Weiss Ratings Reaffirms "Sell (D)" Rating for Topgolf Callaway Brands (NYSE:MODG)

Key Points

• Weiss Ratings has reaffirmed a "Sell (D)" rating for Topgolf Callaway Brands (NYSE:MODG), indicating ongoing concerns about the company's stock performance.
• Despite the negative rating from Weiss, other analysts have shown mixed sentiment, with some upgrading the stock to a "Hold" or "Strong Buy" rating and setting target prices around $9.00 to $9.50.
• Topgolf Callaway Brands reported a quarterly EPS of $0.24, exceeding analysts' expectations, but experienced a 4.1% decline in revenue year-over-year, raising concerns about its financial trajectory.

Topgolf Callaway Brands (NYSE:MODG - Get Free Report)'s stock had its "sell (d)" rating restated by analysts at Weiss Ratings in a research report issued on Wednesday,Weiss Ratings reports.

A number of other equities research analysts have also weighed in on the company. Wall Street Zen upgraded Topgolf Callaway Brands from a "sell" rating to a "hold" rating in a research report on Saturday, August 9th. Morgan Stanley initiated coverage on Topgolf Callaway Brands in a research report on Friday, July 18th. They set an "equal weight" rating and a $9.50 price target on the stock. B. Riley reissued a "neutral" rating and issued a $9.50 target price (up from $7.00) on shares of Topgolf Callaway Brands in a report on Monday, August 11th. Zacks Research raised Topgolf Callaway Brands from a "hold" rating to a "strong-buy" rating in a report on Monday. Finally, Cfra reissued a "hold" rating and issued a $9.00 target price on shares of Topgolf Callaway Brands in a report on Friday, July 11th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $9.75.

Topgolf Callaway Brands Stock Performance

Shares of NYSE MODG opened at $9.08 on Wednesday. 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 stock's 50-day moving average is $9.36 and its 200 day moving average is $8.07. The stock has a market cap of $1.67 billion, a price-to-earnings 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.

Topgolf Callaway Brands (NYSE:MODG - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The company reported $0.24 EPS for the quarter, topping analysts' consensus estimates of $0.03 by $0.21. The business had revenue of $1.11 billion for 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 business's quarterly revenue was down 4.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.42 EPS. On average, sell-side analysts anticipate that Topgolf Callaway Brands will post 0.16 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Erik J. Anderson sold 25,704 shares of the company's stock in a transaction 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 sale, the director owned 20,607 shares in the company, valued at approximately $190,614.75. This represents a 55.50% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Artie Starrs sold 106,734 shares of the company's stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $8.64, for a total value of $922,181.76. Following the sale, the chief executive officer owned 105,823 shares of the company's stock, valued at approximately $914,310.72. This trade represents a 50.21% decrease in their position. The disclosure for this sale can be found here. 2.40% of the stock is currently owned by corporate insiders.

Institutional Trading of Topgolf Callaway Brands

A number of hedge funds and other institutional investors have recently bought and sold shares of MODG. Wealth Enhancement Advisory Services LLC purchased a new stake in Topgolf Callaway Brands in the fourth quarter worth about $289,000. Dynamic Advisor Solutions LLC purchased a new stake in Topgolf Callaway Brands in the first quarter worth about $66,000. New World Advisors LLC increased its position in Topgolf Callaway Brands by 24.2% in the first quarter. New World Advisors LLC now owns 34,925 shares of the company's stock worth $230,000 after buying an additional 6,800 shares in the last quarter. Boyar Asset Management Inc. increased its position in Topgolf Callaway Brands by 1.7% in the first quarter. Boyar Asset Management Inc. now owns 109,984 shares of the company's stock worth $725,000 after buying an additional 1,857 shares in the last quarter. Finally, Novem Group purchased a new stake in Topgolf Callaway Brands in the first quarter worth about $538,000. 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.

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