Topgolf Callaway Brands (NYSE:MODG) Downgraded by Zacks Research to Hold

Zacks Research downgraded shares of Topgolf Callaway Brands (NYSE:MODG) from a strong-buy rating to a hold rating in a research note published on Monday,Zacks.com reports.

Other analysts have also recently issued reports about the stock. JPMorgan Chase & Co. raised their price target on shares of Topgolf Callaway Brands from $9.00 to $10.00 and gave the company a “neutral” rating in a report on Wednesday, November 12th. UBS Group reissued a “neutral” rating and set a $11.00 target price on shares of Topgolf Callaway Brands in a research report on Monday, November 24th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Topgolf Callaway Brands in a report on Monday, December 29th. B. Riley reaffirmed a “neutral” rating and set a $11.00 price target (up from $9.50) on shares of Topgolf Callaway Brands in a research report on Monday, November 10th. Finally, Roth Capital reissued a “buy” rating and issued a $14.00 price objective on shares of Topgolf Callaway Brands in a research report on Wednesday, November 19th. Four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $11.67.

Topgolf Callaway Brands Stock Up 1.0%

NYSE MODG traded up $0.14 during midday trading on Monday, hitting $14.29. 603,407 shares of the company traded hands, compared to its average volume of 2,505,406. Topgolf Callaway Brands has a 52 week low of $5.42 and a 52 week high of $14.48. The company’s 50-day simple moving average is $11.66 and its 200-day simple moving average is $10.14. The company has a market cap of $2.63 billion, a PE ratio of -1.74 and a beta of 0.92. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.87 and a quick ratio of 1.30.

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

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

Institutional Investors Weigh In On Topgolf Callaway Brands

Institutional investors and hedge funds have recently modified their holdings of the company. Bryce Point Capital LLC acquired a new position in shares of Topgolf Callaway Brands in the 2nd quarter valued at $762,000. O Keefe Stevens Advisory Inc. grew its position in Topgolf Callaway Brands by 2,528.5% during the third quarter. O Keefe Stevens Advisory Inc. now owns 347,008 shares of the company’s stock valued at $3,297,000 after buying an additional 333,806 shares during the period. Hill Path Capital LP purchased a new position in Topgolf Callaway Brands in the second quarter valued at $37,722,000. AlphaQuest LLC raised its position in shares of Topgolf Callaway Brands by 353.9% in the second quarter. AlphaQuest LLC now owns 96,433 shares of the company’s stock worth $776,000 after acquiring an additional 75,187 shares during the period. Finally, Marshall Wace LLP boosted its stake in shares of Topgolf Callaway Brands by 10,113.7% during the 2nd quarter. Marshall Wace LLP now owns 4,691,786 shares of the company’s stock worth $37,769,000 after acquiring an additional 4,645,850 shares in the last quarter. Institutional investors and hedge funds own 84.69% of the company’s stock.

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.