Barclays Forecasts Strong Price Appreciation for Churchill Downs (NASDAQ:CHDN) Stock

Key Points

• Churchill Downs' price target was raised by Barclays from $127.00 to $131.00, indicating a potential 16.87% upside from its previous close.
• The company has experienced mixed analyst ratings, with one hold rating, eleven buy ratings, and an average consensus price target of $138.09.
• Churchill Downs reported earnings of $3.10 per share, exceeding estimates, and revenues of $934.40 million, showing a 4.9% year-over-year increase.
• Insider transactions included significant purchases by directors, indicating confidence in the company's future performance despite current market fluctuations.

Churchill Downs (NASDAQ:CHDN - Free Report) had its price objective raised by Barclays from $127.00 to $131.00 in a research note issued to investors on Friday morning,Benzinga reports. They currently have an overweight rating on the stock.

A number of other equities analysts have also recently weighed in on CHDN. Truist Financial decreased their price target on Churchill Downs from $150.00 to $145.00 and set a "buy" rating for the company in a report on Wednesday, July 16th. JPMorgan Chase & Co. began coverage on Churchill Downs in a research note on Monday, June 23rd. They set an "overweight" rating and a $116.00 target price for the company. Jefferies Financial Group reduced their target price on Churchill Downs from $160.00 to $127.00 and set a "buy" rating for the company in a research note on Friday, April 25th. Stifel Nicolaus increased their target price on Churchill Downs from $130.00 to $133.00 and gave the company a "buy" rating in a research note on Friday, July 11th. Finally, Wall Street Zen upgraded Churchill Downs from a "sell" rating to a "hold" rating in a research note on Thursday, April 24th. One research analyst has rated the stock with a hold rating and eleven have issued a buy rating to the company's stock. According to MarketBeat, Churchill Downs has a consensus rating of "Moderate Buy" and a consensus target price of $138.09.

Churchill Downs Trading Down 0.2%

Shares of NASDAQ:CHDN traded down $0.22 during trading on Friday, reaching $113.53. 1,116,996 shares of the stock were exchanged, compared to its average volume of 661,974. The company has a debt-to-equity ratio of 4.74, a quick ratio of 0.53 and a current ratio of 0.60. Churchill Downs has a 12-month low of $85.58 and a 12-month high of $150.21. The firm has a market cap of $7.96 billion, a price-to-earnings ratio of 19.51, a price-to-earnings-growth ratio of 3.13 and a beta of 0.95. The firm's 50-day moving average price is $100.83 and its 200 day moving average price is $107.51.

Churchill Downs (NASDAQ:CHDN - Get Free Report) last released its quarterly earnings results on Wednesday, July 23rd. The company reported $3.10 earnings per share for the quarter, topping analysts' consensus estimates of $3.03 by $0.07. The firm had revenue of $934.40 million during the quarter, compared to analysts' expectations of $924.36 million. Churchill Downs had a return on equity of 41.46% and a net margin of 15.22%. Churchill Downs's quarterly revenue was up 4.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.89 EPS. On average, sell-side analysts anticipate that Churchill Downs will post 6.92 earnings per share for the current fiscal year.

Insider Buying and Selling at Churchill Downs

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

Institutional Investors Weigh In On Churchill Downs

Large investors have recently added to or reduced their stakes in the stock. Geneos Wealth Management Inc. grew its stake in shares of Churchill Downs by 1,364.7% in the first quarter. Geneos Wealth Management Inc. now owns 249 shares of the company's stock worth $28,000 after purchasing an additional 232 shares in the last quarter. Elequin Capital LP bought a new position in shares of Churchill Downs in the first quarter worth $29,000. Signaturefd LLC boosted its stake in Churchill Downs by 161.1% during the second quarter. Signaturefd LLC now owns 329 shares of the company's stock valued at $33,000 after buying an additional 203 shares in the last quarter. MassMutual Private Wealth & Trust FSB boosted its stake 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 buying an additional 253 shares in the last quarter. Finally, Central Pacific Bank Trust Division boosted its stake in Churchill Downs by 39.6% during the first quarter. Central Pacific Bank Trust Division now owns 455 shares of the company's stock valued at $51,000 after buying an additional 129 shares in the last quarter. 82.59% of the stock is owned by institutional investors and hedge funds.

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.