Churchill Downs (NASDAQ:CHDN) Shares Gap Up on Strong Earnings

Shares of Churchill Downs Incorporated (NASDAQ:CHDN - Get Free Report) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $123.39, but opened at $130.03. Churchill Downs shares last traded at $132.51, with a volume of 203,153 shares changing hands.

The company reported $1.13 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.78 by $0.35. The company had revenue of $590.90 million during the quarter, compared to analysts' expectations of $565.41 million. Churchill Downs had a net margin of 16.95% and a return on equity of 45.43%. Churchill Downs's quarterly revenue was up 5.6% compared to the same quarter last year. During the same quarter last year, the company posted $0.98 EPS.

Analyst Upgrades and Downgrades

CHDN has been the subject of a number of research reports. Mizuho started coverage on shares of Churchill Downs in a research note on Tuesday, March 26th. They set a "buy" rating and a $142.00 target price for the company. JMP Securities reissued a "market outperform" rating and issued a $150.00 target price on shares of Churchill Downs in a report on Wednesday, April 10th. Finally, Wells Fargo & Company raised shares of Churchill Downs from an "equal weight" rating to an "overweight" rating and raised their target price for the company from $137.00 to $141.00 in a report on Monday, April 15th. One equities research analyst has rated the stock with a sell rating and eight have given a buy rating to the stock. Based on data from MarketBeat.com, Churchill Downs has an average rating of "Moderate Buy" and an average price target of $143.13.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of CHDN. Capital Research Global Investors grew its holdings in Churchill Downs by 0.5% during the 4th quarter. Capital Research Global Investors now owns 6,814,665 shares of the company's stock worth $919,513,000 after acquiring an additional 35,337 shares during the period. Vanguard Group Inc. grew its stake in shares of Churchill Downs by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 6,726,402 shares of the company's stock valued at $907,593,000 after buying an additional 37,065 shares during the period. Capital International Investors grew its stake in shares of Churchill Downs by 6.1% in the 4th quarter. Capital International Investors now owns 2,382,753 shares of the company's stock valued at $321,508,000 after buying an additional 136,197 shares during the period. Ameriprise Financial Inc. grew its stake in shares of Churchill Downs by 8.3% in the 3rd quarter. Ameriprise Financial Inc. now owns 1,086,275 shares of the company's stock valued at $126,051,000 after buying an additional 83,214 shares during the period. Finally, Boston Partners grew its stake in shares of Churchill Downs by 98.1% in the 4th quarter. Boston Partners now owns 810,564 shares of the company's stock valued at $109,347,000 after buying an additional 401,319 shares during the period. 82.59% of the stock is owned by institutional investors.

Churchill Downs Stock Performance

The company has a debt-to-equity ratio of 5.34, a quick ratio of 0.53 and a current ratio of 0.53. The company has a 50 day moving average price of $119.60 and a 200 day moving average price of $120.58. The company has a market capitalization of $9.52 billion, a price-to-earnings ratio of 23.69, a P/E/G ratio of 8.60 and a beta of 1.03.

Churchill Downs Company Profile

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; and casino gaming.