Yahoo Finance Topgolf Callaway Brands Insiders Placed Bullish Bets Worth US$2.91m
In the last year, multiple insiders have substantially increased their holdings of Topgolf Callaway Brands Corp. (NYSE:MODG) stock, indicating that insiders' optimism about the company's prospects has increased.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Topgolf Callaway Brands
Topgolf Callaway Brands Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Adebayo Ogunlesi bought US$1.9m worth of shares at a price of US$19.45 per share. That means that even when the share price was higher than US$15.45 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Topgolf Callaway Brands insiders bought shares during the last year, they didn't sell. Their average price was about US$15.58. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Topgolf Callaway Brands is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Topgolf Callaway Brands insiders own 12% of the company, worth about US$334m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Topgolf Callaway Brands Tell Us?
It doesn't really mean much that no insider has traded Topgolf Callaway Brands shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Topgolf Callaway Brands insiders feel good about the company's future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Topgolf Callaway Brands has 1 warning sign we think you should be aware of.
But note: Topgolf Callaway Brands may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
