Topgolf Callaway Brands (NYSE:MODG) Upgraded to "Strong-Buy" at Zacks Research

Key Points

• Topgolf Callaway Brands (NYSE:MODG) has been upgraded by Zacks Research from a "hold" to a "strong-buy" rating.
• The company's shares opened at $9.14 with a market cap of $1.68 billion and a consensus target price of $9.75.
• CEO Artie Starrs recently sold over 106,000 shares of the company's stock, reducing his ownership by more than 50%.

Topgolf Callaway Brands (NYSE:MODG - Get Free Report) was upgraded by research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report issued on Monday,Zacks.com reports.

Other research analysts have also issued reports about the stock. Wall Street Zen upgraded shares of Topgolf Callaway Brands from a "sell" rating to a "hold" rating in a research report on Saturday, August 9th. Cfra reiterated a "hold" rating and set a $9.00 price target on shares of Topgolf Callaway Brands in a report on Friday, July 11th. B. Riley restated a "neutral" rating and issued a $9.50 target price (up previously from $7.00) on shares of Topgolf Callaway Brands in a report on Monday, August 11th. Weiss Ratings restated a "sell (d)" rating on shares of Topgolf Callaway Brands in a research report on Saturday, September 27th. Finally, Morgan Stanley started coverage on shares of Topgolf Callaway Brands in a research note on Friday, July 18th. They issued an "equal weight" rating and a $9.50 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $9.75.

Topgolf Callaway Brands Price Performance

Shares of NYSE MODG opened at $9.14 on Monday. The firm has a market cap of $1.68 billion, a P/E ratio of -1.12 and a beta of 1.24. Topgolf Callaway Brands has a 1-year low of $5.42 and a 1-year high of $11.09. 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's 50 day moving average is $9.36 and its 200-day moving average is $8.06.

Topgolf Callaway Brands (NYSE:MODG - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $0.24 earnings per share for the quarter, topping the consensus estimate of $0.03 by $0.21. The firm had revenue of $1.11 billion during the quarter, compared to analysts' expectations 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 company's quarterly revenue was down 4.1% on a year-over-year basis. During the same period in the prior year, the company earned $0.42 earnings per share. Equities research analysts predict that Topgolf Callaway Brands will post 0.16 earnings per share for the current year.

Insider Activity

In related news, CEO Artie Starrs sold 106,734 shares of the firm's stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $8.64, for a total transaction of $922,181.76. Following the completion of the sale, the chief executive officer directly owned 105,823 shares in the company, valued at approximately $914,310.72. This trade represents a 50.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Erik J. Anderson sold 25,704 shares of the firm's stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $9.25, for a total transaction of $237,762.00. Following the sale, the director owned 20,607 shares of the company's stock, valued at approximately $190,614.75. The trade was a 55.50% decrease in their ownership of the stock. The disclosure for this sale can be found here. 2.49% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Topgolf Callaway Brands

A number of institutional investors have recently made changes to their positions in the stock. Wealth Enhancement Advisory Services LLC acquired a new position in shares of Topgolf Callaway Brands in the fourth quarter valued at approximately $289,000. Novem Group purchased a new stake in Topgolf Callaway Brands in the 1st quarter valued at $538,000. Inspire Investing LLC purchased a new stake in Topgolf Callaway Brands in the 1st quarter valued at $346,000. Dynamic Advisor Solutions LLC purchased a new position in Topgolf Callaway Brands during the 1st quarter worth $66,000. Finally, Fox Run Management L.L.C. purchased a new position in Topgolf Callaway Brands during the 1st quarter worth $265,000. 84.69% of the stock is currently owned by institutional investors and hedge funds.

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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