Churchill Downs (NASDAQ:CHDN) Sets New 1-Year Low – Should You Sell?

Churchill Downs Incorporated (NASDAQ:CHDN)’s share price hit a new 52-week low on Friday . The company traded as low as $102.14 and last traded at $103.31, with a volume of 143780 shares traded. The stock had previously closed at $109.02.

Analyst Ratings Changes

Several equities research analysts recently commented on the company. Mizuho decreased their target price on Churchill Downs from $151.00 to $148.00 and set an “outperform” rating for the company in a research note on Wednesday, February 19th. JMP Securities restated a “market outperform” rating and issued a $166.00 price target on shares of Churchill Downs in a report on Thursday, January 16th. StockNews.com upgraded shares of Churchill Downs from a “sell” rating to a “hold” rating in a report on Wednesday, March 19th. Stifel Nicolaus reduced their target price on Churchill Downs from $164.00 to $161.00 and set a “buy” rating for the company in a research note on Friday, February 21st. Finally, Wells Fargo & Company dropped their price target on Churchill Downs from $165.00 to $158.00 and set an “overweight” rating on the stock in a research note on Friday, February 21st. One analyst has rated the stock with a hold rating and eight have issued a buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $159.38.

Churchill Downs Stock Down 5.8 %

The stock has a fifty day moving average price of $116.11 and a two-hundred day moving average price of $129.19. The company has a market cap of $7.54 billion, a P/E ratio of 18.07, a price-to-earnings-growth ratio of 2.95 and a beta of 0.86. The company has a debt-to-equity ratio of 4.47, a current ratio of 0.57 and a quick ratio of 0.55.

Churchill Downs (NASDAQ:CHDN) last posted its quarterly earnings data on Wednesday, February 19th. The company reported $0.92 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.98 by ($0.06). The firm had revenue of $624.20 million for the quarter, compared to analysts’ expectations of $620.21 million. Churchill Downs had a return on equity of 43.67% and a net margin of 15.61%. On average, research analysts expect that Churchill Downs Incorporated will post 6.92 EPS for the current year.

Churchill Downs Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 15th. Shareholders of record on Monday, March 31st will be paid a $0.06 dividend. This represents a $0.24 annualized dividend and a yield of 0.23%. Churchill Downs’s dividend payout ratio (DPR) is 7.04%.

Churchill Downs declared that its Board of Directors has authorized a share repurchase program on Wednesday, March 12th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the company to reacquire up to 6.4% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s leadership believes its shares are undervalued.

Institutional Trading of Churchill Downs

A number of institutional investors and hedge funds have recently modified their holdings of the business. Norges Bank purchased a new position in Churchill Downs in the fourth quarter worth $74,967,000. Boston Partners grew its position in Churchill Downs by 25.6% during the fourth quarter. Boston Partners now owns 1,794,630 shares of the company’s stock valued at $239,619,000 after buying an additional 366,283 shares during the period. FMR LLC increased its holdings in Churchill Downs by 6.4% during the fourth quarter. FMR LLC now owns 3,592,087 shares of the company’s stock worth $479,687,000 after buying an additional 214,694 shares during the last quarter. Point72 Asset Management L.P. raised its position in Churchill Downs by 97.9% in the fourth quarter. Point72 Asset Management L.P. now owns 431,165 shares of the company’s stock worth $57,578,000 after acquiring an additional 213,311 shares during the period. Finally, Clearbridge Investments LLC bought a new position in shares of Churchill Downs during the 4th quarter valued at approximately $28,369,000. 82.59% of the stock is owned by hedge funds and other institutional investors.

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.