Investors Buy Large Volume of Put Options on Callaway Golf (NYSE:ELY)

Callaway Golf Co (NYSE:ELY) was the target of unusually large options trading activity on Tuesday. Investors purchased 569 put options on the company. This represents an increase of approximately 954% compared to the average daily volume of 54 put options.

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

A number of institutional investors and hedge funds have recently bought and sold shares of ELY. Norges Bank acquired a new stake in Callaway Golf in the 4th quarter valued at about $23,058,000. Peregrine Capital Management LLC acquired a new stake in Callaway Golf in the 1st quarter valued at about $20,017,000. Rice Hall James & Associates LLC acquired a new stake in Callaway Golf in the 1st quarter valued at about $10,811,000. Kennedy Capital Management Inc. increased its position in Callaway Golf by 283.4% in the 1st quarter. Kennedy Capital Management Inc. now owns 738,298 shares of the company’s stock valued at $11,761,000 after acquiring an additional 545,721 shares in the last quarter. Finally, Gotham Asset Management LLC boosted its stake in shares of Callaway Golf by 777.7% in the 4th quarter. Gotham Asset Management LLC now owns 442,337 shares of the company’s stock valued at $6,768,000 after purchasing an additional 391,938 shares during the last quarter. Hedge funds and other institutional investors own 89.33% of the company’s stock.

ELY opened at $17.44 on Thursday. 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 $1.71 billion, a PE ratio of 16.30, a PEG ratio of 0.70 and a beta of 1.19. 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 $16.21.

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.

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 11th. Shareholders of record on Tuesday, May 21st were given a $0.01 dividend. This represents a $0.04 annualized dividend and a yield of 0.23%. The ex-dividend date was Monday, May 20th. Callaway Golf’s payout ratio is presently 3.74%.

A number of equities research analysts recently issued reports on ELY shares. Berenberg Bank reiterated a “buy” rating and set a $24.00 target price on shares of Callaway Golf in a research report on Thursday, February 28th. ValuEngine cut shares of Callaway Golf from a “hold” rating to a “sell” rating in a research report on Wednesday, May 22nd. Zacks Investment Research cut shares of Callaway Golf from a “hold” rating to a “sell” rating in a research report on Monday, April 15th. Finally, Roth Capital set a $19.00 target price on shares of Callaway Golf and gave the stock a “hold” rating in a research report on Thursday, June 13th. Seven equities research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company’s stock. Callaway Golf has an average rating of “Buy” and a consensus price target of $23.09.

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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