Churchill Downs, Incorporated $CHDN Shares Purchased by Penn Capital Management Company LLC

Key Points

• Penn Capital increased its Churchill Downs stake by 13.2% in the third quarter, adding 22,597 shares to hold 194,268 shares worth about $14.7 million. Institutional investors collectively own 82.59% of the company.
• Churchill Downs beat quarterly earnings expectations, reporting $1.23 per share versus the $1.13 consensus, while revenue rose 1.9% year over year to $696 million.
• Analysts give the stock a “Moderate Buy” consensus rating, with an average price target of $126.70. The company also raised its annual dividend to $0.469 per share.

Penn Capital Management Company LLC lifted its stake in Churchill Downs, Incorporated (NASDAQ:CHDN - Free Report) by 13.2% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 194,268 shares of the company's stock after purchasing an additional 22,597 shares during the period. Penn Capital Management Company LLC owned about 0.28% of Churchill Downs worth $14,720,000 at the end of the most recent quarter.

Other hedge funds have also recently made changes to their positions in the company. BlackRock Inc. bought a new position in Churchill Downs in the 2nd quarter worth about $555,948,000. William Blair Investment Management LLC bought a new stake in shares of Churchill Downs during the second quarter valued at approximately $92,340,000. Bank of America Corp DE bought a new stake in shares of Churchill Downs during the second quarter valued at approximately $69,099,000. Jupiter Topco LLC bought a new stake in shares of Churchill Downs during the second quarter valued at approximately $67,787,000. Finally, Apollo Management Holdings L.P. boosted its holdings in shares of Churchill Downs by 4.7% in the second quarter. Apollo Management Holdings L.P. now owns 499,482 shares of the company's stock valued at $44,774,000 after purchasing an additional 22,500 shares during the period. 82.59% of the stock is currently owned by institutional investors.

Churchill Downs Trading Up 0.8%

NASDAQ:CHDN opened at $98.77 on Tuesday. Churchill Downs, Incorporated has a 52 week low of $73.08 and a 52 week high of $118.35. The firm has a 50 day moving average of $83.96 and a 200 day moving average of $88.05. The company has a quick ratio of 0.32, a current ratio of 0.32 and a debt-to-equity ratio of 2.95. The stock has a market capitalization of $6.77 billion, a price-to-earnings ratio of 15.34, a PEG ratio of 1.01 and a beta of 0.77.

Churchill Downs (NASDAQ:CHDN - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The company reported $1.23 earnings per share for the quarter, topping the consensus estimate of $1.13 by $0.10. Churchill Downs had a return on equity of 39.90% and a net margin of 15.15%. The business had revenue of $696.00 million during the quarter, compared to the consensus estimate of $695.16 million. During the same quarter last year, the company earned $1.09 earnings per share. The company's quarterly revenue was up 1.9% on a year-over-year basis. As a group, sell-side analysts anticipate that Churchill Downs, Incorporated will post 6.88 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. Investors of record on Friday, December 4th will be paid a $0.4690 dividend. This is a boost from Churchill Downs's previous annual dividend of $0.4380. The ex-dividend date is Friday, December 4th. This represents a yield of 57.0%. Churchill Downs's dividend payout ratio (DPR) is 6.83%.

Wall Street Analysts Forecast Growth

CHDN has been the topic of several research reports. Mizuho raised their price objective on Churchill Downs from $125.00 to $126.00 and gave the stock an "outperform" rating in a report on Friday, October 30th. Royal Bank Of Canada set a $131.00 target price on Churchill Downs in a report on Tuesday, October 13th. Barclays increased their price target on Churchill Downs from $132.00 to $133.00 and gave the stock an "overweight" rating in a research report on Friday, October 30th. Wells Fargo & Company reissued an "overweight" rating and set a $120.00 price target (up from $117.00) on shares of Churchill Downs in a research report on Monday, October 19th. Finally, Citizens Jmp cut their price target on Churchill Downs from $137.00 to $131.00 and set a "market outperform" rating on the stock in a research note on Tuesday, October 13th. Eleven research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $126.70.

Churchill Downs Profile

Churchill Downs Incorporated is a gaming and entertainment company best known for operating Churchill Downs Racetrack in Louisville, Kentucky, home of the Kentucky Derby. The racetrack opened in 1875, the same year the inaugural Kentucky Derby was held.

The company operates horse-racing venues and related wagering businesses, as well as casinos and other gaming properties in several U.S. states. Its offerings include live and simulcast racing, casino gaming, and historical horse-racing machines.

Churchill Downs also operates TwinSpires, its online horse-racing wagering platform.

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