Callaway Stock Has Soared 150%. Here’s Why One Fund Still Bought 1.1 Million Shares
Key Points
Nicholas Investment Partners initiated a new position in Callaway Golf Company with 1,125,984 shares; the estimated trade value is $15.80 million based on quarterly average pricing.
The quarter-end position value increased by $15.63 million, reflecting both the purchase and market price movement during the period.
The transaction represented a 1.14% change in 13F reportable assets under management.
- 10 stocks we like better than Callaway Golf ›
On May 15, 2026, Nicholas Investment Partners, LP disclosed a new position in Callaway Golf Company (NYSE:CALY), acquiring 1,125,984 shares in an estimated $15.80 million trade based on quarterly average pricing.
What happened
According to a Securities and Exchange Commission (SEC) filing dated May 15, 2026, Nicholas Investment Partners, LP reported a new position in Callaway Golf Company (NYSE:CALY), purchasing 1,125,984 shares. The estimated transaction value is $15.80 million, calculated using the average unadjusted closing price for the first quarter. The position’s quarter-end value stood at $15.63 million, reflecting both the acquisition and changes in market price during the period.
What else to know
- Top holdings after the filing:
- NYSE:BWXT: $53.55 million (4.3% of AUM)
- NASDAQ:INSM: $29.85 million (2.4% of AUM)
- NASDAQ:KTOS: $27.56 million (2.2% of AUM)
- NYSE:GEV: $26.54 million (2.1% of AUM)
- NASDAQ:RVMD: $25.40 million (2.1% of AUM)
- As of May 14, 2026, shares of Callaway Golf Company were priced at $15.22, up 150% over the past year and significantly outperforming the S&P 500’s roughly 25% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $2.06 billion |
| Net income (TTM) | $38.8 million |
| Price (as of market close May 14, 2026) | $15.22 |
Company snapshot
- Callaway Golf Company offers golf equipment, apparel, accessories, and operates Topgolf venues; key revenue streams include sales of branded golf products and experiential entertainment.
- The firm generates revenue through product sales to retailers and direct-to-consumer channels, as well as recurring revenue from Topgolf venue operations and technology licensing.
- It targets golf enthusiasts, sports and leisure consumers, and corporate or group event customers across the United States, Europe, Asia, and other international markets.
Callaway Golf Company operates in three business segments: Topgolf, Golf Equipment, and Active Lifestyle, combining product offerings with experiential entertainment. It sells its products through retailers, online retailers, and directly to consumers through its retail stores and websites, and operates in the consumer cyclical sector.
What this transaction means for investors
Rather than chasing a beaten-down value name, Nicholas Investment Partners appears to be leaning into improving fundamentals and a cleaner balance sheet as Callaway reshapes itself following the Topgolf separation.
The company’s latest quarter offers hints as to why. First-quarter sales climbed 9% to $687.5 million, while adjusted EBITDA jumped 31% to $163.7 million. Gross margin expanded by roughly 250 basis points as stronger product demand and pricing initiatives offset tariff pressures. Golf club sales rose nearly 12%, helped by new product launches, while TravisMathew continued driving growth in apparel.
Notably, management also raised its full-year outlook, now expecting up to $2.07 billion in revenue and as much as $233 million in adjusted EBITDA. Adding to bullish indicators, the company repurchased $79 million of stock through April and fully settled $258 million of convertible notes in cash while maintaining a net cash position.
For long-term investors, the key question is whether Callaway can keep translating golf participation trends and brand momentum into durable earnings growth now that management is fully refocused on the core business.
Should you buy stock in Callaway Golf right now?
Before you buy stock in Callaway Golf, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Callaway Golf wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $468,861!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,445,212!*
Now, it’s worth noting Stock Advisor’s total average return is 1,013% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 15, 2026.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends BWX Technologies, GE Vernova, and Kratos Defense & Security Solutions. The Motley Fool recommends Callaway Golf. The Motley Fool has a disclosure policy.
Recommended Articles
