Callaway Golf (NYSE:ELY) Downgraded to Hold at Zacks Investment Research

Zacks Investment Research lowered shares of Callaway Golf (NYSE:ELY) from a buy rating to a hold rating in a research note published on Tuesday, Zacks.com reports.

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. “

ELY has been the topic of several other research reports. Bank of America began coverage on Callaway Golf in a research report on Tuesday, November 16th. They issued a buy rating and a $45.00 target price on the stock. Raymond James raised their target price on Callaway Golf from $38.00 to $40.00 and gave the company an outperform rating in a research report on Wednesday, November 10th. Compass Point increased their price target on Callaway Golf from $33.00 to $38.00 and gave the company a buy rating in a report on Thursday, November 11th. Berenberg Bank reissued a buy rating and set a $40.00 target price on shares of Callaway Golf in a research note on Wednesday, September 15th. Finally, KeyCorp lifted their price objective on Callaway Golf from $38.00 to $40.00 and gave the company an overweight rating in a research note on Thursday, November 11th. Three equities research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. According to MarketBeat.com, Callaway Golf has a consensus rating of Buy and a consensus price target of $39.58.

Shares of Callaway Golf stock opened at $25.92 on Tuesday. The company has a current ratio of 1.59, a quick ratio of 1.14 and a debt-to-equity ratio of 0.28. Callaway Golf has a twelve month low of $24.30 and a twelve month high of $37.75. The firm has a market capitalization of $4.82 billion, a PE ratio of 12.11, a P/E/G ratio of 2.88 and a beta of 1.92. The firm’s 50-day moving average price is $27.63 and its 200 day moving average price is $29.02.

Callaway Golf (NYSE:ELY) last announced its earnings results on Tuesday, November 9th. The company reported $0.14 EPS for the quarter, beating analysts’ consensus estimates of $0.10 by $0.04. The business had revenue of $856.46 million during the quarter, compared to analysts’ expectations of $857.22 million. Callaway Golf had a return on equity of 4.84% and a net margin of 11.00%. During the same quarter in the prior year, the firm earned $0.60 earnings per share. On average, sell-side analysts predict that Callaway Golf will post 0.62 EPS for the current fiscal year.

In other news, CEO Oliver G. Brewer III bought 4,000 shares of the firm’s stock in a transaction that occurred on Thursday, December 2nd. The stock was purchased at an average cost of $25.55 per share, with a total value of $102,200.00. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Brian P. Lynch purchased 15,000 shares of the business’s stock in a transaction on Thursday, December 2nd. The shares were purchased at an average cost of $25.79 per share, for a total transaction of $386,850.00. The disclosure for this purchase can be found here. Insiders have sold a total of 3,167,332 shares of company stock valued at $91,355,635 over the last ninety days. 1.23% of the stock is owned by company insiders.

Institutional investors and hedge funds have recently made changes to their positions in the company. Huntington National Bank purchased a new position in shares of Callaway Golf during the third quarter worth approximately $26,000. Canada Pension Plan Investment Board purchased a new position in shares of Callaway Golf during the second quarter worth approximately $36,000. IFP Advisors Inc grew its position in shares of Callaway Golf by 2,857.1% during the third quarter. IFP Advisors Inc now owns 2,070 shares of the company’s stock worth $57,000 after acquiring an additional 2,000 shares during the last quarter. PNC Financial Services Group Inc. grew its position in shares of Callaway Golf by 22.9% during the third quarter. PNC Financial Services Group Inc. now owns 2,383 shares of the company’s stock worth $66,000 after acquiring an additional 444 shares during the last quarter. Finally, Koshinski Asset Management Inc. purchased a new position in shares of Callaway Golf during the third quarter worth approximately $72,000. Institutional investors and hedge funds own 91.43% of the company’s stock.

Callaway Golf Company Profile

Callaway Golf Co engages in the manufacture and distribution of golf equipment and accessories. It operates through the following segments: Golf Equipment; and Apparel, Gear, and Other. The Golf Equipment segment focuses in the designs, manufactures, and selling of a full line of golf equipment. The Apparel, Gear, and Other segment involves in the development and selling of soft goods products under the Callaway, TravisMathew, OGIO, and Jack Wolfskin brands.

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