Bullish Topgolf Callaway Brands Insiders Loaded Up On US$961.0k Of Stock

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Topgolf Callaway Brands Corp. (NYSE:MODG), it sends a favourable message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View 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 President Oliver Brewer bought US$349k worth of shares at a price of US$10.05 per share. Even though the purchase was made at a significantly lower price than the recent price (US$15.03), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Topgolf Callaway Brands insiders may have bought shares in the last year, but they didn't sell any. They paid about US$11.12 on average. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

Does Topgolf Callaway Brands Boast High 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. We usually like to see fairly high levels of insider ownership. Topgolf Callaway Brands insiders own about US$335m worth of shares (which is 12% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Topgolf Callaway Brands Insiders?

It doesn't really mean much that no insider has traded Topgolf Callaway Brands shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Topgolf Callaway Brands insiders feel good about the company's future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for Topgolf Callaway Brands you should know about.

Of course Topgolf Callaway Brands may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com