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

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

Churchill Downs Stock Performance

NASDAQ CHDN traded up $2.04 during mid-day trading on Friday, reaching $98.08. 586,297 shares of the stock were exchanged, compared to its average volume of 579,628. The business's 50 day moving average is $97.29 and its 200-day moving average is $115.64. Churchill Downs has a 1 year low of $85.58 and a 1 year high of $150.21. The company has a market capitalization of $7.08 billion, a P/E ratio of 17.27, a P/E/G ratio of 2.95 and a beta of 0.94. The company has a debt-to-equity ratio of 4.47, a quick ratio of 0.55 and a current ratio of 0.57.

Churchill Downs (NASDAQ:CHDN - Get Free Report) last announced its quarterly 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). The firm had revenue of $642.60 million for the quarter, compared to analysts' expectations of $649.68 million. Churchill Downs had a return on equity of 43.67% and a net margin of 15.61%. The business's quarterly revenue was up 8.7% on a year-over-year basis. During the same period last year, the company posted $1.13 earnings per share. On average, equities research analysts forecast that Churchill Downs will post 6.92 EPS for the current fiscal year.

Churchill Downs Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, April 15th. Shareholders of record on Monday, March 31st were issued a dividend of $0.06 per share. This represents a $0.24 annualized dividend and a yield of 0.24%. Churchill Downs's payout ratio is 7.12%.

Churchill Downs declared that its board has initiated a stock buyback plan on Wednesday, March 12th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 6.4% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at Churchill Downs

In other Churchill Downs news, Director R Alex Rankin acquired 2,000 shares of the business's stock in a transaction dated Monday, May 5th. The shares were purchased at an average price of $92.65 per share, for a total transaction of $185,300.00. Following the completion of the purchase, the director now directly owns 99,012 shares of the company's stock, valued at $9,173,461.80. The trade was a 2.06% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Douglas C. Grissom acquired 10,000 shares of the business's stock in a transaction dated Wednesday, May 7th. The stock was acquired at an average price of $92.77 per share, for a total transaction of $927,700.00. Following the purchase, the director now directly owns 38,869 shares of the company's stock, valued at approximately $3,605,877.13. This trade represents a 34.64% increase in their ownership of the stock. The disclosure for this purchase can be found here. 5.34% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Churchill Downs

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

Wall Street Analysts Forecast Growth

CHDN has been the topic of a number of research reports. Barclays cut their price objective on shares of Churchill Downs from $125.00 to $124.00 and set an "overweight" rating on the stock in a research note on Friday, April 25th. Mizuho cut their price objective on shares of Churchill Downs from $137.00 to $134.00 and set an "outperform" rating on the stock in a research note on Friday, May 23rd. Truist Financial cut their price objective on shares of Churchill Downs from $162.00 to $155.00 and set a "buy" rating on the stock in a research note on Wednesday, April 23rd. Wells Fargo & Company cut their price objective on shares of Churchill Downs from $165.00 to $158.00 and set an "overweight" rating on the stock in a research note on Friday, February 21st. Finally, Susquehanna cut their price objective on shares of Churchill Downs from $150.00 to $136.00 and set a "positive" rating on the stock in a research note on Tuesday, April 22nd. One equities research analyst has rated the stock with a hold rating and ten have issued a buy rating to the company. According to MarketBeat.com, Churchill Downs has an average rating of "Moderate Buy" and an average price target of $142.30.

About Churchill Downs

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.