Churchill Downs, Incorporated $CHDN Shares Sold by Sapient Capital LLC

Key Points

• Sapient Capital reduced its Churchill Downs stake by 22.3% in the first quarter, selling 17,254 shares and retaining 60,121 shares worth approximately $5.4 million. Institutional investors collectively own 82.59% of the company.
• Churchill Downs reported quarterly revenue of $980 million, up 4.9% year over year and slightly above estimates, while EPS of $3.45 matched consensus and increased from $3.10 a year earlier.
• Analysts remain broadly optimistic: nine analysts rate the stock Buy versus one Sell, producing a “Moderate Buy” consensus and an average price target of $136.62, well above its recent $84.30 share price.

Sapient Capital LLC trimmed its position in shares of Churchill Downs, Incorporated (NASDAQ:CHDN - Free Report) by 22.3% during the first quarter, according to its most recent Form 13F filing with the SEC. The firm owned 60,121 shares of the company's stock after selling 17,254 shares during the period. Sapient Capital LLC owned about 0.09% of Churchill Downs worth $5,398,000 at the end of the most recent reporting period.

Other hedge funds have also recently added to or reduced their stakes in the company. NewEdge Advisors LLC acquired a new position in Churchill Downs during the 1st quarter worth approximately $50,000. Essential Partners LLC raised its holdings in shares of Churchill Downs by 64.7% in the 1st quarter. Essential Partners LLC now owns 578 shares of the company's stock valued at $52,000 after purchasing an additional 227 shares in the last quarter. Vestor Capital LLC acquired a new stake in shares of Churchill Downs in the 1st quarter valued at $35,768,000. Edgestream Partners L.P. purchased a new stake in shares of Churchill Downs during the 1st quarter worth $2,598,000. Finally, Bull Harbor Capital LLC purchased a new stake in shares of Churchill Downs during the 1st quarter worth $234,000. Institutional investors and hedge funds own 82.59% of the company's stock.

Churchill Downs Stock Performance

Shares of Churchill Downs stock opened at $84.30 on Monday. The company has a fifty day simple moving average of $86.81 and a 200-day simple moving average of $90.30. Churchill Downs, Incorporated has a 12-month low of $79.40 and a 12-month high of $118.35. The company has a current ratio of 0.36, a quick ratio of 0.36 and a debt-to-equity ratio of 3.06. The stock has a market cap of $5.88 billion, a price-to-earnings ratio of 14.46, a PEG ratio of 0.55 and a beta of 0.67.

Churchill Downs (NASDAQ:CHDN - Get Free Report) last posted its earnings results on Wednesday, July 29th. The company reported $3.45 EPS for the quarter, meeting analysts' consensus estimates of $3.45. Churchill Downs had a net margin of 13.82% and a return on equity of 42.16%. The firm had revenue of $980.00 million for the quarter, compared to the consensus estimate of $977.38 million. During the same period last year, the firm posted $3.10 EPS. The company's revenue was up 4.9% on a year-over-year basis. On average, equities analysts forecast that Churchill Downs, Incorporated will post 7.1 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several research firms recently commented on CHDN. Jefferies Financial Group reissued a "buy" rating on shares of Churchill Downs in a report on Thursday, July 2nd. Wells Fargo & Company decreased their price target on Churchill Downs from $120.00 to $117.00 and set an "overweight" rating for the company in a report on Friday. Mizuho upped their price objective on Churchill Downs from $146.00 to $155.00 and gave the stock an "outperform" rating in a research report on Friday, April 24th. Citigroup reiterated an "outperform" rating on shares of Churchill Downs in a report on Friday. Finally, Susquehanna increased their price objective on Churchill Downs from $121.00 to $124.00 and gave the company a "positive" rating in a report on Friday. Nine investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $136.62.

Key Stories Impacting Churchill Downs

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

• Positive Sentiment: Analysts remain bullish despite target adjustments. Susquehanna raised its price target from $121 to $124 and kept a positive rating. Wells Fargo and Citizens JMP lowered their targets to $117 and $137, respectively, but maintained “overweight” and “market outperform” ratings. All three targets imply substantial upside from recent trading levels. Benzinga analyst rating coverage
• Positive Sentiment: Quarterly revenue increased year over year. Churchill Downs reported second-quarter revenue of approximately $980 million, up 4.9% from the prior year and slightly ahead of the roughly $977 million consensus estimate. Adjusted earnings of $3.45 per share matched the company’s reported consensus estimate and increased from $3.10 a year earlier. Churchill Downs Q2 sales report
• Positive Sentiment: Churchill Downs is expanding its wagering and racing operations. The company agreed to buy back NYRA’s 49% stake in United Tote, restoring full ownership of the pari-mutuel technology and services business. It also outlined a $285 million Victory Run development ahead of the 2028 Kentucky Derby, which could support long-term growth and enhance the Churchill Downs property. United Tote stake acquisition Victory Run development and gaming asset sales
• Neutral Sentiment: Strategic asset sales could reshape the portfolio. Management is pursuing potential sales of nine regional casinos as part of a broader review of its gaming assets. Proceeds could improve capital flexibility, although the outcome and valuation of any transactions remain uncertain. Strategic gaming asset review
• Negative Sentiment: The earnings reaction was pressured by elevated expectations. One data provider cited EPS of $3.45 as below its $3.51 consensus estimate, while conference-call commentary may have raised concerns about margins or forward momentum after strong Derby-related performance. The planned Victory Run investment and Churchill Downs’ high leverage also keep capital-spending and balance-sheet risks in focus. Churchill Downs Q2 earnings estimate comparison

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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