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The Futility of Callaway Golf Company (NYSE:ELY)’s Fundamentals

Callaway Golf Company (NYSE:ELY) has a beta of 2.14, a 12-month trailing P/E ratio of 68.17, and a growth ratio of 2.21. The stock’s Relative Strength Index (RSI) is 58.01, with weekly volatility at 2.59% and ATR at 1.25. The ELY stock’s 52-week price range has touched low of $14.62 and a $37.75 high. Its shares traded lower over the last trading session, losing -2.91% on 06/04/21. The shares fell to a low of $35.14 before closing at $35.31. Intraday shares traded counted 2.94 million, which was -48.71% lower than its 30-day average trading volume of 1.98M. ELY’s previous close was $36.37 while the outstanding shares total 117.48M.

Investors have identified the Leisure company Callaway Golf Company as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $6.72 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Callaway Golf Company (ELY) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For ELY, the company has in raw cash 397.29 million on their books with 15.28 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 1.2 billion total, with 696.34 million as their total liabilities.

ELY were able to record -107.44 million as free cash flow during the 08/05/2021 quarter of the year, this saw their quarterly net cash flow reduce by 31.17 million. In cash movements, the company had a total of -78.62 million as operating cash flow.

Potential earnings growth for Callaway Golf Company (ELY)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/05/2021 quarter of the year, Callaway Golf Company recorded a total of 651.62 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 32.13% coming in sequential stages and their sales for the 08/05/2021 quarter increasing by 42.51%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 321.62 million trying to sell their products during the last quarter, with the result yielding a gross income of 330.01 million. This allows shareholders to hold on to 117.48M with the recently reported earning now reading 2.32 cents per share. This is a figure that compared to analyst’s prediction for their 08/05/2021 (0.62 cents a share).

Having a look at the company’s valuation, the company is expected to record 0.34 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on ELY sounds very interesting.

Is the stock of ELY attractive?

In related news, President and CEO, BREWER OLIVER G III sold 497,537 shares of the company’s stock in a transaction that recorded on Jun 01. The sale was performed at an average price of 37.21, for a total value of 18,513,849. As the sale deal closes, the EVP, Callaway Golf, Hickey Glenn F. now sold 1,746 shares of the company’s stock, valued at 64,969. Also, EVP, Callaway Golf, Hickey Glenn F. sold 12,377 shares of the company’s stock in a deal that was recorded on May 18. The shares were price at an average price of 35.13 per share, with a total market value of 434,804. Following this completion of acquisition, the EVP, Callaway Golf, Hickey Glenn F. now holds 1,696 shares of the company’s stock, valued at 58,902. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.00%.

7 out of 10 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Callaway Golf Company. 0 analysts has assigned a Sell rating on the ELY stock. The 12-month mean consensus price target for the company’s shares has been set at $37.70.

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