Callaway Golf’s stock soars after activist discloses big stake and pushes for sale

It’s fitting: Shares of Callaway Golf are soaring on the first day of action at the US Open. But the stock isn’t moving because of anything happening at Pebble Beach.

Activist investor Jana Partners disclosed a big stake in Callaway, and it’s pushing for a sale of the company.

Jana Partners reported in a Securities and Exchange Commission filing Thursday that it has acquired a more than 9% stake in Callaway Golf, the maker of the popular Big Bertha, X Hot and X2 Hot line of clubs and drivers.

Callaway’s stock surged nearly 15% on the news. Shares of another publicly traded golf company, Titleist owner Acushnet, rose more than 3% as well.

Jana is led by influential hedge fund manager Barry Rosenstein. The firm said that Callaway’s stock was still undervalued, even though Callway was “driving innovation and durable market share gains in its core golf business.”

Several other individual investors are backing Jana’s attempts to boost the company’s value. Among them is Cynthia Davis, a former Nike executive who served as president of the sporting giant’s golf division.

Shares of Callaway are down 10% over the past 12 months, even though the stock rallied earlier this year following the stunning victory by Woods in the Masters in April. Woods does not endorse Callaway. But CEO Chip Brewer noted last month that Tiger’s comeback is great news for the sport.

Callaway was not immediately available for comment about Jana’s investment.