Macquarie Forecasts Strong Price Appreciation for Churchill Downs (NASDAQ:CHDN) Stock

Key Points

• Macquarie has raised the price target for Churchill Downs (NASDAQ:CHDN) from $150.00 to $155.00, suggesting a potential upside of 39.13% from the current price.
• Churchill Downs reported $3.10 earnings per share, surpassing analysts' estimates and showing a 4.9% increase in quarterly revenue compared to the previous year.
• Institutional investors hold a significant interest in Churchill Downs, with 82.59% of the company's stock owned by institutional investors and hedge funds.

Churchill Downs (NASDAQ:CHDN - Get Free Report) had its price objective boosted by analysts at Macquarie from $150.00 to $155.00 in a research note issued on Monday,Benzinga reports. The firm currently has an "outperform" rating on the stock. Macquarie's target price points to a potential upside of 45.69% from the company's previous close.

Several other equities analysts also recently weighed in on CHDN. JMP Securities decreased their price target on shares of Churchill Downs from $144.00 to $138.00 and set a "market outperform" rating on the stock in a research note on Tuesday, May 27th. Jefferies Financial Group reduced their target price on shares of Churchill Downs from $160.00 to $127.00 and set a "buy" rating on the stock in a research note on Friday, April 25th. Susquehanna increased their target price on Churchill Downs from $121.00 to $126.00 and gave the stock a "positive" rating in a research note on Wednesday, July 23rd. Truist Financial dropped their target price on Churchill Downs from $150.00 to $145.00 and set a "buy" rating for the company in a research report on Wednesday, July 16th. Finally, Barclays increased their price target on shares of Churchill Downs from $127.00 to $131.00 and gave the stock an "overweight" rating in a research report on Friday, July 25th. One analyst has rated the stock with a hold rating and eleven have assigned a buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $138.18.

Churchill Downs Price Performance

CHDN traded down $0.65 during midday trading on Monday, hitting $106.39. 556,559 shares of the company traded hands, compared to its average volume of 745,286. The company has a current ratio of 0.60, a quick ratio of 0.60 and a debt-to-equity ratio of 4.74. The company has a market capitalization of $7.46 billion, a price-to-earnings ratio of 18.28, a PEG ratio of 2.06 and a beta of 0.95. Churchill Downs has a 52-week low of $85.58 and a 52-week high of $150.21. The business has a 50 day simple moving average of $101.95 and a two-hundred day simple moving average of $107.15.

Churchill Downs (NASDAQ:CHDN - Get Free Report) last posted its quarterly earnings results on Wednesday, July 23rd. The company reported $3.10 earnings per share for the quarter, topping the consensus estimate of $3.03 by $0.07. The firm had revenue of $934.40 million for the quarter, compared to the consensus estimate of $924.36 million. Churchill Downs had a net margin of 15.22% and a return on equity of 41.46%. The company's revenue for the quarter was up 4.9% on a year-over-year basis. During the same period last year, the firm posted $2.89 earnings per share. On average, equities analysts forecast that Churchill Downs will post 6.92 earnings per share for the current fiscal year.

Insider Activity at Churchill Downs

In other news, Director R Alex Rankin acquired 2,000 shares of the company's stock in a transaction on Monday, May 5th. The shares were bought at an average cost of $92.65 per share, with a total value of $185,300.00. Following the transaction, the director owned 99,012 shares in the company, valued at approximately $9,173,461.80. This trade represents a 2.06% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Douglas C. Grissom acquired 10,000 shares of the company's stock in a transaction on Wednesday, May 7th. The stock was purchased at an average cost of $92.77 per share, for a total transaction of $927,700.00. Following the completion of the transaction, the director owned 38,869 shares in the company, valued at approximately $3,605,877.13. The trade was a 34.64% increase in their position. The disclosure for this purchase can be found here. Insiders own 5.34% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Geneos Wealth Management Inc. raised its position in Churchill Downs by 1,364.7% in the 1st 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 last quarter. Elequin Capital LP purchased a new position in Churchill Downs during the 1st quarter worth $29,000. Signaturefd LLC raised its position in Churchill Downs by 161.1% during the 2nd quarter. Signaturefd LLC now owns 329 shares of the company's stock worth $33,000 after buying an additional 203 shares during the last quarter. MassMutual Private Wealth & Trust FSB raised its position in Churchill Downs by 159.1% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 412 shares of the company's stock worth $46,000 after buying an additional 253 shares during the last quarter. Finally, Central Pacific Bank Trust Division raised its position in Churchill Downs by 39.6% during the 1st quarter. Central Pacific Bank Trust Division now owns 455 shares of the company's stock worth $51,000 after buying an additional 129 shares during the last quarter. Institutional investors and hedge funds own 82.59% of the company's stock.

About Churchill Downs

Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort.