Churchill Downs (NASDAQ:CHDN) Trading Down 5.7% - What's Next?

Key Points

• Churchill Downs stock fell 5.7% to about $93 on Monday, with volume (~400k shares) down roughly 58% from its average session level.
• Analysts remain broadly positive — 11 Buy ratings and 1 Hold, a consensus target of $139, and several firms raising targets to as high as $155.
• The company beat the April quarter estimates ($1.21 EPS vs $1.06 expected; $663M revenue, +3.1% YoY) but shows high leverage (debt/equity ~4.44) alongside a strong ROE (~43.5%).

Churchill Downs, Incorporated (NASDAQ:CHDN - Get Free Report) fell 5.7% during trading on Monday . The stock traded as low as $93.18 and last traded at $93.0030. 399,972 shares were traded during trading, a decline of 58% from the average session volume of 958,432 shares. The stock had previously closed at $98.65.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. Jefferies Financial Group reissued a "buy" rating on shares of Churchill Downs in a report on Tuesday, April 21st. Mizuho lifted their price target on Churchill Downs from $146.00 to $155.00 and gave the stock an "outperform" rating in a report on Friday, April 24th. Wells Fargo & Company reissued an "overweight" rating and set a $130.00 price target (up from $124.00) on shares of Churchill Downs in a report on Thursday, April 16th. Citizens Jmp lifted their price target on Churchill Downs from $146.00 to $149.00 and gave the stock a "market outperform" rating in a report on Friday, April 24th. Finally, Citigroup reissued an "outperform" rating on shares of Churchill Downs in a report on Friday, April 24th. Eleven research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $139.00.

Churchill Downs Stock Performance

The firm has a market capitalization of $6.39 billion, a price-to-earnings ratio of 16.98, a PEG ratio of 0.65 and a beta of 0.73. The company has a debt-to-equity ratio of 4.44, a quick ratio of 0.54 and a current ratio of 0.54. The company has a fifty day moving average of $90.35 and a two-hundred day moving average of $99.19.

Churchill Downs (NASDAQ:CHDN - Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The company reported $1.21 earnings per share for the quarter, beating the consensus estimate of $1.06 by $0.15. The firm had revenue of $663.00 million during the quarter, compared to analysts' expectations of $659.32 million. Churchill Downs had a return on equity of 43.50% and a net margin of 13.21%.The company's quarterly revenue was up 3.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.07 EPS. As a group, equities research analysts predict that Churchill Downs, Incorporated will post 7.32 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Churchill Downs

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CHDN. Measured Wealth Private Client Group LLC acquired a new position in Churchill Downs in the 3rd quarter valued at $25,000. First Horizon Corp acquired a new position in Churchill Downs in the 3rd quarter valued at $26,000. Quent Capital LLC acquired a new position in Churchill Downs in the 3rd quarter valued at $27,000. Geneos Wealth Management Inc. raised its holdings in Churchill Downs by 1,364.7% in the 1st quarter. Geneos Wealth Management Inc. now owns 249 shares of the company's stock valued at $28,000 after acquiring an additional 232 shares in the last quarter. Finally, Farther Finance Advisors LLC raised its holdings in Churchill Downs by 1,670.6% in the 3rd quarter. Farther Finance Advisors LLC now owns 301 shares of the company's stock valued at $29,000 after acquiring an additional 284 shares in the last quarter. 82.59% of the stock is owned by institutional investors and hedge funds.

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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