Callaway Golf Company (ELY) Sets New 1-Year High Following Strong Earnings

Callaway Golf Company (NYSE:ELY) hit a new 52-week high during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $14.82 and last traded at $14.78, with a volume of 2,081,411 shares. The stock had previously closed at $14.13.

The company reported $0.05 EPS for the quarter, beating the Zacks’ consensus estimate of ($0.04) by $0.09. The business had revenue of $243.60 million for the quarter, compared to analyst estimates of $209.52 million. Callaway Golf had a return on equity of 6.60% and a net margin of 18.09%. The firm’s revenue for the quarter was up 29.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.06) EPS.

ELY has been the topic of a number of research analyst reports. KeyCorp set a $16.00 target price on Callaway Golf and gave the company a “buy” rating in a report on Saturday, October 21st. BidaskClub lowered Callaway Golf from a “buy” rating to a “hold” rating in a report on Wednesday, July 19th. Aegis reaffirmed a “buy” rating on shares of Callaway Golf in a report on Monday, September 4th. Imperial Capital reaffirmed an “outperform” rating and issued a $16.00 target price (up previously from $14.50) on shares of Callaway Golf in a report on Wednesday, August 9th. Finally, Jefferies Group LLC reaffirmed a “buy” rating and issued a $18.00 target price on shares of Callaway Golf in a report on Thursday, October 12th. Six investment analysts have rated the stock with a hold rating and ten have issued a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and a consensus price target of $15.52.

In related news, insider Oliver G. Brewer III sold 131,884 shares of the firm’s stock in a transaction on Friday, August 4th. The stock was sold at an average price of $13.31, for a total transaction of $1,755,376.04. Following the completion of the sale, the insider now directly owns 291,399 shares of the company’s stock, valued at approximately $3,878,520.69. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Mark F. Leposky sold 31,691 shares of the firm’s stock in a transaction on Thursday, August 31st. The shares were sold at an average price of $14.00, for a total value of $443,674.00. Following the sale, the vice president now directly owns 68,343 shares of the company’s stock, valued at $956,802. The disclosure for this sale can be found here. Insiders have sold a total of 281,113 shares of company stock valued at $3,792,388 over the last ninety days. Insiders own 2.59% of the company’s stock.

A number of hedge funds have recently added to or reduced their stakes in ELY. UBS Asset Management Americas Inc. increased its holdings in Callaway Golf by 59.7% during the 1st quarter. UBS Asset Management Americas Inc. now owns 32,421 shares of the company’s stock valued at $359,000 after purchasing an additional 12,124 shares in the last quarter. Karp Capital Management Corp acquired a new stake in shares of Callaway Golf in the 1st quarter valued at $243,000. Arizona State Retirement System increased its stake in shares of Callaway Golf by 1.7% in the 1st quarter. Arizona State Retirement System now owns 49,282 shares of the company’s stock valued at $546,000 after buying an additional 800 shares during the period. Municipal Employees Retirement System of Michigan increased its stake in shares of Callaway Golf by 1.3% in the 1st quarter. Municipal Employees Retirement System of Michigan now owns 27,960 shares of the company’s stock valued at $310,000 after buying an additional 360 shares during the period. Finally, OppenheimerFunds Inc. increased its stake in shares of Callaway Golf by 26.2% in the 1st quarter. OppenheimerFunds Inc. now owns 60,371 shares of the company’s stock valued at $669,000 after buying an additional 12,539 shares during the period. 89.50% of the stock is owned by hedge funds and other institutional investors.

The company’s 50 day moving average is $14.15 and its 200-day moving average is $13.02. The stock has a market capitalization of $1.40 billion, a P/E ratio of 8.18 and a beta of 1.17.

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About Callaway Golf

Callaway Golf Company designs, manufactures and sells golf clubs, golf balls, golf bags and other golf-related accessories. The Company has two segments: the golf clubs segment and golf balls segment. The golf clubs segment consists of its woods, hybrids, irons and wedges, and Odyssey putters. This segment also includes other golf-related accessories, royalties from licensing of its trademarks and service marks and sales of pre-owned golf clubs.

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