Churchill Downs (NASDAQ:CHDN) Stock Sees Unusually High Put Option Buying

Key Points

• Put option activity surged: Investors purchased 8,621 put options on Churchill Downs, approximately 611% above the average volume of 1,213 contracts.
• Analysts remain broadly positive: Ten analysts rate the stock a Buy and one rates it Hold, resulting in a “Moderate Buy” consensus and an average price target of $134.89.
• Shares remain below recent averages: Churchill Downs rose 0.8% to $76.35, near its one-year low of $74.92 and below its 50-day and 200-day moving averages. Institutional investors own 82.59% of the company.

Churchill Downs, Incorporated (NASDAQ:CHDN - Get Free Report) saw unusually large options trading on Tuesday. Stock investors acquired 8,621 put options on the stock. This represents an increase of approximately 611% compared to the average volume of 1,213 put options.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. Susquehanna lifted their price objective on Churchill Downs from $121.00 to $124.00 and gave the company a "positive" rating in a research note on Friday, July 31st. Wolfe Research initiated coverage on shares of Churchill Downs in a research note on Wednesday, September 2nd. They set an "outperform" rating and a $119.00 target price on the stock. Truist Financial set a $145.00 target price on shares of Churchill Downs in a report on Friday, June 12th. Citizens Jmp decreased their price target on shares of Churchill Downs from $149.00 to $137.00 and set a "market outperform" rating for the company in a research note on Friday, July 31st. Finally, Weiss Ratings upgraded shares of Churchill Downs from a "sell (d+)" rating to a "hold (c-)" rating in a report on Wednesday, September 2nd. Ten research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $134.89.

Churchill Downs Stock Up 0.8%

NASDAQ CHDN traded up $0.63 during trading on Tuesday, reaching $76.35. 499,878 shares of the company's stock were exchanged, compared to its average volume of 986,749. The stock has a market cap of $5.32 billion, a P/E ratio of 13.12, a price-to-earnings-growth ratio of 0.76 and a beta of 0.67. The company has a debt-to-equity ratio of 3.06, a quick ratio of 0.36 and a current ratio of 0.36. The company has a 50 day moving average price of $85.89 and a two-hundred day moving average price of $87.49. Churchill Downs has a 1 year low of $74.92 and a 1 year high of $118.35.

Churchill Downs (NASDAQ:CHDN - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The company reported $3.45 EPS for the quarter, meeting analysts' consensus estimates of $3.45. Churchill Downs had a return on equity of 42.16% and a net margin of 13.82%.The business had revenue of $980.00 million for the quarter, compared to the consensus estimate of $977.38 million. During the same quarter in the prior year, the business posted $3.10 EPS. The business's revenue for the quarter was up 4.9% on a year-over-year basis. On average, equities research analysts anticipate that Churchill Downs will post 7.14 EPS for the current fiscal year.

Hedge Funds Weigh In On Churchill Downs

Several hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in Churchill Downs during the 2nd quarter worth $555,948,000. Arrowstreet Capital Limited Partnership lifted its stake in shares of Churchill Downs by 0.6% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,384,089 shares of the company's stock worth $157,482,000 after acquiring an additional 7,687 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Churchill Downs by 2.5% in the fourth quarter. Geode Capital Management LLC now owns 1,327,655 shares of the company's stock valued at $151,089,000 after acquiring an additional 32,445 shares in the last quarter. Balyasny Asset Management L.P. boosted its holdings in shares of Churchill Downs by 94.1% in the fourth quarter. Balyasny Asset Management L.P. now owns 1,020,393 shares of the company's stock valued at $116,100,000 after acquiring an additional 494,553 shares in the last quarter. Finally, William Blair Investment Management LLC acquired a new position in shares of Churchill Downs during the second quarter worth about $92,340,000. 82.59% of the stock is currently owned by hedge funds and other institutional investors.

Churchill Downs Company Profile

Churchill Downs Incorporated is a gaming, entertainment and racing company headquartered in Louisville, Kentucky. The company owns and operates Churchill Downs Racetrack, home of the Kentucky Derby, as well as other thoroughbred racing venues, casinos, racinos and historical horse racing facilities.

Its operations include live and historical horse racing, casino gaming, video lottery and other gaming activities, hospitality, dining and entertainment. Through its TwinSpires business, Churchill Downs also provides online horse-racing wagering and related digital betting services in jurisdictions where such activities are permitted.

Founded in 1875, Churchill Downs has expanded from its namesake racetrack into a diversified gaming and entertainment company.

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