "hold" rating and set a $9.00 price target on shares of Topgolf Callaway Brands in a report on Friday, July 11th. JPMorgan Chase & Co. dropped their price target 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. B. Riley reiterated a "neutral" rating and set a $9.50 price objective (up from $7.00) on shares of Topgolf Callaway Brands in a report on Monday, August 11th. Wall Street Zen raised Topgolf Callaway Brands from a "sell" rating to a "hold" rating in a research report on Saturday, August 9th. Finally, Morgan Stanley started coverage on Topgolf Callaway Brands in a report on Friday, July 18th. They set an "equal weight" rating and a $9.50 price target for the company. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $10.00.

Topgolf Callaway Brands Stock Down 0.5%

The company has a market cap of $1.80 billion, a price-to-earnings ratio of -1.21 and a beta of 1.26. The business has a 50-day simple moving average of $8.85 and a two-hundred day simple moving average of $7.41. 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 issued its quarterly earnings data on Wednesday, August 6th. The company reported $0.24 earnings per share 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 for the quarter, compared to the consensus estimate of $1.08 billion. During the same period last year, the business earned $0.42 EPS. The firm's revenue was down 4.1% compared to the same quarter last year. As a group, equities analysts forecast that Topgolf Callaway Brands Corp. will post 0.16 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Artie Starrs sold 106,734 shares of Topgolf Callaway Brands stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $8.64, for a total value of $922,181.76. Following the transaction, the chief executive officer directly owned 105,823 shares in the company, valued at approximately $914,310.72. The trade was a 50.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Adebayo O. Ogunlesi bought 384,731 shares of the firm's stock in a transaction that occurred on Friday, June 6th. The shares were acquired at an average price of $6.48 per share, with a total value of $2,493,056.88. Following the purchase, the director owned 768,432 shares in the company, valued at $4,979,439.36. This trade represents a 100.27% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have bought a total of 845,284 shares of company stock valued at $5,533,600 over the last 90 days. 2.49% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in MODG. Shapiro Capital Management LLC raised its position in shares of Topgolf Callaway Brands by 3.6% during the fourth quarter. Shapiro Capital Management LLC now owns 10,520,632 shares of the company's stock valued at $82,692,000 after buying an additional 366,192 shares during the last quarter. Marshall Wace LLP increased its stake in Topgolf Callaway Brands by 10,113.7% during the second quarter. Marshall Wace LLP now owns 4,691,786 shares of the company's stock valued at $37,769,000 after acquiring an additional 4,645,850 shares during the period. Hill Path Capital LP acquired a new position in Topgolf Callaway Brands in the 2nd quarter valued at approximately $37,722,000. Long Focus Capital Management LLC lifted its position in shares of Topgolf Callaway Brands by 44.8% in the 1st quarter. Long Focus Capital Management LLC now owns 2,950,844 shares of the company's stock worth $19,446,000 after acquiring an additional 912,844 shares during the period. Finally, Alliancebernstein L.P. lifted its position in shares of Topgolf Callaway Brands by 7.5% in the 2nd quarter. Alliancebernstein L.P. now owns 2,814,292 shares of the company's stock worth $22,655,000 after acquiring an additional 195,684 shares during the period. 84.69% of the stock is owned by institutional investors.

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.