Over the last year, a good number of insiders have significantly increased their holdings in Topgolf Callaway Brands Corp. (NYSE:MODG). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Topgolf Callaway Brands Insider Transactions Over The Last Year
The Independent Director Adebayo Ogunlesi made the biggest insider purchase in the last 12 months. That single transaction was for US$1.9m worth of shares at a price of US$19.45 each. That means that an insider was happy to buy shares at above the current price of US$14.82. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Topgolf Callaway Brands insiders bought shares during the last year, they didn't sell. The average buy price was around US$15.84. I'd consider this a positive as it suggests insiders see value at around the current 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Topgolf Callaway Brands Insiders Bought Stock Recently
It's good to see that Topgolf Callaway Brands insiders have made notable investments in the company's shares. Overall, two insiders shelled out US$189k for shares in the company -- and none sold. This makes one think the business has some good points.
Does Topgolf Callaway Brands Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Topgolf Callaway Brands insiders own about US$318m worth of shares (which is 12% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Topgolf Callaway Brands Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Topgolf Callaway Brands. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Topgolf Callaway Brands. At Simply Wall St, we found 2 warning signs for Topgolf Callaway Brands that deserve your attention before buying any shares.
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.