Topgolf Callaway Brands Corp. (MODG) Clearly Signals Buy-Into the Stock: Don’t ignore the signals

Topgolf Callaway Brands Corp. (NYSE: MODG) stock jumped 1.70% on Thursday to $16.73 against a previous-day closing price of $16.45. With 2.09 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.25 million shares. During the session, the Leisure company that operates in wider Consumer Cyclical sector, reached to the highest price of $16.83 whereas the lowest price it dropped to was $16.30. The 52-week range on MODG shows that it touched its highest point at $25.96 and its lowest point at $16.13 during that stretch. It currently has a 1-year price target of $29.54. Beta for the stock currently stands at 1.78.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MODG was up-trending over the past week, with a rise of 1.83%, but this was up by 1.46% over a month. Three-month performance dropped to -14.38% while six-month performance fell -21.86%. The stock lost -25.21% in the past year, while it has lost -15.29% so far this year. A look at the trailing 12-month EPS for MODG yields 0.53 with Next year EPS estimates of 0.87. For the next quarter, that number is 0.13. This implies an EPS growth rate of -55.20% for this year and 33.28% for next year. EPS is expected to grow by 11.60% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 10.30%.

Float and Shares Shorts:

At present, 185.20 million MODG shares are outstanding with a float of 143.18 million shares on hand for trading. On Aug 30, 2023, short shares totaled 17.11 million, which was 9.23% higher than short shares on Jul 30, 2023.

Institutional Ownership:

Through their ownership of 81.97% of MODG’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 39.69% of MODG, in contrast to 37.46% held by mutual funds. Shares owned by individuals account for 35.02%. As the largest shareholder in MODG with 8.16% of the stake, BlackRock Fund Advisors holds 15,150,982 shares worth 15,150,982. A second-largest stockholder of MODG, The Vanguard Group, Inc., holds 13,189,206 shares, controlling over 7.11% of the firm’s shares. Dimensional Fund Advisors LP is the third largest shareholder in MODG, holding 8,096,863 shares or 4.36% stake. With a 2.41% stake in MODG, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 4,468,626 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.33% of MODG stock, is the second-largest Mutual Fund holder. It holds 4,320,612 shares valued at 86.28 million. Vanguard Small Cap Index Fund holds 1.95% of the stake in MODG, owning 3,611,168 shares worth 72.12 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, MODG reported revenue of $1.12B and operating income of $129.00M. The EBITDA in the recently reported quarter was $189.60M and diluted EPS was $0.53.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MODG since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With MODG analysts setting a high price target of $56.00 and a low target of $16.00, the average target price over the next 12 months is $28.42. Based on these targets, MODG could surge 234.73% to reach the target high and fall by -4.36% to reach the target low. Reaching the average price target will result in a growth of 69.87% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded MODG stock several times over the past three months with 4 Buys and 2 Sells. In these transactions, 5,026 shares were bought while 20,000 shares were sold. The number of buy transactions has increased to 91 while that of sell transactions has risen to 42 over the past year. The total number of shares bought during that period was 951,016 while 454,424 shares were sold.

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