What Are The Risk Factors For Callaway Golf Company (ELY)?

As of Wednesday close, Callaway Golf Company’s (NYSE:ELY) stock was down -$0.59, moving down -2.82 percent to $20.30. The average number of shares traded per day over the past five days has been 1,729,980 shares. 1 time new highs have been achieved over the past 5 days, with a -$0.45 fall in that time frame. In the last twenty days, the average volume was 1,665,985, while in the previous 50 days, it was 1,993,270.

Since last month, ELY stock rose 0.69%. Shares of the company fell to $18.43 on 05/24/22, the lowest level in the past month. A 52-week high of $34.80 was reached on 01/12/22 after having rallying from a 52-week low of $17.78. Since the beginning of this year, ELY’s stock price has dropped by -26.02% or -$7.14, and marked a new high 4 times. However, the stock has declined by -41.67% since its 52-week high.

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Callaway Golf Company (ELY) last reported insider trading activity 37 days ago on May 17. Fine Rebecca, the EVP, Chief People Officer of the company, purchased of 1,175 shares for $21.62 on May 17. It resulted in a $25,404 investment by the insider. ANDERSON ERIK J sold 9,992 shares at an average price of $20.81 on May 16. The insider now owns 651,821 shares following the transaction. On May 13, EVP, Chief People Officer Fine Rebecca bought 926 shares at $21.59 apiece. The transaction was valued at $19,992.

Valuation Metrics

Right now, Callaway Golf Company (ELY) has a P/E ratio of about 29.94. The stock’s beta is 1.75. Besides these, the trailing price-to-sales (P/S) ratio of 1.00, the price-to-book (PB) ratio of 1.02.

The latest dividend of $0.01 per share was paid out, remained unchanged from last year’s $0.01.

Financial Health

In the three months ended March 30, Callaway Golf Company’s quick ratio stood at 0.70, while its current ratio was 1.20, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending March 30 was 0.33, and the total debt-to-equity ratio was 0.40. On the profitability front, the trailing twelve-month gross margin is 60.30% percent. In the year ended March 30, operating margins totaled 6.30%. Based on annual data, ELY earned $1.86 billion in gross profit and brought in $3.13 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 3.60%. Return on equity (ROE) for the past 12 months was 3.70%.

In Callaway Golf Company’s quarter-end financial report for March 30, it reported total debt of $1.07 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. ELY’s revenue rose 37.36% to $711.72 million during the quarter, while net income inched up to $1.04 billion. While analysts expected Callaway Golf Company to report $0.24 quarterly earnings, the actual figure was $0.36 per share. During the quarter, the company generated $160.3 million in EBITDA. The liabilities of Callaway Golf Company were 4.38 billion at the end of its most recent quarter ended March 30, and its total debt was $3.12 billion. The value of shareholders’ equity is $184.7 million.

Technical Picture

This quick technical analysis looks at Callaway Golf Company’s (ELY) price momentum. With a historical volatility rate of 56.07%, the RSI 9-day stood at 41.86% on 22 June.

With respect to its five-day moving average, the current Callaway Golf Company price is down by -2.17% percent or -$0.45. At present, ELY shares trade +2.32% above its 20-day simple moving average and -10.30% percent below its 100-day simple moving average. However, the stock is currently trading approximately -9.46% below its SMA50 and -27.08% below its SMA200.

Stochastic coefficient K was 36.41% and Stochastic coefficient D was 37.44%, while ATR was 1.01. Given the Stochastic reading of 24.20% for the 14-day period, the RSI (14) reading has been calculated as 44.36%. As of today, the MACD Oscillator reading stands at -0.27, while the 14-day reading stands at -0.81.

Analyst Ratings

Callaway Golf Company (ELY) has been rated Buy by analysts. According to 0 brokerage firms, ELY is a sell, and 2 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 2 analysts rate Callaway Golf Company stock as buy, with 9 recommending it as overweight.

With a median target price of $35.00, the current consensus forecast for the stock is $24.00 – $55.00. Based on these forecasts, analysts predict Callaway Golf Company (ELY) will achieve an average price target of $35.00.


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