Sei Investments Co. Grows Position in Churchill Downs, Incorporated $CHDN

Key Points

• Sei Investments nearly doubled its Churchill Downs position in the first quarter, raising holdings by 97.5% to 105,917 shares valued at approximately $9.5 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 and slightly above estimates, while adjusted EPS rose to $3.45 from $3.10 a year earlier.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $136.62. The company is also expanding through full ownership of United Tote and a planned $285 million Victory Run development, while evaluating sales of nine regional casinos.

Sei Investments Co. raised its holdings in Churchill Downs, Incorporated (NASDAQ:CHDN - Free Report) by 97.5% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 105,917 shares of the company's stock after acquiring an additional 52,286 shares during the period. Sei Investments Co. owned approximately 0.15% of Churchill Downs worth $9,516,000 at the end of the most recent quarter.

Other institutional investors have also modified their holdings of the company. AQR Capital Management LLC increased its holdings in shares of Churchill Downs by 29.8% during the 1st quarter. AQR Capital Management LLC now owns 3,415 shares of the company's stock worth $373,000 after buying an additional 784 shares during the last quarter. Goldman Sachs Group Inc. lifted its position in shares of Churchill Downs by 33.5% during the first quarter. Goldman Sachs Group Inc. now owns 483,252 shares of the company's stock worth $53,675,000 after purchasing an additional 121,204 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Churchill Downs by 7.2% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 225,800 shares of the company's stock valued at $25,080,000 after buying an additional 15,161 shares during the period. Geneos Wealth Management Inc. boosted 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 valued at $28,000 after purchasing an additional 232 shares during the period. Finally, Sivia Capital Partners LLC purchased a new position in shares of Churchill Downs in the 2nd quarter valued at about $229,000. Hedge funds and other institutional investors own 82.59% of the company's stock.

Churchill Downs News Roundup

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 Trading Up 1.9%

Shares of CHDN stock opened at $84.30 on Friday. The company has a debt-to-equity ratio of 3.06, a current ratio of 0.36 and a quick ratio of 0.54. The firm has a market cap of $5.88 billion, a P/E ratio of 14.46, a PEG ratio of 0.54 and a beta of 0.67. Churchill Downs, Incorporated has a 1-year low of $79.40 and a 1-year high of $118.35. The firm's 50-day simple moving average is $86.81 and its 200-day simple moving average is $90.41.

Churchill Downs (NASDAQ:CHDN - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $3.45 earnings per share 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 company had revenue of $980.00 million for the quarter, compared to analyst estimates of $977.38 million. During the same quarter last year, the business earned $3.10 EPS. Churchill Downs's revenue for the quarter was up 4.9% on a year-over-year basis. As a group, equities analysts forecast that Churchill Downs, Incorporated will post 7.1 EPS for the current year.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. Mizuho lifted their price objective on shares of Churchill Downs from $146.00 to $155.00 and gave the stock an "outperform" rating in a research report on Friday, April 24th. Weiss Ratings downgraded Churchill Downs from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, May 4th. Susquehanna raised their price target on Churchill Downs from $121.00 to $124.00 and gave the stock a "positive" rating in a report on Friday. Citizens Jmp lowered their price objective on shares of Churchill Downs from $149.00 to $137.00 and set a "market outperform" rating on the stock in a research report on Friday. Finally, Citigroup reiterated an "outperform" rating on shares of Churchill Downs in a research report on Friday. Nine research 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 company presently has an average rating of "Moderate Buy" and an average price target of $136.62.

Churchill Downs Profile

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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