What Happened?

Shares of golf equipment and apparel company Acushnet (NYSE: GOLF) jumped 4% in the afternoon session after KeyBanc raised its price target on the stock. The investment bank lifted its price target for Acushnet to $90 from $85, keeping an Overweight rating on the shares due to the company's strong earnings performance.

The shares closed the day at $91.32, up 3.5% from previous close.

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What Is The Market Telling Us

Acushnet’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 11 months ago when the stock gained 10% on the news that the S&P Dow Jones Indices announced that the company would be added to the S&P SmallCap 600 index before the opening of trading on Thursday, February 13, 2025. Being included in the index means that Acushnet will likely be held by many mutual funds and ETFs, which could potentially drive up demand for the stock. We note that while buying of the stock could increase, this development does not change the fundamentals of the company. Revenue growth, expense efficiency, and capital intensity of the business, for instance, are not impacted by index inclusion or exclusion, so this is more of a technical tailwind for the stock.

Acushnet is up 11.2% since the beginning of the year, and at $91.32 per share, has set a new 52-week high. Investors who bought $1,000 worth of Acushnet’s shares 5 years ago would now be looking at an investment worth $2,210.

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