Topgolf Callaway Brands (NYSE:MODG) Shares Gap Up Following Better-Than-Expected Earnings

Topgolf Callaway Brands Corp. (NYSE:MODG)’s share price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $9.27, but opened at $9.85. Topgolf Callaway Brands shares last traded at $9.9220, with a volume of 352,320 shares changing hands.

The company reported ($0.05) EPS for the quarter, beating analysts’ consensus estimates of ($0.21) by $0.16. The business 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 36.08% and a positive return on equity of 0.37%. The business’s revenue was down 7.8% compared to the same quarter last year. During the same period in the prior year, the company earned $0.02 earnings per share. Topgolf Callaway Brands has set its Q4 2025 guidance at EPS. FY 2025 guidance at EPS.

Wall Street Analyst Weigh In

Several research firms have recently commented on MODG. Morgan Stanley assumed 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 target price for the company. Cfra reissued a “hold” rating and set a $9.00 price objective on shares of Topgolf Callaway Brands in a research note on Friday, July 11th. Truist Financial increased their target price on Topgolf Callaway Brands from $10.00 to $12.00 and gave the company a “buy” rating in a report on Tuesday. Weiss Ratings reissued a “sell (d)” rating on shares of Topgolf Callaway Brands in a research report on Wednesday, October 8th. Finally, B. Riley reiterated a “neutral” rating and issued a $9.50 target price (up from $7.00) on shares of Topgolf Callaway Brands in a research note on Monday, August 11th. Three investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Topgolf Callaway Brands currently has a consensus rating of “Hold” and an average price target of $10.33.

Insider Activity

In related news, CEO Artie Starrs sold 106,734 shares of the stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $8.64, for a total value of $922,181.76. Following the completion of the transaction, the chief executive officer directly owned 105,823 shares of the company’s stock, valued at $914,310.72. This represents a 50.21% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 2.49% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Teacher Retirement System of Texas acquired a new stake in shares of Topgolf Callaway Brands during the 1st quarter valued at $133,000. Principal Financial Group Inc. boosted its position in Topgolf Callaway Brands by 2.7% during the first quarter. Principal Financial Group Inc. now owns 704,970 shares of the company’s stock valued at $4,646,000 after purchasing an additional 18,490 shares during the last quarter. Cerity Partners LLC grew its stake in Topgolf Callaway Brands by 48.5% in the first quarter. Cerity Partners LLC now owns 16,177 shares of the company’s stock valued at $107,000 after purchasing an additional 5,286 shares in the last quarter. Schwarz Dygos Wheeler Investment Advisors LLC acquired a new position in Topgolf Callaway Brands in the 1st quarter worth about $73,000. Finally, Private Advisor Group LLC acquired a new position in Topgolf Callaway Brands in the 1st quarter worth about $685,000. Hedge funds and other institutional investors own 84.69% of the company’s stock.

Topgolf Callaway Brands Price Performance

The stock has a 50 day moving average price of $9.38 and a two-hundred day moving average price of $8.53. The company has a market capitalization of $1.88 billion, a PE ratio of -1.25 and a beta of 1.19. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.25 and a current ratio of 1.85.

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.