Insider Trading Report: Topgolf Callaway Brands (MODG)

Oliver Brewer, President and CEO at Topgolf Callaway Brands (MODG), recently added 5,000 shares. The buy increased his stake by just under 1 percent, and came to a total cost of $85,596.

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  • The buy came a day after the company’s CFO added 10,000 shares, increasing his holdings by 8 percent, and coming at a cost of $177,900.  The two executives were last buyers of shares in December, both picking up 10,000 at that time.

    Overall, company insiders own 11.4 percent of shares.

    The golf equipment and apparel manufacturer is down about 20 percent over the past year as the company has lost money and amid fears of a declining economy.

    The drop in shares has given the company a price-to-sales ratio just under 0.9, and shares now trade under their book value. Those metrics suggest that there’s some value for the company’s brands that isn’t reflected in the current share price.

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  • Action to take: Share are reasonably valued at 21 times earnings, down from 408 times earnings a year ago. If sales can improve and the company can return to profitability, shares will likely trend higher from here. At present, the stock does not pay a dividend.

    For traders, shares just dropped after earnings, and will likely rebound in the coming months. The August $22.50 calls, last going or about $0.30, offer mid-double-digit gains or better on a rebound.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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