Churchill Downs, Incorporated (NASDAQ:CHDN) Given Average Recommendation of “Moderate Buy” by Brokerages

Shares of Churchill Downs, Incorporated (NASDAQ:CHDN) have received a consensus rating of “Moderate Buy” from the ten ratings firms that are currently covering the firm, Marketbeat reports. One research analyst has rated the stock with a sell recommendation and nine have given a buy recommendation to the company. The average 12-month price objective among brokers that have covered the stock in the last year is $138.50.

CHDN has been the topic of a number of recent research reports. Wells Fargo & Company lowered their price target on shares of Churchill Downs from $132.00 to $120.00 and set an “overweight” rating on the stock in a research report on Tuesday, July 14th. Jefferies Financial Group restated a “buy” rating on shares of Churchill Downs in a research report on Thursday, July 2nd. Weiss Ratings cut shares of Churchill Downs from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 4th. Truist Financial set a $145.00 target price on shares of Churchill Downs in a report on Friday, June 12th. Finally, Citizens Jmp lifted their price target on shares of Churchill Downs from $146.00 to $149.00 and gave the company a “market outperform” rating in a research report on Friday, April 24th.

Churchill Downs Stock Performance

CHDN opened at $82.69 on Friday. The company has a debt-to-equity ratio of 4.44, a current ratio of 0.54 and a quick ratio of 0.54. The business has a fifty day simple moving average of $86.83 and a 200 day simple moving average of $90.46. Churchill Downs has a 1 year low of $79.40 and a 1 year high of $118.35. The company has a market capitalization of $5.76 billion, a PE ratio of 14.18, a price-to-earnings-growth ratio of 0.57 and a beta of 0.67.

Churchill Downs (NASDAQ:CHDN) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $3.45 earnings per share for the quarter, hitting the consensus estimate of $3.45. Churchill Downs had a return on equity of 45.12% and a net margin of 13.82%.The firm had revenue of $980.00 million for the quarter, compared to analysts’ expectations of $977.38 million. During the same quarter last year, the business earned $3.10 EPS. The company’s quarterly revenue was up 4.9% compared to the same quarter last year. Research analysts expect that Churchill Downs will post 7.14 EPS for the current year.

Churchill Downs News Roundup

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

• Positive Sentiment: Churchill Downs agreed to acquire NYRA’s 49% stake in United Tote, giving the company full ownership of the pari-mutuel wagering technology and services provider. The deal could strengthen CDI’s racing-technology platform and provide additional long-term growth opportunities. United Tote acquisition announcement
• Positive Sentiment: Management outlined approximately $285 million of Victory Run development ahead of the 2028 Kentucky Derby, alongside an expanded Homestretch Club and upgraded infield seating. These projects are intended to increase premium hospitality capacity and future racetrack revenue. Victory Run buildout and casino sales
• Neutral Sentiment: CDI is reviewing strategic alternatives for nine regional casino properties, including potential sales. Divestitures could generate cash and sharpen the company’s portfolio, but the eventual proceeds, timing and impact on recurring earnings remain uncertain. Strategic gaming-asset review
• Negative Sentiment: Second-quarter adjusted earnings were $3.45 per share, matching some reported estimates but below the Zacks consensus of $3.51. Revenue rose 4.9% year over year to $980 million and exceeded the roughly $977 million consensus, but the modest revenue beat did not offset concerns that earnings performance was insufficient relative to investor expectations. Q2 earnings estimate comparison
• Negative Sentiment: The sharp selloff and unusually heavy trading indicate that investors reacted negatively to the earnings call, likely reflecting concerns about margins, forward expectations or the sustainability of recent Derby-driven strength. The stock remains below its 50-day and 200-day moving averages, adding technical pressure.

Hedge Funds Weigh In On Churchill Downs

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Geneos Wealth Management Inc. increased its position in shares of Churchill Downs by 1,364.7% in the first quarter. Geneos Wealth Management Inc. now owns 249 shares of the company’s stock worth $28,000 after purchasing an additional 232 shares during the period. Measured Wealth Private Client Group LLC acquired a new position in Churchill Downs in the third quarter valued at about $25,000. Parkside Financial Bank & Trust lifted its position in Churchill Downs by 293.8% during the fourth quarter. Parkside Financial Bank & Trust now owns 256 shares of the company’s stock worth $29,000 after purchasing an additional 191 shares during the period. Root Financial Partners LLC lifted its position in Churchill Downs by 1,173.1% during the first quarter. Root Financial Partners LLC now owns 331 shares of the company’s stock worth $30,000 after purchasing an additional 305 shares during the period. Finally, Los Angeles Capital Management LLC acquired a new stake in Churchill Downs during the fourth quarter worth about $38,000. 82.59% of the stock is owned by institutional investors and hedge funds.

About Churchill Downs

Churchill Downs Incorporated is a leading American entertainment and gaming company best known for operating the Churchill Downs racetrack in Louisville, Kentucky, home of the annual Kentucky Derby. Beyond its signature thoroughbred racing venue, the company manages a diversified portfolio of live racing facilities, casinos, and off-track betting operations. Its services encompass pari-mutuel wagering, historical horse racing machines, and online betting through its TwinSpires platform, reaching horse racing and sports betting enthusiasts nationwide.

In its live racing segment, Churchill Downs oversees a network of racetracks and racing festivals, offering year-round events in multiple states.