Some Topgolf Callaway Brands Corp. (NYSE:MODG) shareholders may be a little concerned to see that the Chief Executive Officer of Topgolf International, Arthur Starrs, recently sold a substantial US$922k worth of stock at a price of US$8.64 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 50% of their entire holding.
The Last 12 Months Of Insider Transactions At Topgolf Callaway Brands
The Independent Director Adebayo Ogunlesi made the biggest insider purchase in the last 12 months. That single transaction was for US$3.1m worth of shares at a price of US$7.59 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$9.68. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 905.28k shares for US$5.9m. But they sold 132.44k shares for US$1.2m. Overall, Topgolf Callaway Brands insiders were net buyers during the last year. The average buy price was around US$6.55. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Topgolf Callaway Brands
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Topgolf Callaway Brands Boast High Insider Ownership?
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 13% of the company, worth about US$204m. 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 is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Topgolf Callaway Brands. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Topgolf Callaway Brands you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.