Topgolf Callaway’s (MODG) shares have been struggling for quite some time now. In fact, ever since Callaway unveiled its ambitious merger with Topgolf in October 2020, creating Topgolf Callaway a global powerhouse in golf equipment, sports entertainment, and lifestyle, the stock has failed to deliver positive returns. While the deal promised to reshape the future of the game, the market response has been lukewarm, with shares struggling to find their swing in the years since.
But things suddenly seem to be shifting. On June 9, shares of MODG popped nearly 15%, and the reason has everything to do with a high-profile insider purchase. Last week, board member Adebayo Ogunlesi stepped in and bought around $2.5 million worth of shares. Insider buys like this often read as quiet signals of confidence, and Ogunlesi brings the kind of track record Wall Street pays attention to.
Ogunlesi is the founding partner and CEO of Global Infrastructure Partners, a firm acquired by BlackRock (BLK) in a $12 billion deal last year. He now sits on BlackRock’s board, and in January, joined the board of OpenAI. So, after a tough stretch for MODG, Ogunlesi’s move looks like a meaningful show of conviction, right when the company needs it most.
Ogunlesi purchased an additional $3 million worth of stock just a few days later, for a total of roughly $5.5 million in June 2025.
About Topgolf Callaway Stock
California-based Topgolf Callaway Brands (MODG) has positioned itself at the intersection of golf, lifestyle, and technology. With a diverse lineup of brands, including Topgolf, Callaway Golf, TravisMathew, Toptracer, Odyssey, OGIO, and Jack Wolfskin, the company spans everything from equipment and apparel to tech-driven entertainment. Its concept of “Modern Golf” reflects a broader, more inclusive approach to the game, combining on-course play with off-course experiences.
The company’s market cap presently stands at approximately $1.4 billion. While Topgolf’s shares did get a boost following the latest high-profile insider purchase, the lift wasn’t strong enough to pull the stock into positive territory for the year. As of now, MODG is still down about 0.6% year-to-date, lagging behind the broader S&P 500 Index’s ($SPX) modest 2.3% rise during the same stretch.
Valuation-wise, MODG looks notably discounted. The stock is trading at just 0.33 times sales, which is well below the sector median of 0.91x. That wide gap highlights the market’s cautious stance on the company’s performance and outlook. Still, for those scanning the space for beaten-down names with potential, this steep discount could point to a stock flying under the radar.
Inside Topgolf Callaway’s Q1 Earnings Report
Topgolf Callaway’s first-quarter results, reported on May 12, painted a mixed picture. Revenue of $1.1 billion came in 4.5% lower than the same period last year, signaling some softness in top-line growth. However, the decline wasn’t as steep as analysts had expected, offering a slight upside surprise. The real standout came on the bottom line. Adjusted earnings per share surged 37.5% year over year to $0.11, handily beating Wall Street’s forecast of a $0.04 loss per share.
Breaking down the numbers by segment, Topgolf Callaway saw revenue softness across the board in the first quarter. The Topgolf segment brought in $393.7 million, marking a 6.9% decline from the same period last year. The golf equipment division held relatively steady, with revenue slipping only slightly year over year.
The active lifestyle segment, which includes brands like TravisMathew and Jack Wolfskin, posted $254.9 million in revenue, a 6.1% drop compared to the prior-year quarter. That decline was largely tied to the intentional scaling down of the Jack Wolfskin business in Europe, a strategic move by the company. Still, growth in China helped cushion the impact, offering a bright spot in an otherwise sluggish quarter.
During the quarter, Topgolf Callaway highlighted progress on cost-cutting and margin-boosting efforts. A key development was the announcement to divest its Jack Wolfskin business, a move management says will help streamline operations, sharpen focus on core segments, and improve overall financial flexibility.
Looking ahead to the second quarter of fiscal 2025, the company expects revenue to land between $1.075 billion and $1.115 billion, with adjusted EBITDA forecast in the range of $139 million to $159 million. For the full year, MODG is targeting total revenue between $4 billion and $4.19 billion.
What Do Analysts Expect for Topgolf Callaway Stock?
Adebayo Ogunlesi may be signaling confidence with his recent multimillion-dollar buy, but Wall Street isn’t quite sold yet. Analyst sentiment around MODG remains lukewarm, with the consensus leaning toward a “Hold.” Of the 11 analysts offering recommendations, four are giving it a “Strong Buy,” five suggest a “Hold,” and the remaining two advocate “Strong Sell.”
MODG’s average analyst price target of $9.39 indicates 22% potential upside from the current price levels. However, the Street-high price target of $13.50 suggests that the stock can still rally as much as 75.3% from here.
Key Takeaways
Topgolf Callaway’s story is still one of cautious recovery. The company’s latest financials weren’t exactly stellar, and the stock has spent years stuck in a rut since its big merger move back in 2020. Wall Street also remains hesitant, with most analysts sitting on the fence. But the recent $2.5 million insider investment by a seasoned board member like Adebayo Ogunlesi adds an interesting twist. It may not be a green light just yet, but it’s a notable vote of confidence that makes MODG a stock to keep on the radar.
On the date of publication, Anushka Mukherji did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
