Wall Street Zen Upgrades Topgolf Callaway Brands (NYSE:MODG) to Hold

Key Points

• Topgolf Callaway Brands (NYSE:MODG) was recently upgraded from a "sell" to a "hold" rating by Wall Street Zen, indicating a more favorable outlook on the stock.
• The stock has seen a significant fluctuation in target prices, with multiple analysts setting varying targets between $7.00 and $9.50, and a current consensus target price of $9.75.
• Despite a challenging performance with a 10.1% drop, Topgolf Callaway Brands reported a quarterly earnings beat of $0.24 EPS, surpassing estimates significantly, though revenue decreased by 4.1% year-over-year.

Wall Street Zen upgraded shares of Topgolf Callaway Brands (NYSE:MODG - Free Report) from a sell rating to a hold rating in a report published on Saturday morning.

Several other analysts have also recently issued reports on MODG. JPMorgan Chase & Co. dropped their target price on Topgolf Callaway Brands from $8.00 to $7.00 and set a "neutral" rating for the company in a report on Tuesday, May 27th. Morgan Stanley began coverage on Topgolf Callaway Brands in a report on Friday, July 18th. They issued an "equal weight" rating and a $9.50 target price for the company. Cfra restated a "hold" rating and issued a $9.00 target price on shares of Topgolf Callaway Brands in a report on Friday, July 11th. Truist Financial dropped their target price on Topgolf Callaway Brands from $12.00 to $7.00 and set a "buy" rating for the company in a report on Monday, April 14th. Finally, B. Riley started coverage on Topgolf Callaway Brands in a report on Friday, May 16th. They issued a "neutral" rating and a $7.00 target price for the company. One research analyst has 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, Topgolf Callaway Brands has an average rating of "Hold" and a consensus target price of $10.00.

Topgolf Callaway Brands Price Performance

Shares of NYSE:MODG traded down $0.41 during trading on Friday, reaching $8.19. The stock had a trading volume of 2,921,186 shares, compared to its average volume of 2,980,466. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.25 and a current ratio of 1.85. The business has a fifty day moving average price of $8.51 and a 200-day moving average price of $7.36. The stock has a market cap of $1.51 billion, a PE ratio of -1.01 and a beta of 1.26. Topgolf Callaway Brands has a 1-year low of $5.42 and a 1-year high of $12.03.

Topgolf Callaway Brands (NYSE:MODG - Get Free Report) last released its quarterly earnings data 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 for the quarter, compared to analyst estimates of $1.08 billion. Topgolf Callaway Brands had a positive return on equity of 0.37% and a negative net margin of 36.08%. The firm's revenue for the quarter was down 4.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.42 earnings per share. On average, equities analysts forecast that Topgolf Callaway Brands will post 0.16 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Topgolf Callaway Brands news, CEO Oliver G. Brewer III acquired 20,000 shares of the company's stock in a transaction dated Wednesday, May 14th. The shares were acquired at an average price of $6.40 per share, for a total transaction of $128,000.00. Following the acquisition, the chief executive officer owned 1,009,297 shares in the company, valued at $6,459,500.80. The trade was a 2.02% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Russell L. Fleischer acquired 30,000 shares of the company's stock in a transaction dated Wednesday, May 14th. The stock was acquired at an average price of $6.41 per share, for a total transaction of $192,300.00. Following the acquisition, the director owned 116,187 shares in the company, valued at approximately $744,758.67. The trade was a 34.81% increase in their position. The disclosure for this purchase can be found here. Insiders have purchased 905,284 shares of company stock worth $5,922,500 in the last quarter. Company insiders own 2.40% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Empowered Funds LLC grew its stake in Topgolf Callaway Brands by 9.8% during the 2nd quarter. Empowered Funds LLC now owns 487,162 shares of the company's stock worth $3,922,000 after buying an additional 43,414 shares during the last quarter. Bulltick Wealth Management LLC acquired a new stake in shares of Topgolf Callaway Brands in the 2nd quarter valued at approximately $315,000. Creative Planning lifted its holdings in shares of Topgolf Callaway Brands by 9.7% in the 2nd quarter. Creative Planning now owns 45,833 shares of the company's stock valued at $369,000 after buying an additional 4,061 shares during the period. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its holdings in shares of Topgolf Callaway Brands by 7.2% in the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 36,326 shares of the company's stock valued at $292,000 after buying an additional 2,453 shares during the period. Finally, Verus Capital Partners LLC acquired a new position in Topgolf Callaway Brands during the second quarter worth $129,000. 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.