Trade Alert: The Independent Director Of Topgolf Callaway Brands Corp. (NYSE:MODG), Samuel Armacost, Has Just Spent US$104k Buying 4.6% More Shares
Potential Topgolf Callaway Brands Corp. (NYSE:MODG) shareholders may wish to note that the Independent Director, Samuel Armacost, recently bought US$104k worth of stock, paying US$20.85 for each share. Although the purchase only increased their holding by 4.6%, it is still a solid purchase in our view.
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 Executive VP Brian Lynch bought US$387k worth of shares at a price of US$25.79 per share. That means that even when the share price was higher than US$20.41 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.
In the last twelve months insiders purchased 57.10k shares for US$1.3m. But insiders sold 10.00k shares worth US$265k. In the last twelve months there was more buying than selling by Topgolf Callaway Brands insiders. They paid about US$22.93 on average. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Topgolf Callaway Brands
Many investors like to check how much of a company is owned by 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 11% of the company, worth about US$428m. 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's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Topgolf Callaway Brands. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Topgolf Callaway Brands you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here