Callaway Golf (NYSE:ELY) Stock Price Up 7.4% Following Strong Earnings

Callaway Golf Co (NYSE:ELY)’s share price rose 7.4% during mid-day trading on Friday following a stronger than expected earnings report. The company traded as high as $20.10 and last traded at $18.83, approximately 4,602,505 shares traded hands during trading. An increase of 261% from the average daily volume of 1,274,473 shares. The stock had previously closed at $17.54.

The company reported $0.37 EPS for the quarter, topping analysts’ consensus estimates of $0.25 by $0.12. The business had revenue of $446.71 million for the quarter, compared to analyst estimates of $430.12 million. Callaway Golf had a return on equity of 13.42% and a net margin of 6.68%. The firm’s revenue for the quarter was up 12.7% on a year-over-year basis. During the same period in the previous year, the company posted $0.63 earnings per share.

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 4th. Stockholders of record on Tuesday, August 13th will be paid a $0.01 dividend. The ex-dividend date is Monday, August 12th. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.21%. Callaway Golf’s payout ratio is presently 3.74%.

Several equities analysts recently issued reports on the company. Stephens upgraded Callaway Golf from an “equal” rating to a “weight” rating and boosted their price target for the company from $18.00 to $21.50 in a research note on Friday. B. Riley set a $30.00 price target on Callaway Golf and gave the company a “buy” rating in a research note on Friday, July 19th. Roth Capital set a $19.00 price target on Callaway Golf and gave the company a “hold” rating in a research note on Thursday, June 13th. ValuEngine lowered Callaway Golf from a “buy” rating to a “hold” rating in a research note on Thursday, August 1st. Finally, Berenberg Bank restated a “buy” rating and set a $24.00 price target on shares of Callaway Golf in a research note on Sunday, May 12th. Five investment analysts have rated the stock with a hold rating and six have given a buy rating to the stock. The company has an average rating of “Buy” and a consensus price target of $23.28.

In related news, CEO Oliver G. Brewer III acquired 10,000 shares of the firm’s stock in a transaction on Monday, May 20th. The shares were bought at an average cost of $15.14 per share, with a total value of $151,400.00. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Brian P. Lynch acquired 6,575 shares of the firm’s stock in a transaction on Monday, May 20th. The shares were bought at an average cost of $15.13 per share, for a total transaction of $99,479.75. Following the completion of the acquisition, the chief financial officer now directly owns 31,967 shares of the company’s stock, valued at approximately $483,660.71. The disclosure for this purchase can be found here. Insiders have purchased 21,575 shares of company stock worth $324,630 over the last 90 days. Corporate insiders own 1.97% of the company’s stock.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Zions Bancorporation N.A. acquired a new position in shares of Callaway Golf in the 1st quarter worth approximately $33,000. FNY Investment Advisers LLC acquired a new position in shares of Callaway Golf in the 2nd quarter worth approximately $34,000. Nisa Investment Advisors LLC acquired a new position in shares of Callaway Golf in the 2nd quarter worth approximately $34,000. Valeo Financial Advisors LLC acquired a new position in shares of Callaway Golf in the 1st quarter worth approximately $47,000. Finally, Massey Quick Simon & CO. LLC boosted its holdings in shares of Callaway Golf by 30.0% in the 1st quarter. Massey Quick Simon & CO. LLC now owns 3,097 shares of the company’s stock worth $49,000 after acquiring an additional 714 shares in the last quarter. 89.61% of the stock is currently owned by institutional investors.

The firm has a market capitalization of $1.63 billion, a price-to-earnings ratio of 17.60, a price-to-earnings-growth ratio of 0.67 and a beta of 1.24. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.59 and a quick ratio of 0.85. The firm has a fifty day moving average of $17.93.

About Callaway Golf (NYSE:ELY)

Callaway Golf Company, together with its subsidiaries, designs, manufactures, and sells golf clubs, golf balls, golf bags, and other golf-related accessories. The company operates through three segments: Golf Clubs; Golf Balls; and Gear, Accessories and Other. The Golf Clubs segment provides golf drivers and fairway woods, hybrids, irons and wedges, putters, packaged sets, and pre-owned golf clubs.

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