Churchill Downs (NASDAQ:CHDN) Hits New 12-Month Low - Here's Why

Key Points

• Churchill Downs shares fell 5.7% to a new 52-week low of $73.59, well below their 50-day and 200-day moving averages of $84.79 and $87.10, respectively.
• Despite the selloff, analysts remain broadly positive: ten analysts rate the stock Buy and one rates it Hold, producing a “Moderate Buy” consensus and an average price target of $134.89.
• The company’s latest quarterly results met EPS expectations and exceeded revenue forecasts, with revenue rising 4.9% year over year; institutional investors own a substantial 82.59% of outstanding shares.

Shares of Churchill Downs, Incorporated (NASDAQ:CHDN - Get Free Report) hit a new 52-week low on Wednesday. The company traded as low as $73.59 and last traded at $73.88, with a volume of 577583 shares changing hands. The stock had previously closed at $78.21.

Analyst Upgrades and Downgrades

CHDN has been the subject of several research reports. Jefferies Financial Group reiterated a "buy" rating on shares of Churchill Downs in a research note on Thursday, July 2nd. Citizens Jmp lowered their price target on Churchill Downs from $149.00 to $137.00 and set a "market outperform" rating for the company in a report on Friday, July 31st. Weiss Ratings raised Churchill Downs from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday, September 2nd. Wells Fargo & Company reduced their price objective on Churchill Downs from $120.00 to $117.00 and set an "overweight" rating on the stock in a research note on Friday, July 31st. Finally, Mizuho upped their target price on Churchill Downs from $155.00 to $157.00 and gave the stock an "outperform" rating in a research report on Monday, August 3rd. Ten equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Churchill Downs currently has a consensus rating of "Moderate Buy" and a consensus target price of $134.89.

Churchill Downs Trading Down 5.7%

The firm has a market capitalization of $5.14 billion, a price-to-earnings ratio of 12.63, a PEG ratio of 0.74 and a beta of 0.77. The business's 50-day moving average price is $84.79 and its 200 day moving average price is $87.10. The company has a debt-to-equity ratio of 3.06, a current ratio of 0.36 and a quick ratio of 0.36.

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

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of CHDN. BlackRock Inc. acquired a new position in Churchill Downs during the 2nd quarter worth $555,948,000. William Blair Investment Management LLC acquired a new stake in shares of Churchill Downs in the 2nd quarter valued at about $92,340,000. Bank of America Corp DE bought a new position in shares of Churchill Downs during the second quarter worth about $69,099,000. Jupiter Topco LLC bought a new position in shares of Churchill Downs during the second quarter worth about $67,787,000. Finally, Balyasny Asset Management L.P. grew its stake in 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 worth $116,100,000 after purchasing an additional 494,553 shares in the last quarter. Institutional investors and hedge funds own 82.59% of the company's stock.

Churchill Downs Company Profile

Churchill Downs Incorporated is a gaming, racing and entertainment company headquartered in Louisville, Kentucky. The company traces its origins to Churchill Downs Racetrack, which hosted the first Kentucky Derby in 1875 and remains its flagship property. Churchill Downs Incorporated operates and supports Thoroughbred racing, pari-mutuel wagering, casino gaming and related hospitality businesses.

The company's operations include live and historical horse-racing venues, traditional casinos and historical racing-machine facilities.

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