Callaway Golf (NYSE:ELY) Raised to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Callaway Golf (NYSE:ELY) from a hold rating to a buy rating in a research report released on Friday morning, Zacks.com reports. Zacks Investment Research currently has $20.00 target price on the stock.

According to Zacks, “Callaway Golf is renowned for developing innovative products that help golfers hit longer and straighter shots from tee to green; controlled, higher-spinning shots around the green; and smooth, accurate putts. The long list of legendary Callaway products introduced across the past three decades is long, punctuated by the iconic Big Bertha driver and the Great Big Bertha driver, which Golf Digest named the greatest club of all time for its combination of innovation, performance and lasting impact on the golf equipment landscape. Huge number of tournaments, including numerous Major Championships, have been won by Tour pros playing Callaway equipment. Callaway Golf consists of four powerful brands – Callaway, Odyssey, Toulon Design and OGIO – that together offer golfers all over the world everything they need – clubs, balls, bags, apparel, footwear, bags, accessories – to play better and enjoy the game more. “

Several other research analysts have also issued reports on the stock. Berenberg Bank reaffirmed a buy rating and issued a $24.00 target price on shares of Callaway Golf in a research note on Sunday, May 12th. ValuEngine raised shares of Valmont Industries from a sell rating to a hold rating in a research note on Friday. Finally, Roth Capital set a $75.00 target price on shares of First Solar and gave the company a buy rating in a research note on Thursday, June 13th. Five equities research analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. The stock currently has a consensus rating of Buy and an average target price of $22.83.

ELY opened at $18.32 on Friday. The company has a quick ratio of 0.85, a current ratio of 1.59 and a debt-to-equity ratio of 0.76. The firm has a market cap of $1.73 billion, a PE ratio of 17.12, a PEG ratio of 0.71 and a beta of 1.26. Callaway Golf has a 1-year low of $14.44 and a 1-year high of $24.67. The company has a 50-day moving average of $17.00.

Callaway Golf (NYSE:ELY) last posted its quarterly earnings data on Thursday, May 9th. The company reported $0.63 earnings per share for the quarter, beating the consensus estimate of $0.49 by $0.14. The firm had revenue of $516.20 million during the quarter, compared to analysts’ expectations of $504.07 million. Callaway Golf had a net margin of 6.68% and a return on equity of 13.42%. The company’s quarterly revenue was up 28.0% compared to the same quarter last year. During the same quarter last year, the company posted $0.65 EPS. On average, sell-side analysts expect that Callaway Golf will post 1.04 EPS for the current fiscal year.

In other news, Director Russell L. Fleischer acquired 5,000 shares of Callaway Golf stock in a transaction that occurred on Thursday, May 23rd. The shares were acquired at an average price of $14.75 per share, with a total value of $73,750.00. Following the purchase, the director now directly owns 15,859 shares of the company’s stock, valued at $233,920.25. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Brian P. Lynch acquired 6,575 shares of Callaway Golf stock in a transaction that occurred on Monday, May 20th. The shares were purchased at an average cost of $15.13 per share, for a total transaction of $99,479.75. Following the purchase, the chief financial officer now directly owns 31,967 shares in the company, valued at $483,660.71. The disclosure for this purchase can be found here. Insiders bought a total of 21,575 shares of company stock worth $324,630 in the last ninety days. Insiders own 1.97% of the company’s stock.

Institutional investors have recently added to or reduced their stakes in the stock. Nisa Investment Advisors LLC bought a new position in Callaway Golf during the 2nd quarter worth approximately $34,000. Zions Bancorporation N.A. bought a new position in Callaway Golf during the 1st quarter worth approximately $33,000. Valeo Financial Advisors LLC bought a new position in Callaway Golf during the 1st quarter worth approximately $47,000. Massey Quick Simon & CO. LLC boosted its stake in Callaway Golf by 30.0% during 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 during the last quarter. Finally, Advisor Group Inc. boosted its stake in Callaway Golf by 155.7% during the 4th quarter. Advisor Group Inc. now owns 9,112 shares of the company’s stock worth $141,000 after acquiring an additional 5,548 shares during the last quarter. 89.70% of the stock is currently owned by institutional investors and hedge funds.

About Callaway Golf

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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