Churchill Downs Incorporated (NASDAQ:CHDN) Receives Average Rating of “Buy” from Brokerages

Shares of Churchill Downs Incorporated (NASDAQ:CHDN) have been given an average recommendation of “Buy” by the eight ratings firms that are currently covering the stock, Marketbeat Ratings reports. Eight analysts have rated the stock with a buy recommendation. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $159.38.

Several equities research analysts have commented on CHDN shares. StockNews.com lowered Churchill Downs from a “hold” rating to a “sell” rating in a research report on Tuesday, March 11th. Stifel Nicolaus lowered their price objective on Churchill Downs from $164.00 to $161.00 and set a “buy” rating on the stock in a research report on Friday, February 21st. Wells Fargo & Company lowered their price objective on Churchill Downs from $165.00 to $158.00 and set an “overweight” rating on the stock in a research report on Friday, February 21st. Mizuho lowered their price objective on Churchill Downs from $151.00 to $148.00 and set an “outperform” rating on the stock in a research report on Wednesday, February 19th. Finally, JMP Securities restated a “market outperform” rating and issued a $166.00 price objective on shares of Churchill Downs in a research report on Thursday, January 16th.

Churchill Downs Price Performance

Shares of NASDAQ:CHDN opened at $111.63 on Tuesday. Churchill Downs has a twelve month low of $105.18 and a twelve month high of $150.21. The company’s 50 day moving average is $120.55 and its 200 day moving average is $131.88. The company has a current ratio of 0.57, a quick ratio of 0.55 and a debt-to-equity ratio of 4.47. The company has a market cap of $8.21 billion, a PE ratio of 19.65, a price-to-earnings-growth ratio of 2.95 and a beta of 0.93.

Churchill Downs (NASDAQ:CHDN) last issued its quarterly earnings results on Wednesday, February 19th. The company reported $0.92 earnings per share for the quarter, missing the consensus estimate of $0.98 by ($0.06). Churchill Downs had a return on equity of 43.67% and a net margin of 15.61%. The business had revenue of $624.20 million during the quarter, compared to analyst estimates of $620.21 million. On average, sell-side analysts forecast that Churchill Downs will post 6.92 EPS for the current year.

Churchill Downs declared that its Board of Directors has initiated a share repurchase plan on Wednesday, March 12th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to buy up to 6.4% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Truist Financial Corp lifted its holdings in Churchill Downs by 22.1% in the 4th quarter. Truist Financial Corp now owns 29,637 shares of the company’s stock valued at $3,958,000 after purchasing an additional 5,372 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in Churchill Downs by 1.7% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 605,355 shares of the company’s stock valued at $80,839,000 after purchasing an additional 10,153 shares in the last quarter. Westfield Capital Management Co. LP lifted its holdings in Churchill Downs by 100.0% in the 3rd quarter. Westfield Capital Management Co. LP now owns 763,561 shares of the company’s stock valued at $103,241,000 after purchasing an additional 381,754 shares in the last quarter. Aigen Investment Management LP purchased a new position in Churchill Downs in the 3rd quarter valued at $516,000. Finally, Atria Investments Inc lifted its holdings in Churchill Downs by 3.9% in the 3rd quarter. Atria Investments Inc now owns 6,004 shares of the company’s stock valued at $812,000 after purchasing an additional 224 shares in the last quarter. Hedge funds and other institutional investors own 82.59% of the company’s stock.

About Churchill Downs

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; casino gaming; and Terre Haute Casino Resort.