Churchill Downs (NASDAQ:CHDN) Upgraded by StockNews.com to “Hold” Rating

StockNews.com upgraded shares of Churchill Downs (NASDAQ:CHDN) from a sell rating to a hold rating in a report published on Wednesday morning.

A number of other equities analysts have also recently weighed in on CHDN. JMP Securities reissued a “market outperform” rating and issued a $166.00 price target on shares of Churchill Downs in a report on Thursday, January 16th. Wells Fargo & Company dropped their target price on Churchill Downs from $165.00 to $158.00 and set an “overweight” rating for the company in a research note on Friday, February 21st. Stifel Nicolaus dropped 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, Mizuho dropped 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. One equities research analyst has rated the stock with a hold rating and eight have assigned a buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $159.38.

Churchill Downs Stock Performance

NASDAQ CHDN opened at $112.97 on Wednesday. Churchill Downs has a fifty-two week low of $105.18 and a fifty-two week high of $150.21. The stock has a market cap of $8.31 billion, a price-to-earnings ratio of 19.89, a price-to-earnings-growth ratio of 2.95 and a beta of 0.93. The business has a fifty day moving average of $119.82 and a 200-day moving average of $131.55. The company has a quick ratio of 0.55, a current ratio of 0.57 and a debt-to-equity ratio of 4.47.

Churchill Downs (NASDAQ:CHDN) last released its quarterly earnings results on Wednesday, February 19th. The company reported $0.92 earnings per share for the quarter, missing analysts’ consensus estimates of $0.98 by ($0.06). Churchill Downs had a return on equity of 43.67% and a net margin of 15.61%. The company had revenue of $624.20 million during the quarter, compared to analyst estimates of $620.21 million. As a group, analysts predict that Churchill Downs will post 6.92 earnings per share for the current fiscal year.

Churchill Downs announced that its board has initiated a share buyback plan on Wednesday, March 12th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the company to reacquire up to 6.4% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s management believes its shares are undervalued.

Churchill Downs Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, April 15th. Shareholders of record on Monday, March 31st will be given a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a yield of 0.21%. Churchill Downs’s dividend payout ratio (DPR) is presently 7.04%.

Institutional Investors Weigh In On Churchill Downs

Institutional investors have recently added to or reduced their stakes in the company. Blue Trust Inc. grew its position in Churchill Downs by 127.2% during the fourth quarter. Blue Trust Inc. now owns 184 shares of the company’s stock valued at $25,000 after acquiring an additional 103 shares during the period. Wilmington Savings Fund Society FSB purchased a new stake in shares of Churchill Downs in the third quarter worth about $27,000. Fortitude Family Office LLC boosted its position in shares of Churchill Downs by 2,733.3% in the fourth quarter. Fortitude Family Office LLC now owns 255 shares of the company’s stock worth $34,000 after buying an additional 246 shares during the period. Eagle Bay Advisors LLC purchased a new stake in shares of Churchill Downs in the fourth quarter worth about $55,000. Finally, R Squared Ltd purchased a new stake in shares of Churchill Downs in the fourth quarter worth about $55,000. 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.