Churchill Downs, Incorporated (NASDAQ:CHDN) Stock Has Average Target Price of $126.70

Key Points

• Analysts remain bullish on Churchill Downs: Eleven of 12 covering firms rate the stock a buy, versus one hold, with an average 12-month price target of $126.70.
• Third-quarter results exceeded expectations. Adjusted EPS was $1.23 versus the $1.13 consensus estimate, while revenue rose 1.9% year over year to $696 million.
• Shareholder returns are being strengthened: Churchill Downs authorized a $750 million share repurchase and increased its annual dividend by 7.1% to $0.469 per share.

Shares of Churchill Downs, Incorporated (NASDAQ:CHDN - Get Free Report) have been given an average rating of "Moderate Buy" by the twelve research firms that are presently covering the stock, MarketBeat reports. One investment analyst has rated the stock with a hold rating and eleven have issued a buy rating on the company. The average twelve-month price objective among analysts that have issued ratings on the stock in the last year is $126.70.

Several analysts recently commented on the stock. Wolfe Research initiated coverage on shares of Churchill Downs in a research report on Wednesday, September 2nd. They issued an "outperform" rating and a $119.00 price target for the company. Stifel Nicolaus set a $132.00 price objective on shares of Churchill Downs and gave the stock a "buy" rating in a research report on Tuesday. Susquehanna dropped their price objective on shares of Churchill Downs from $124.00 to $115.00 and set a "positive" rating on the stock in a research note on Wednesday, October 21st. Citizens Jmp reduced their target price on shares of Churchill Downs from $137.00 to $131.00 and set a "market outperform" rating for the company in a report on Tuesday, October 13th. Finally, Citigroup reaffirmed a "market outperform" rating on shares of Churchill Downs in a report on Tuesday, October 13th.

Institutional Trading of Churchill Downs

Several hedge funds and other institutional investors have recently made changes to their positions in CHDN. Provenance Wealth Advisors LLC purchased a new stake in Churchill Downs in the 3rd quarter worth approximately $201,000. ProShare Advisors LLC raised its holdings in Churchill Downs by 13.8% in the 3rd quarter. ProShare Advisors LLC now owns 331,954 shares of the company's stock valued at $25,122,000 after acquiring an additional 40,339 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al raised its holdings in Churchill Downs by 1,083.3% in the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 49,700 shares of the company's stock valued at $3,761,000 after acquiring an additional 45,500 shares during the last quarter. Simplicity Wealth LLC purchased a new position in shares of Churchill Downs during the 3rd quarter worth $215,000. Finally, Sage Private Wealth Group LLC purchased a new position in shares of Churchill Downs during the 3rd quarter worth $225,000. Hedge funds and other institutional investors own 82.59% of the company's stock.

Key Headlines Impacting Churchill Downs

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

• Positive Sentiment: Third-quarter results exceeded expectations. Churchill Downs reported adjusted earnings of $1.23 per share, ahead of the approximately $1.13 consensus estimate, while revenue reached $696.0 million versus expectations of roughly $695.2 million. Revenue increased 1.9% year over year, and the earnings performance appears to have strengthened investor confidence in the company’s cash-flow outlook. Churchill Downs third-quarter earnings results
• Positive Sentiment: $750 million share repurchase authorized. The buyback could support earnings per share and provide demand for CHDN shares, particularly as management emphasizes cash generation. Churchill Downs $750 million buyback
• Positive Sentiment: Analysts raised their targets. Barclays increased its target from $132 to $133 and maintained an “overweight” rating, while Mizuho lifted its target from $125 to $126 and retained an “outperform” rating. Both imply substantial upside from the recent trading level. Barclays Churchill Downs rating Mizuho Churchill Downs rating
• Positive Sentiment: Dividend increased. Churchill Downs declared an annual dividend of $0.469 per share, up 7.1% from $0.438, payable January 5, 2027. The increase adds to the shareholder-return appeal, although the dividend yield remains modest. Churchill Downs dividend declaration
• Positive Sentiment: Technical momentum improved. CHDN shares broke above their 200-day moving average, a development that may attract momentum-oriented investors. Churchill Downs moves above 200-day moving average
• Neutral Sentiment: Churchill Downs appointed Michael Tucker as a Class II director. The board change is unlikely to materially affect near-term valuation. Michael Tucker board appointment
• Negative Sentiment: Stifel lowered its price target to $131, modestly tempering the otherwise bullish analyst tone, although it kept CHDN on its Select List. Stifel Churchill Downs price target

Churchill Downs Trading Up 4.0%

NASDAQ CHDN opened at $94.83 on Friday. The firm's fifty day moving average price is $82.91 and its 200 day moving average price is $88.28. Churchill Downs has a 12 month low of $73.08 and a 12 month high of $118.35. The company has a debt-to-equity ratio of 2.95, a current ratio of 0.32 and a quick ratio of 0.36. The company has a market capitalization of $6.50 billion, a price-to-earnings ratio of 14.73, a price-to-earnings-growth ratio of 1.00 and a beta of 0.77.

Churchill Downs (NASDAQ:CHDN - Get Free Report) last posted its earnings results on Wednesday, October 28th. The company reported $1.23 EPS for the quarter, topping analysts' consensus estimates of $1.13 by $0.10. The business had revenue of $696.00 million for the quarter, compared to analysts' expectations of $695.16 million. Churchill Downs had a return on equity of 39.90% and a net margin of 15.15%. The business's revenue was up 1.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.09 earnings per share. On average, sell-side analysts expect that Churchill Downs will post 6.98 earnings per share for the current fiscal year.

Churchill Downs Increases Dividend

The business also recently announced an annual dividend, which will be paid on Tuesday, January 5th. Shareholders of record on Friday, December 4th will be paid a $0.4690 dividend. This is an increase from Churchill Downs's previous annual dividend of $0.4380. The ex-dividend date is Friday, December 4th. This represents a dividend yield of 57.0%. Churchill Downs's dividend payout ratio (DPR) is 6.83%.

About Churchill Downs

Churchill Downs Incorporated NASDAQ: CHDN is a gaming, racing and entertainment company best known for operating Churchill Downs Racetrack in Louisville, Kentucky, the home of the Kentucky Derby. The company traces its history to the opening of Churchill Downs in 1875 and has expanded its operations beyond traditional Thoroughbred racing.

Its business activities include live and historical horse racing, pari-mutuel wagering, casino gaming, video lottery and related entertainment offerings.

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