Topgolf Callaway Brands (NYSE:MODG) Stock Rating Lowered by Zacks Research

Topgolf Callaway Brands (NYSE:MODG) was downgraded by equities researchers at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Monday,Zacks.com reports.

A number of other research firms also recently commented on MODG. Roth Capital reiterated a “buy” rating and set a $14.00 target price on shares of Topgolf Callaway Brands in a research report on Wednesday, November 19th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Topgolf Callaway Brands in a research note on Monday, December 29th. B. Riley restated a “neutral” rating and set a $11.00 target price (up previously from $9.50) on shares of Topgolf Callaway Brands in a research report on Monday, November 10th. Compass Point increased their price target on shares of Topgolf Callaway Brands from $14.50 to $17.50 and gave the company a “buy” rating in a research report on Monday, January 5th. Finally, UBS Group reissued a “neutral” rating and set a $11.00 price objective on shares of Topgolf Callaway Brands in a research note on Monday, November 24th. Four investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average target price of $11.67.

Topgolf Callaway Brands Price Performance

Shares of NYSE MODG traded up $0.11 during midday trading on Monday, hitting $14.26. The company had a trading volume of 611,455 shares, compared to its average volume of 2,521,474. The firm has a market capitalization of $2.62 billion, a price-to-earnings ratio of -1.74 and a beta of 0.92. Topgolf Callaway Brands has a twelve month low of $5.42 and a twelve month high of $14.48. The business has a 50-day simple moving average of $11.66 and a two-hundred day simple moving average of $10.14. The company has a quick ratio of 1.30, a current ratio of 1.87 and a debt-to-equity ratio of 0.60.

Topgolf Callaway Brands (NYSE:MODG) last issued its earnings results on Thursday, November 6th. The company reported ($0.05) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.21) by $0.16. The company had revenue of $465.30 million during the quarter, compared to analysts’ expectations of $903.96 million. Topgolf Callaway Brands had a negative net margin of 37.06% and a negative return on equity of 0.13%. The firm’s quarterly revenue was down 7.8% compared to the same quarter last year. During the same period last year, the company posted $0.02 earnings per share. Equities research analysts anticipate that Topgolf Callaway Brands will post 0.16 earnings per share for the current year.

Topgolf Callaway Brands announced that its board has initiated a share buyback plan on Monday, January 5th that permits the company to buyback $200.00 million in shares. This buyback authorization permits the company to reacquire up to 9.3% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s management believes its shares are undervalued.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Signaturefd LLC boosted its position in Topgolf Callaway Brands by 1,669.0% in the 2nd quarter. Signaturefd LLC now owns 3,078 shares of the company’s stock valued at $25,000 after buying an additional 2,904 shares during the last quarter. Johnson Financial Group Inc. lifted its holdings in shares of Topgolf Callaway Brands by 5,092.9% in the 3rd quarter. Johnson Financial Group Inc. now owns 3,635 shares of the company’s stock worth $35,000 after purchasing an additional 3,565 shares during the last quarter. GAMMA Investing LLC acquired a new position in shares of Topgolf Callaway Brands during the second quarter valued at $36,000. Smartleaf Asset Management LLC grew its position in Topgolf Callaway Brands by 42.3% in the 3rd quarter. Smartleaf Asset Management LLC now owns 3,893 shares of the company’s stock worth $37,000 after purchasing an additional 1,157 shares during the last quarter. Finally, CWM LLC increased its position in Topgolf Callaway Brands by 124.0% in the 2nd quarter. CWM LLC now owns 4,679 shares of the company’s stock valued at $38,000 after acquiring an additional 2,590 shares during the period. Institutional investors and hedge funds own 84.69% of the company’s stock.

About Topgolf Callaway Brands

Topgolf Callaway Brands plc (NYSE: MODG) is a leading global sports and entertainment company formed through the merger of Callaway Golf Company and Topgolf Entertainment Group in July 2022. The company combines Callaway’s heritage in golf equipment design and manufacturing with Topgolf’s innovative, technology-driven entertainment venues. Topgolf Callaway Brands serves a diverse audience of golf enthusiasts, casual players and social visitors, offering experiences that span both competitive sport and leisure activities.

Under the Callaway Golf brand, the company develops and markets a broad portfolio of premium golf clubs, balls, accessories and apparel.