Callaway Golf is changing its name to Topgolf Callaway Brands, highlighting that the trendy Topgolf driving range/entertainment venues are expected to become the “embedded growth engine” for the Carlsbad company in coming years.

As part of the name change, Callaway also will be switching out its New York Stock Exchange ticker symbol from ELY to MODG, which alludes to the company’s “modern golf” strategy.

Modern golf is centered on evolving the game so it’s more accessible and inclusive, particularly for younger players. That means promoting a more relaxed atmosphere on traditional golf courses, as well as providing off-course golf-centric entertainment options such as Topgolf.

“With the change, our new corporate identity will reinforce the opportunities that are anchored in our strong heritage business and at the same time build important awareness for our strategic shift towards exciting new ventures in the Modern Golf and active lifestyle segments,” said Chief Executive Chip Brewer in a statement.

Callaway first invested in Topgolf in 2006 and held a 14 percent stake when it announced in late 2020 that it was buying the Dallas-based company for $2.6 billion in stock. The deal closed in March 2021.

Among golf industry followers, the name and ticker symbol changes generated some sentimentality for Ely Reeves Callaway Jr., the iconic founder of the company who passed away in 2001.

Not only did Callaway put his name on the firm’s golf products, but he also made it part of the company’s identity on Wall Street.

“Ticker symbols are meant to be memorable,” said Casey Alexander, an analyst with Compass Point Research and Trading. “It used to be an incredible badge of honor to have a single-letter ticker symbol. U.S. Steel — X. AT&T — T.

“I think the modern golf — MODG — that is a tougher symbol,” continued Alexander. “While I understand that is the space that (Callaway) believes that they occupy now, it is not a well-defined space. There is some nostalgic connection to the ELY symbol, and I think they could have changed the name to Topgolf Callaway Brands and still left it as ELY.”

That said, Alexander supported the name change and previously suggested a switch that highlighted Topgolf, which is expected to be the largest division in the company by 2024.

“Clearly, Topgolf is the embedded growth engine of the company,” he said. “They are opening 11 venues a year. It will become the biggest division by default simply because golf equipment can’t keep pace with a business that can open new locations at double-digit rates. “

Topgolf already has become a major contributor to Callaway’s revenue. Through the first six months of this year, its 70 venues generated $726 million as attendance snapped back from the pandemic.

Meanwhile, golf equipment sales totaled $920 million, while the lifestyle apparel and gear segment rung up $510 million.

San Diego County doesn’t have a Topgolf location yet. But Port of San Diego has signaled its informal approval of a Topgolf driving range on 8.5 acres of waterfront land on East Harbor Island.

Besides Topgolf and Callaway, other brands under the company’s umbrella include TravisMathew, Toptracer, Odyssey, OGIO, Jack Wolfskin, and World Golf Tour.

Callaway expects the corporate name change to be effective around Sept. 6. The next day, the ticker symbol change will occur. Topgolf Callaway Brands will continue to be led by the current Callaway Golf management team.

Callaway’s shares ended trading Thursday up 2.5 percent at $23.58 on the New York Stock Exchange.

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