HomeGOLF

Callaway Golf initiates $ 50 million share buyback

Callaway Golf accelerates share buyback. The American golf equipment company has begun a process of repurchase of shares of the company itse


Callaway Golf accelerates share buyback. The American golf equipment company has begun a process of repurchase of shares of the company itself for 50 million dollars.

The buyback authorization thus replaces the buyback program that Callaway had started before the outbreak of the pandemic, which has been canceled by the board of directors.

“The repurchases will be made in accordance with the terms of the company’s credit lines, which will define the number of shares that can be repurchased,” Callaway said in a statement.

Listed companies have several options for targeting their net profits. Between them, companies may decide to reinvest them in new projects such as hiring more staff or buying other companies.

The resulting amount can be distributed among shareholders in the form of a dividend, or they can choose to buy back their shares, with certain limits. These buybacks result in fewer stocks in circulation, so future profits will be spread across fewer hands, but earnings per share will also rise.

In mid-May, Callaway Golf increased its sales by 47% in the first quarter of 2021 to $ 652 million, a record for the manufacturer. The group multiplied his benefits from the Topgolf merger almost tenfold, up to $ 272.46 million.