CALY Should I Buy
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Callaway Golf Co (CALY) is not a strong buy for a beginner, long-term investor at this time. Despite positive analyst sentiment and some potential catalysts, the recent financial performance, negative price movement, and lack of immediate trading signals suggest waiting for more stability or a better entry point.
The stock closed at $12.84, down significantly from its previous close of $14.82, with a post-market decline of -13.36%. This indicates a bearish trend. Historical data suggests a 50% chance of minor gains (+0.31%) in the next day but a potential decline (-1.55%) in the next week.
Analysts have raised price targets recently, with Truist, JPMorgan, B. Riley, and Morgan Stanley expressing optimism about the company's growth potential.
The golf industry shows strong participation and growth momentum, with Callaway positioned well in the sector.
The company completed strategic initiatives in 2025, including debt reduction and divestitures, which could improve long-term financial health.
Recent Q4 2025 financial results showed a decline in net sales (-1.1%) and an increased operating loss ($54.1 million).
The stock experienced a sharp post-market decline (-13.36%), reflecting negative sentiment.
The company's revenue dropped in 2025/Q3 (-7.79% YoY), indicating challenges in maintaining growth.
No recent trading activity from hedge funds, insiders, or Congress, signaling a lack of confidence or interest.
In Q4 2025, net sales declined by 1.1% to $367.5 million, and the company reported a GAAP operating loss of $54.1 million, up from $24.6 million in the prior year. However, for 2026, the company projects net sales between $1.98 billion and $2.05 billion, with adjusted EBITDA expected to range from $170 million to $195 million. In 2025/Q3, revenue dropped by 7.79% YoY, but net income and EPS improved significantly, indicating some operational improvements.
Analysts are generally positive on Callaway Golf, with multiple upgrades and price target increases. Truist raised the price target to $17, B. Riley to $19, JPMorgan to $16, and Morgan Stanley to $17. Analysts cite strong golf fundamentals, increased participation, and new product launches as key growth drivers.
