Churchill Downs (NASDAQ:CHDN) Price Target Cut to $117.00 by Analysts at Wells Fargo & Company

Key Points

• Wells Fargo cut Churchill Downs’ price target from $120 to $117 while maintaining an “overweight” rating, still implying approximately 38% upside from the recent $84.79 share price.
• Analyst sentiment remains broadly positive: nine analysts rate the stock a Buy and one rates it a Sell, producing a “Moderate Buy” consensus and an average target of $136.62.
• Churchill Downs reported quarterly revenue of $980 million, up 4.9% year over year, while earnings of $3.45 per share matched consensus estimates; the stock remains near the lower end of its 52-week range and carries substantial leverage.

Churchill Downs (NASDAQ:CHDN - Get Free Report) had its target price cut by analysts at Wells Fargo & Company from $120.00 to $117.00 in a research note issued to investors on Friday,Benzinga reports. The firm presently has an "overweight" rating on the stock. Wells Fargo & Company's price objective would indicate a potential upside of 37.99% from the company's previous close.

A number of other analysts have also recently commented on CHDN. Truist Financial set a $145.00 price objective on Churchill Downs in a research report on Friday, June 12th. Weiss Ratings lowered shares of Churchill Downs from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, May 4th. Susquehanna raised their price target on shares of Churchill Downs from $121.00 to $124.00 and gave the stock a "positive" rating in a research note on Friday. Citigroup reiterated an "outperform" rating on shares of Churchill Downs in a report on Friday. Finally, Mizuho boosted their price objective on shares of Churchill Downs from $146.00 to $155.00 and gave the company an "outperform" rating in a research report on Friday, April 24th. Nine equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Churchill Downs presently has a consensus rating of "Moderate Buy" and a consensus target price of $136.62.

Churchill Downs Price Performance

NASDAQ:CHDN traded up $2.10 during trading hours on Friday, reaching $84.79. 153,538 shares of the company traded hands, compared to its average volume of 970,057. The company has a debt-to-equity ratio of 4.44, a current ratio of 0.54 and a quick ratio of 0.54. The firm's 50-day moving average is $86.83 and its 200-day moving average is $90.46. The stock has a market cap of $5.91 billion, a P/E ratio of 14.55, a P/E/G ratio of 0.57 and a beta of 0.67. Churchill Downs has a 1-year low of $79.40 and a 1-year high of $118.35.

Churchill Downs (NASDAQ:CHDN - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The company reported $3.45 earnings per share for the quarter, hitting analysts' consensus estimates of $3.45. Churchill Downs had a return on equity of 45.12% and a net margin of 13.82%.The company had revenue of $980.00 million during the quarter, compared to analysts' expectations of $977.38 million. During the same period in the previous year, the firm posted $3.10 earnings per share. The business's revenue for the quarter was up 4.9% compared to the same quarter last year. Equities research analysts expect that Churchill Downs will post 7.14 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Churchill Downs

Several institutional investors have recently added to or reduced their stakes in CHDN. State Street Corp grew its holdings in Churchill Downs by 0.6% in the 4th quarter. State Street Corp now owns 1,956,295 shares of the company's stock valued at $223,424,000 after buying an additional 11,523 shares during the period. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Churchill Downs by 0.6% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,384,089 shares of the company's stock worth $157,482,000 after acquiring an additional 7,687 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Churchill Downs by 2.5% during the 4th quarter. Geode Capital Management LLC now owns 1,327,655 shares of the company's stock worth $151,089,000 after acquiring an additional 32,445 shares during the period. Boston Partners boosted its position in shares of Churchill Downs by 0.9% in the third quarter. Boston Partners now owns 1,257,725 shares of the company's stock worth $121,998,000 after acquiring an additional 11,653 shares during the last quarter. Finally, William Blair Investment Management LLC boosted its position in shares of Churchill Downs by 12.5% in the fourth quarter. William Blair Investment Management LLC now owns 1,145,413 shares of the company's stock worth $130,325,000 after acquiring an additional 127,687 shares during the last quarter. 82.59% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Churchill Downs

Here are the key news stories impacting Churchill Downs this week:

• Positive Sentiment: Analyst support increased. Susquehanna raised its price target from $121 to $124 and assigned a “Positive” rating, implying substantial upside from the recent trading level. Benzinga
• Positive Sentiment: Second-quarter revenue grew. CHDN reported $980 million in revenue, up 4.9% year over year and modestly ahead of the roughly $977 million consensus. Adjusted earnings were $3.45 per share, up from $3.10 a year earlier and in line with the company-referenced consensus, though below Zacks’ $3.51 estimate. Second-Quarter Results
• Positive Sentiment: United Tote ownership is increasing. Churchill Downs agreed to buy NYRA’s 49% stake in United Tote, giving it full ownership of the pari-mutuel wagering technology and services business. The deal could strengthen operational control and create additional long-term growth opportunities. United Tote Acquisition
• Neutral Sentiment: Large Churchill Downs projects remain underway. The company is investing approximately $285 million in the Victory Run development ahead of the 2028 Kentucky Derby, alongside expanded club and infield seating projects. These investments may support future event revenue but increase near-term capital requirements. Victory Run Buildout
• Neutral Sentiment: CHDN is reviewing the sale of nine regional casinos. Asset sales could generate cash and sharpen the company’s portfolio, but proceeds, timing and the effect on future earnings remain uncertain. Strategic Gaming Asset Review
• Negative Sentiment: The earnings reaction was unfavorable. Despite revenue growth and earnings meeting one consensus measure, investors appear to have viewed the quarter and conference-call commentary as insufficient against high Derby-related expectations. Concerns about margins, guidance or the pace of growth likely contributed to the selloff.

About Churchill Downs

Churchill Downs Incorporated is a leading American entertainment and gaming company best known for operating the Churchill Downs racetrack in Louisville, Kentucky, home of the annual Kentucky Derby. Beyond its signature thoroughbred racing venue, the company manages a diversified portfolio of live racing facilities, casinos, and off-track betting operations. Its services encompass pari-mutuel wagering, historical horse racing machines, and online betting through its TwinSpires platform, reaching horse racing and sports betting enthusiasts nationwide.

In its live racing segment, Churchill Downs oversees a network of racetracks and racing festivals, offering year-round events in multiple states.

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