Topgolf Callaway Brands (NYSE:MODG) Cut to “Hold” at Zacks Research

Zacks Research cut 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.

Several other research analysts have also issued reports on MODG. Compass Point increased their price target on shares of Topgolf Callaway Brands from $14.50 to $17.50 and gave the stock a “buy” rating in a research note on Monday, January 5th. UBS Group restated 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 raised their target price on shares of Topgolf Callaway Brands from $10.00 to $12.00 and gave the company a “buy” rating in a research note on Tuesday, November 4th. B. Riley reiterated a “neutral” rating and set a $11.00 target price (up from $9.50) on shares of Topgolf Callaway Brands in a report on Monday, November 10th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Topgolf Callaway Brands in a research note on Monday, December 29th. Four investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $11.67.

Topgolf Callaway Brands Stock Up 2.9%

MODG stock opened at $14.57 on Monday. Topgolf Callaway Brands has a fifty-two week low of $5.42 and a fifty-two week high of $14.65. The company has a market capitalization of $2.68 billion, a price-to-earnings ratio of -1.78 and a beta of 0.92. The business’s 50 day moving average price is $11.77 and its two-hundred day moving average price is $10.17. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.30 and a current ratio of 1.87.

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

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

Hedge Funds Weigh In On Topgolf Callaway Brands

A number of hedge funds have recently added to or reduced their stakes in MODG. Signaturefd LLC boosted its stake in Topgolf Callaway Brands by 1,669.0% during the 2nd quarter. Signaturefd LLC now owns 3,078 shares of the company’s stock valued at $25,000 after purchasing 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% during the third quarter. Johnson Financial Group Inc. now owns 3,635 shares of the company’s stock valued at $35,000 after purchasing an additional 3,565 shares in the last quarter. GAMMA Investing LLC bought a new position in shares of Topgolf Callaway Brands during the second quarter valued at $36,000. Smartleaf Asset Management LLC boosted its position in shares of Topgolf Callaway Brands by 42.3% during the third quarter. Smartleaf Asset Management LLC now owns 3,893 shares of the company’s stock valued at $37,000 after buying an additional 1,157 shares during the last quarter. Finally, CWM LLC increased its holdings in Topgolf Callaway Brands by 124.0% in the 2nd quarter. CWM LLC now owns 4,679 shares of the company’s stock worth $38,000 after buying an additional 2,590 shares in the last quarter. 84.69% of the stock is currently owned by hedge funds and other institutional investors.

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.