Churchill Downs Incorporated (NASDAQ:CHDN) Sees Significant Increase in Short Interest

Churchill Downs Incorporated (NASDAQ:CHDN - Get Free Report) saw a large increase in short interest in the month of May. As of May 15th, there was short interest totalling 1,970,000 shares, an increase of 18.0% from the April 30th total of 1,670,000 shares. Currently, 2.8% of the company's shares are sold short. Based on an average daily volume of 854,100 shares, the short-interest ratio is presently 2.3 days.

Churchill Downs Stock Up 2.1%

Shares of CHDN traded up $2.04 during midday trading on Friday, hitting $98.08. The stock had a trading volume of 586,297 shares, compared to its average volume of 580,603. The firm has a market cap of $7.08 billion, a price-to-earnings ratio of 17.27, a price-to-earnings-growth ratio of 2.95 and a beta of 0.94. The company has a 50 day simple moving average of $97.29 and a two-hundred day simple moving average of $115.47. Churchill Downs has a twelve month low of $85.58 and a twelve month high of $150.21. The company has a debt-to-equity ratio of 4.47, a current ratio of 0.57 and a quick ratio of 0.55.

Churchill Downs (NASDAQ:CHDN - Get Free Report) last announced its earnings results on Wednesday, April 23rd. The company reported $1.07 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.08 by ($0.01). Churchill Downs had a net margin of 15.61% and a return on equity of 43.67%. The firm had revenue of $642.60 million during the quarter, compared to analyst estimates of $649.68 million. During the same period in the prior year, the business posted $1.13 EPS. The firm's quarterly revenue was up 8.7% compared to the same quarter last year. On average, analysts anticipate that Churchill Downs will post 6.92 EPS for the current year.

Churchill Downs declared that its board has authorized a share repurchase plan on Wednesday, March 12th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to reacquire up to 6.4% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's management believes its shares are undervalued.

Churchill Downs Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, April 15th. Stockholders of record on Monday, March 31st were given a $0.06 dividend. This represents a $0.24 dividend on an annualized basis and a dividend yield of 0.24%. Churchill Downs's dividend payout ratio is presently 7.12%.

Insider Buying and Selling at Churchill Downs

In related news, Director R Alex Rankin bought 2,000 shares of the business's stock in a transaction on Monday, May 5th. The shares were purchased at an average price of $92.65 per share, with a total value of $185,300.00. Following the completion of the purchase, the director now owns 99,012 shares of the company's stock, valued at $9,173,461.80. This represents a 2.06% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Douglas C. Grissom bought 10,000 shares of Churchill Downs stock in a transaction on Wednesday, May 7th. The shares were bought at an average price of $92.77 per share, for a total transaction of $927,700.00. Following the acquisition, the director now owns 38,869 shares of the company's stock, valued at approximately $3,605,877.13. The trade was a 34.64% increase in their position. The disclosure for this purchase can be found here. Corporate insiders own 5.34% of the company's stock.

Institutional Investors Weigh In On Churchill Downs

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Blue Trust Inc. boosted its stake in shares of Churchill Downs by 127.2% during the 4th quarter. Blue Trust Inc. now owns 184 shares of the company's stock worth $25,000 after buying an additional 103 shares during the last quarter. Geneos Wealth Management Inc. raised its holdings in Churchill Downs by 1,364.7% during the first quarter. Geneos Wealth Management Inc. now owns 249 shares of the company's stock worth $28,000 after acquiring an additional 232 shares in the last quarter. Elequin Capital LP bought a new stake in Churchill Downs during the first quarter worth about $29,000. MassMutual Private Wealth & Trust FSB boosted its position in Churchill Downs by 159.1% during the first quarter. MassMutual Private Wealth & Trust FSB now owns 412 shares of the company's stock valued at $46,000 after purchasing an additional 253 shares during the last quarter. Finally, Central Pacific Bank Trust Division grew its stake in Churchill Downs by 39.6% in the first quarter. Central Pacific Bank Trust Division now owns 455 shares of the company's stock valued at $51,000 after purchasing an additional 129 shares in the last quarter. 82.59% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

CHDN has been the topic of several recent analyst reports. Wall Street Zen raised shares of Churchill Downs from a "sell" rating to a "hold" rating in a research note on Thursday, April 24th. Truist Financial reduced their price target on shares of Churchill Downs from $162.00 to $155.00 and set a "buy" rating on the stock in a research report on Wednesday, April 23rd. Macquarie lowered their price objective on shares of Churchill Downs from $172.00 to $154.00 and set an "outperform" rating for the company in a research report on Thursday, April 24th. JMP Securities dropped their price objective on Churchill Downs from $144.00 to $138.00 and set a "market outperform" rating on the stock in a research note on Tuesday, May 27th. Finally, Susquehanna decreased their target price on Churchill Downs from $150.00 to $136.00 and set a "positive" rating for the company in a research note on Tuesday, April 22nd. One research analyst has rated the stock with a hold rating and ten have assigned a buy rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $142.30.

Churchill Downs Company Profile

Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort.