AREX Capital Loads Up on CALY With 453,000 Shares
Key Points
Initiated position: 453,000 shares acquired; estimated $5.29 million trade.
Quarter-end position value increased by $5.29 million due entirely to share purchases, as this was a new position.
Position accounts for 15.03% of 13F reportable AUM.
Callaway stake now ranks within the fund's top five holdings.
- 10 stocks we like better than Callaway Golf ›
What happened
According to a February 17, 2026, SEC filing, AREX Capital Management, LP, established a new position in Callaway Golf Company (NYSE:CALY), acquiring 453,000 shares. The estimated value of the trade was $5.29 million.
What else to know
This marks a new position for AREX Capital Management, LP, with CALY comprising 15.03% of reportable 13F assets after the filing.
Top five holdings after the filing:
- NYSE:EHAB: $22.99 million (65.36% of AUM)
- NYSE:CALY: $5.29 million (15.03% of AUM)
- NYSE:SKIL: $2.24 million (6.36% of AUM)
- NASDAQ:IAC: $1.82 million (5.17% of AUM)
- NYSE:VYX: $1.24 million (3.52% of AUM)
As of February 28, 2026, Callaway shares were priced at $14.06, up 115.3% over the past year and outperforming the S&P 500 by 99.78 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $2.06 billion |
| Net Income (TTM) | $38.8 million |
| Price (as of market close Feb. 27, 2026) | $14.06 |
Company Snapshot
Callaway Golf Company is a leading global provider of golf equipment, apparel, and technology-enabled entertainment venues. The company leverages a diversified business model that integrates product innovation with experiential offerings, such as Topgolf, to capture value across the golf and active lifestyle sectors.
With a broad portfolio of brands and international reach, Callaway Golf Company combines scale and brand recognition to serve both individual consumers and corporate clients, positioning itself as a key player in the consumer cyclical and leisure industry.
It targets golf enthusiasts, sports and leisure consumers, and corporate clients across the United States, Europe, Asia, and international markets.
What this transaction means for investors
Callaway Golf Company has experienced significant volatility over the last few years, but this transaction signals that the company may be back on the right path with room for growth going forward.
Callaway merged with Topgolf in 2021, but in early 2026, private equity firm Leonard Green & Partners acquired a 60% stake in Topgolf. This spinoff aims to help Callaway sharpen its strategic focus and streamline its operations. Given Topgolf’s struggles to increase revenue, Callaway’s decision to spin off the majority of the company could improve its growth potential.
Big moves like this can be risky from an investment standpoint, but they’re also a sign that a company is willing to make changes when something isn’t working. CALY’s performance since 2021 has been disappointing, with the stock falling by more than 85% between 2021 and 2025. Since April 2025, however, its price is up by more than 152%, signalling increased investor confidence.
Callaway remains a higher-risk stock given changes to its company structure over recent years, so investors should brace themselves for more volatility. But if these big changes pay off, the stock could be poised for more significant growth.
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Katie Brockman has no position in any of the stocks mentioned. The Motley Fool recommends Callaway Golf. The Motley Fool has a disclosure policy.
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