Insiders such as the CEO, CFO and EVP of Topgolf Calloway Brands are increasing their total holdings in the company by almost 12%. The golf stock is also in a good place, as institutional transactions show. A forecast predicts that ownership will reach 90% by the summer. These activities, combined with a merger planned and upcoming results, show that Topgolf Calloway Brands could rally and reignite interest in the industry.
Important Points
Insider buying at Topgolf Calloway Brands, (NYSE: MODG), by directors, CEO, CFO and EVP, indicates that the golf stock could recover its value. These actions coincide with long-term stock lows, which could be an indication of a future rebound.
2. Topgolf Calloway Brands may also experience growth due to increased institutional ownership, an announced merger and other activities. The merger may bring about a renewed global golf interest and increase viewers. A scheduled earnings report due in August could be the next major catalyst.
3. Acushnet Holdings’ (NYSE:GOLF) shares are ahead of Topgold Calloway despite having less growth potential. The company’s shares could also gain potential after their Q1 Earnings, despite analysts’ lowering of their targets. The company has a track record of exceeding expectations, and the share price is increasing to a new two-year high.
Insiders at Topgolf Calloway Brands, (NYSE: MODG), have been buying stock steadily since late last year. This could indicate a rally in the near future. Since late last year, insiders have been steadily buying stock. This shows strong support for Topgolf Calloway Brands. Several company officials have decreased their holdings, but the overall enthusiasm is still high. Four high-ranking officials, including the CEO, CFO and EVP, increased their total holdings from 8% to nearly 13%. Institutional activity also reflects this bullish trend.
Topgolf Calloway Brands may be near a low point in its stock value. This could provide a great opportunity for investors, as the company tries to recover. This pattern is consistent, as shown by the surge in institutional interest. Q2 The PGA and LIV merged in 2007, giving the group a 30% stake. The institutional investors who own Topgolf Calloway Brand currently hold approximately 80% and could reach up to 90% of the shares by summer.
Randal Konik of Jefferies is particularly positive about the merger which includes the European Tour. He sees huge potential growth. He believes the deal will revive interest in golf globally and help the company expand. The PIF will also inject cash into the merger, bringing their combined assets and expertise to the table. This could increase interest and viewership in the sport.
Analysts were positive about Topgolf Calloway Brands before the merger announcement. Six analysts tracked by Insidertrades.com voted unanimously in favor of the merger. “Buy” Rating for the stock with a price goal around 60% higher than current market value.
The company will release its earnings report in August, which is the next big catalyst. Although analysts have lowered their earnings and revenue targets, it appears that the expectations are low for the company. The company has surprised both analysts and investors by achieving success in its top line over the past four quarters.
In the Q1 report, positive points included six quarters in a row of comp-venue increases, operational improvements that were ahead of target and completed debt refinancing. Other highlights included increased cash flow, enhanced guidance, and an expected positive FCF for the year.
Acushnet Holdings, Inc. (NYSE:GOLF) has a similar situation, leading the market and surpassing Topgold Calloway. However, it is less likely to grow from this point. Acushnet, unlike MODG, does not have heavy institutional purchasing, and analysts rate his stock as a “Hold”. The stock is close to its fair market value and sentiment has decreased over the last year.
Analysts are not expecting anything spectacular, but they do expect Acushnet Q1 earnings to be a catalyst. Acushnet’s stock could reach a new high if they can continue to beat expectations.
Acushnet Golf (GOLF), with a share price of $55.52, has seen a 2.3% increase in price.
