Churchill Downs (NASDAQ:CHDN) Sets New 12-Month Low - Should You Sell?

Key Points

• Churchill Downs shares fell to a new 52-week low of $74.92, trading below both their 50-day ($85.89) and 200-day ($87.49) moving averages.
• Despite the decline, analysts remain broadly positive: ten rate the stock a Buy and one a Hold, producing a “Moderate Buy” consensus and an average price target of $134.89.
• The company reported quarterly EPS of $3.45, matching estimates, while revenue rose 4.9% year over year to $980 million; institutional investors own 82.59% of outstanding shares.

Churchill Downs, Incorporated (NASDAQ:CHDN - Get Free Report) shares hit a new 52-week low during mid-day trading on Tuesday. The stock traded as low as $74.92 and last traded at $75.72, with a volume of 1602205 shares traded. The stock had previously closed at $79.77.

Analyst Ratings Changes

Several research firms recently commented on CHDN. Citigroup reissued an "outperform" rating on shares of Churchill Downs in a research note on Friday, July 31st. Truist Financial set a $145.00 price target on shares of Churchill Downs in a research report on Friday, June 12th. Citizens Jmp dropped their price target on Churchill Downs from $149.00 to $137.00 and set a "market outperform" rating on the stock in a report on Friday, July 31st. Jefferies Financial Group reiterated a "buy" rating on shares of Churchill Downs in a research report on Thursday, July 2nd. Finally, Weiss Ratings raised Churchill Downs from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday, September 2nd. Ten investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $134.89.

Churchill Downs Stock Performance

The firm's fifty day simple moving average is $85.89 and its 200 day simple moving average is $87.49. The company has a market capitalization of $5.28 billion, a price-to-earnings ratio of 12.99, a PEG ratio of 0.76 and a beta of 0.67. 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 issued its quarterly earnings results on Wednesday, July 29th. The company reported $3.45 EPS for the quarter, meeting the consensus estimate of $3.45. Churchill Downs had a net margin of 13.82% and a return on equity of 42.16%. The business had revenue of $980.00 million during the quarter, compared to the consensus estimate of $977.38 million. During the same quarter in the prior year, the firm earned $3.10 EPS. The firm's quarterly revenue was up 4.9% on a year-over-year basis. On average, sell-side analysts forecast that Churchill Downs, Incorporated will post 7.14 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Sanctuary Advisors LLC lifted its position in Churchill Downs by 0.5% in the first quarter. Sanctuary Advisors LLC now owns 27,600 shares of the company's stock worth $2,479,000 after buying an additional 125 shares during the last quarter. Concurrent Investment Advisors LLC boosted its stake in Churchill Downs by 6.4% during the second quarter. Concurrent Investment Advisors LLC now owns 3,610 shares of the company's stock worth $324,000 after buying an additional 217 shares during the period. Essential Partners LLC increased its position in Churchill Downs by 64.7% during the first quarter. Essential Partners LLC now owns 578 shares of the company's stock valued at $52,000 after acquiring an additional 227 shares during the last quarter. Oregon Public Employees Retirement Fund increased its position in Churchill Downs by 2.3% during the first quarter. Oregon Public Employees Retirement Fund now owns 13,578 shares of the company's stock valued at $1,220,000 after acquiring an additional 300 shares during the last quarter. Finally, State of Michigan Retirement System raised its stake in shares of Churchill Downs by 1.9% in the first quarter. State of Michigan Retirement System now owns 15,980 shares of the company's stock valued at $1,435,000 after acquiring an additional 300 shares during the period. Hedge funds and other institutional investors own 82.59% of the company's stock.

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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