Churchill Downs (NASDAQ:CHDN) Trading Up 7.5% After Strong Earnings

Key Points

• Shares jumped 7.5% after Churchill Downs reported Q results with EPS of $1.21 versus $1.03 expected and revenue of $663.0M (vs. $659.3M), with revenue up 3.1% year‑over‑year.
• Analysts are broadly bullish—11 Buy ratings and 1 Hold—with an average target of $135.60 and recent price-target increases from firms like Wells Fargo and Citizens JMP.
• Institutional investors own about 82.59% of the stock; the company has a $6.84B market cap, a P/E of 18.3 and a high debt‑to‑equity ratio of 5.02.

Churchill Downs, Incorporated (NASDAQ:CHDN - Get Free Report) shares traded up 7.5% on Thursday following a stronger than expected earnings report. The stock traded as high as $96.98 and last traded at $95.5740. 174,486 shares traded hands during trading, a decline of 81% from the average session volume of 924,948 shares. The stock had previously closed at $88.94.

The company reported $1.21 earnings per share for the quarter, beating analysts' consensus estimates of $1.03 by $0.18. The company had revenue of $663.00 million for the quarter, compared to analysts' expectations of $659.32 million. Churchill Downs had a net margin of 13.09% and a return on equity of 43.26%. Churchill Downs's revenue for the quarter was up 3.1% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.07 EPS.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on CHDN. Wells Fargo & Company reaffirmed an "overweight" rating and issued a $130.00 target price (up from $124.00) on shares of Churchill Downs in a report on Thursday, April 16th. Jefferies Financial Group reissued a "buy" rating on shares of Churchill Downs in a research note on Tuesday. Citizens Jmp upped their target price on Churchill Downs from $142.00 to $146.00 and gave the company a "market outperform" rating in a research note on Wednesday, January 14th. Finally, Citigroup reiterated an "outperform" rating on shares of Churchill Downs in a report on Wednesday, January 14th. Eleven investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, Churchill Downs has an average rating of "Moderate Buy" and an average target price of $135.60.

Hedge Funds Weigh In On Churchill Downs

Institutional investors have recently made changes to their positions in the company. Capital International Investors grew its holdings in Churchill Downs by 16.3% during the 3rd quarter. Capital International Investors now owns 3,098,598 shares of the company's stock worth $300,595,000 after acquiring an additional 434,669 shares in the last quarter. State Street Corp grew its position in shares of Churchill Downs by 0.6% in the 4th quarter. State Street Corp now owns 1,956,295 shares of the company's stock worth $223,424,000 after buying an additional 11,523 shares during the last quarter. Jennison Associates LLC grew its position in shares of Churchill Downs by 52.3% in the 3rd quarter. Jennison Associates LLC now owns 1,457,336 shares of the company's stock worth $141,376,000 after buying an additional 500,395 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its stake 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 in the last quarter. Finally, Geode Capital Management LLC lifted its position in Churchill Downs by 2.5% during the fourth quarter. Geode Capital Management LLC now owns 1,327,655 shares of the company's stock valued at $151,089,000 after acquiring an additional 32,445 shares during the last quarter. Hedge funds and other institutional investors own 82.59% of the company's stock.

Churchill Downs Price Performance

The company has a market cap of $6.84 billion, a PE ratio of 18.30, a PEG ratio of 1.36 and a beta of 0.65. The company has a debt-to-equity ratio of 5.02, a current ratio of 0.60 and a quick ratio of 0.60. The stock's 50-day moving average is $89.12 and its 200 day moving average is $98.73.

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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