Topgolf Callaway Brands (NYSE:MODG) Reaches New 1-Year High – Should You Buy?

Topgolf Callaway Brands Corp. (NYSE:MODG)’s stock price reached a new 52-week high on Monday . The stock traded as high as $13.95 and last traded at $13.80, with a volume of 177829 shares changing hands. The stock had previously closed at $13.77.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on MODG. Compass Point boosted their price objective 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. Roth Capital reissued a “buy” rating and issued a $14.00 target price on shares of Topgolf Callaway Brands in a research report on Wednesday, November 19th. UBS Group reiterated a “neutral” rating and issued a $11.00 price objective on shares of Topgolf Callaway Brands in a report on Monday, November 24th. Truist Financial increased their target price on shares of Topgolf Callaway Brands from $10.00 to $12.00 and gave the stock a “buy” rating in a research report on Tuesday, November 4th. Finally, B. Riley reaffirmed a “neutral” rating and issued a $11.00 price target (up previously from $9.50) on shares of Topgolf Callaway Brands in a research report on Monday, November 10th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $11.67.

Topgolf Callaway Brands Price Performance

The company has a market cap of $2.59 billion, a P/E ratio of -1.72 and a beta of 0.92. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.30 and a current ratio of 1.87. The stock has a 50-day simple moving average of $11.45 and a 200 day simple moving average of $10.05.

Topgolf Callaway Brands (NYSE:MODG) last posted its earnings results on Thursday, November 6th. The company reported ($0.05) EPS for the quarter, topping the consensus estimate of ($0.21) by $0.16. The business had revenue of $465.30 million during the quarter, compared to the consensus estimate of $903.96 million. Topgolf Callaway Brands had a negative return on equity of 0.13% and a negative net margin of 37.06%.Topgolf Callaway Brands’s revenue was down 7.8% on a year-over-year basis. During the same quarter last year, the company earned $0.02 EPS. On average, equities analysts expect that Topgolf Callaway Brands Corp. will post 0.16 EPS for the current year.

Topgolf Callaway Brands announced that its Board of Directors has approved a share buyback program on Monday, January 5th that permits the company to repurchase $200.00 million in shares. This repurchase authorization permits the company to repurchase up to 9.3% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s leadership believes its shares are undervalued.

Institutional Trading of Topgolf Callaway Brands

A number of hedge funds have recently modified their holdings of MODG. Smartleaf Asset Management LLC lifted its holdings in Topgolf Callaway Brands by 42.3% during the third quarter. Smartleaf Asset Management LLC now owns 3,893 shares of the company’s stock worth $37,000 after acquiring an additional 1,157 shares in the last quarter. Public Employees Retirement System of Ohio boosted its position in Topgolf Callaway Brands by 24.6% during the second quarter. Public Employees Retirement System of Ohio now owns 6,275 shares of the company’s stock valued at $51,000 after purchasing an additional 1,240 shares during the last quarter. GAMMA Investing LLC increased its holdings in Topgolf Callaway Brands by 41.4% during the fourth quarter. GAMMA Investing LLC now owns 7,800 shares of the company’s stock worth $91,000 after buying an additional 2,282 shares during the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its stake in 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 purchasing an additional 2,453 shares during the last quarter. Finally, CWM LLC lifted its position in shares of Topgolf Callaway Brands by 124.0% in the second quarter. CWM LLC now owns 4,679 shares of the company’s stock valued at $38,000 after buying an additional 2,590 shares during the last quarter. 84.69% of the stock is currently owned by institutional investors and hedge funds.

Topgolf Callaway Brands Company Profile

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.