Janus Henderson Group PLC Sells 88,273 Shares of Churchill Downs, Incorporated $CHDN

Key Points

• Janus Henderson reduced its Churchill Downs stake by 14.2%, selling 88,273 shares during the first quarter and retaining 535,309 shares worth approximately $48.1 million. Institutional investors collectively own 82.59% of the company.
• Churchill Downs reported second-quarter revenue of $980 million, up 4.9% year over year, while adjusted EPS of $3.45 matched consensus and increased from $3.10 a year earlier.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and a $136.62 price target, though the company faces risks from high leverage, substantial planned spending on its Victory Run development, and potential regional casino asset sales.

Janus Henderson Group PLC reduced its stake in shares of Churchill Downs, Incorporated (NASDAQ:CHDN - Free Report) by 14.2% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 535,309 shares of the company's stock after selling 88,273 shares during the quarter. Janus Henderson Group PLC owned approximately 0.77% of Churchill Downs worth $48,086,000 as of its most recent SEC filing.

Other institutional investors also recently added to or reduced their stakes in the company. Geneos Wealth Management Inc. raised its holdings in Churchill Downs by 1,364.7% in the first quarter. Geneos Wealth Management Inc. now owns 249 shares of the company's stock worth $28,000 after purchasing an additional 232 shares in the last quarter. Measured Wealth Private Client Group LLC bought a new stake in shares of Churchill Downs in the 3rd quarter valued at about $25,000. Parkside Financial Bank & Trust boosted its holdings in shares of Churchill Downs by 293.8% in the 4th quarter. Parkside Financial Bank & Trust now owns 256 shares of the company's stock valued at $29,000 after buying an additional 191 shares in the last quarter. Root Financial Partners LLC grew its position in shares of Churchill Downs by 1,173.1% in the 1st quarter. Root Financial Partners LLC now owns 331 shares of the company's stock worth $30,000 after buying an additional 305 shares during the last quarter. Finally, Los Angeles Capital Management LLC purchased a new position in shares of Churchill Downs in the 4th quarter worth approximately $38,000. Institutional investors own 82.59% of the company's stock.

Trending Headlines about 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

Churchill Downs Stock Performance

CHDN opened at $84.30 on Friday. Churchill Downs, Incorporated has a 52-week low of $79.40 and a 52-week high of $118.35. The company has a quick ratio of 0.54, a current ratio of 0.36 and a debt-to-equity ratio of 3.06. The company has a market cap of $5.88 billion, a P/E ratio of 14.46, a price-to-earnings-growth ratio of 0.54 and a beta of 0.67. The firm's 50-day moving average price is $86.81 and its 200-day moving average price is $90.41.

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

Wall Street Analysts Forecast Growth

A number of research firms recently commented on CHDN. Susquehanna increased their target price on shares of Churchill Downs from $121.00 to $124.00 and gave the company a "positive" rating in a research report on Friday. Truist Financial set a $145.00 price target on shares of Churchill Downs in a report on Friday, June 12th. Wells Fargo & Company reduced their price target on Churchill Downs from $120.00 to $117.00 and set an "overweight" rating on the stock in a research report on Friday. Jefferies Financial Group reiterated a "buy" rating on shares of Churchill Downs in a report on Thursday, July 2nd. Finally, Mizuho raised 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. Nine 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, Churchill Downs presently has an average rating of "Moderate Buy" and a consensus price target of $136.62.

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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