In the financial world, there are a multitude of gauges market participants can use to watch publicly traded companies. A couple of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite money managers can outclass their index-focused peers by a superb margin (see just how much).
Just as useful, bullish insider trading sentiment is another way to analyze the stock market universe. As the old adage goes: there are a number of motivations for an upper level exec to cut shares of his or her company, but just one, very clear reason why they would behave bullishly. Many empirical studies have demonstrated the useful potential of this tactic if piggybackers know what to do (learn more here).
What’s more, we’re going to study the newest info about Callaway Golf Co (NYSE:ELY).
What have hedge funds been doing with Callaway Golf Co (NYSE:ELY)?
Heading into Q3, a total of 12 of the hedge funds we track were bullish in this stock, a change of 33% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their stakes significantly.
According to our 13F database, Chuck Royce’s Royce & Associates had the most valuable position in Callaway Golf Co (NYSE:ELY), worth close to $24.4 million, comprising 0.1% of its total 13F portfolio. Sitting at the No. 2 spot is Diamond Hill Capital, managed by Ric Dillon, which held a $8.9 million position; 0.1% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism include Kerr Neilson’s Platinum Asset Management, Youlia Miteva’s Proxima Capital Management and John W. Rogers’s Ariel Investments.
Now, certain money managers have jumped into Callaway Golf Co (NYSE:ELY) headfirst. Royce & Associates, managed by Chuck Royce, initiated the biggest position in Callaway Golf Co (NYSE:ELY). Royce & Associates had 24.4 million invested in the company at the end of the quarter. Ric Dillon’s Diamond Hill Capital also initiated a $8.9 million position during the quarter. The following funds were also among the new ELY investors: Kerr Neilson’s Platinum Asset Management, Youlia Miteva’s Proxima Capital Management, and John W. Rogers’s Ariel Investments.
What have insiders been doing with Callaway Golf Co (NYSE:ELY)?
Insider buying made by high-level executives is best served when the company we’re looking at has seen transactions within the past six months. Over the last 180-day time period, Callaway Golf Co (NYSE:ELY) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to Callaway Golf Co (NYSE:ELY). These stocks are Escalade, Inc. (NASDAQ:ESCA), Pool Corporation (NASDAQ:POOL), Nautilus, Inc. (NYSE:NLS), Johnson Outdoors Inc. (NASDAQ:JOUT), and Black Diamond Inc (NASDAQ:BDE). This group of stocks are in the sporting goods industry and their market caps are similar to ELY’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Escalade, Inc. (NASDAQ:ESCA) | 0 | 0 | |
| Pool Corporation (NASDAQ:POOL) | 11 | 0 | 0 |
| Nautilus, Inc. (NYSE:NLS) | 13 | 0 | 0 |
| Johnson Outdoors Inc. (NASDAQ:JOUT) | 4 | 0 | 0 |
| Black Diamond Inc (NASDAQ:BDE) | 9 | 0 | 0 |
Using the results explained by the previously mentioned tactics, regular investors must always pay attention to hedge fund and insider trading activity, and Callaway Golf Co (NYSE:ELY) shareholders fit into this picture quite nicely.
