Churchill Downs (NASDAQ:CHDN) Stock Price Breaks Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Churchill Downs’ third-quarter results beat expectations: Adjusted EPS was $1.23 versus the $1.13 consensus, while revenue rose 1.9% year over year to $696 million.
• The company announced a $750 million share-repurchase program and raised its annual dividend 7.1% to $0.469 per share, supporting shareholder returns.
• Shares climbed above their 200-day moving average, while analysts remained broadly bullish: 10 rate the stock Buy and one Hold, with an average price target of $129.22 versus the recent $91.16 trading price.

Shares of Churchill Downs, Incorporated (NASDAQ:CHDN - Get Free Report) passed above its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $88.33 and traded as high as $94.24. Churchill Downs shares last traded at $91.16, with a volume of 2,162,218 shares traded.

Churchill Downs News Roundup

Here are the key news stories impacting Churchill Downs this week:

• Positive Sentiment: Third-quarter earnings exceeded expectations: Churchill Downs reported adjusted earnings of $1.23 per share, above the $1.13 analyst consensus, while revenue of $696.0 million was slightly ahead of estimates near $695.2 million. Revenue increased 1.9% year over year, and earnings rose from $1.09 per share in the prior-year quarter. Churchill Downs Incorporated Reports 2026 Third Quarter Results
• Positive Sentiment: Large share-repurchase authorization: The board approved a new $750 million buyback program. Repurchases can support earnings per share and signal that management considers the stock attractively valued, although the timing and pace of purchases remain uncertain. Churchill Downs Announces New $750 Million Share Repurchase Program
• Positive Sentiment: Higher dividend: Churchill Downs declared an annual cash dividend of $0.469 per share, a 7.1% increase from the previous $0.438 dividend. The dividend is payable January 5, 2027, to shareholders of record December 4. Churchill Downs Declares Annual Cash Dividend
• Positive Sentiment: Expansion opportunity in Virginia: Local approval for relocating the company’s Henry County historical racing machine venue provides a path for a potentially improved entertainment facility and future regional growth. Churchill Downs Receives Approval for Virginia Venue
• Neutral Sentiment: Board and racing initiatives: Michael Tucker joined the board as an independent Class II director, while Churchill Downs and NYRA expanded their 2027 Thoroughbred Championship Series. These developments strengthen governance and racing visibility but have limited immediate earnings impact. Churchill Downs Appoints Michael Tucker

Analyst Ratings Changes

CHDN has been the subject of several research analyst reports. Mizuho raised their price objective on Churchill Downs from $155.00 to $157.00 and gave the stock an "outperform" rating in a research note on Monday, August 3rd. Citigroup reaffirmed a "market outperform" rating on shares of Churchill Downs in a research note on Tuesday, October 13th. Wells Fargo & Company reaffirmed an "overweight" rating and set a $120.00 target price (up from $117.00) on shares of Churchill Downs in a report on Monday, October 19th. Wolfe Research began coverage on shares of Churchill Downs in a report on Wednesday, September 2nd. They set an "outperform" rating and a $119.00 target price for the company. Finally, Stifel Nicolaus set a $132.00 target price on shares of Churchill Downs and gave the company a "buy" rating in a research report on Tuesday. Ten research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $129.22.

Churchill Downs Trading Up 11.2%

The firm has a market cap of $6.35 billion, a PE ratio of 14.16, a PEG ratio of 0.87 and a beta of 0.77. The company has a debt-to-equity ratio of 3.06, a current ratio of 0.36 and a quick ratio of 0.36. The business has a 50-day moving average price of $82.88 and a two-hundred day moving average price of $88.33.

Churchill Downs (NASDAQ:CHDN - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The company reported $1.23 EPS for the quarter, topping the consensus estimate of $1.13 by $0.10. The business had revenue of $696.00 million for the quarter, compared to analyst estimates of $695.16 million. Churchill Downs had a net margin of 15.15% and a return on equity of 41.89%. The business's revenue for the quarter was up 1.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.09 EPS. Analysts forecast that Churchill Downs, Incorporated will post 6.98 EPS for the current year.

Churchill Downs Increases Dividend

The business also recently disclosed an annual dividend, which will be paid on Tuesday, January 5th. Investors of record on Friday, December 4th will be given a dividend of $0.4690 per share. The ex-dividend date is Friday, December 4th. This represents a dividend yield of 57.0%. This is an increase from Churchill Downs's previous annual dividend of $0.4380. Churchill Downs's payout ratio is presently 7.55%.

Institutional Investors Weigh In On Churchill Downs

A number of large investors have recently bought and sold shares of the stock. Engineers Gate Manager LP grew its stake in shares of Churchill Downs by 118.8% in the second quarter. Engineers Gate Manager LP now owns 54,890 shares of the company's stock valued at $4,920,000 after buying an additional 29,807 shares in the last quarter. BlackRock Inc. purchased a new stake in shares of Churchill Downs during the 2nd quarter valued at about $555,948,000. Bridger Management LLC acquired a new position in Churchill Downs during the 2nd quarter worth approximately $5,126,000. Aurora Investment Counsel acquired a new position in Churchill Downs during the 2nd quarter worth approximately $2,265,000. Finally, First Trust Advisors LP boosted its holdings in Churchill Downs by 178.9% in the 1st quarter. First Trust Advisors LP now owns 76,395 shares of the company's stock worth $6,863,000 after acquiring an additional 49,002 shares during the period. Institutional investors and hedge funds own 82.59% of the company's stock.

Churchill Downs Company Profile

Churchill Downs Incorporated NASDAQ: CHDN is a gaming, racing and entertainment company best known for operating Churchill Downs Racetrack in Louisville, Kentucky, the home of the Kentucky Derby. The company traces its history to the opening of Churchill Downs in 1875 and has expanded its operations beyond traditional Thoroughbred racing.

Its business activities include live and historical horse racing, pari-mutuel wagering, casino gaming, video lottery and related entertainment offerings.

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