Churchill Downs (NASDAQ:CHDN) Shares Gap Up Following Earnings Beat

Churchill Downs Incorporated (NASDAQ:CHDN)’s share price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $123.39, but opened at $130.03. Churchill Downs shares last traded at $132.51, with a volume of 203,153 shares changing hands.

The company reported $1.13 EPS for the quarter, beating analysts’ consensus estimates of $0.78 by $0.35. Churchill Downs had a return on equity of 45.43% and a net margin of 16.95%. The firm had revenue of $590.90 million for the quarter, compared to analysts’ expectations of $565.41 million. During the same quarter in the prior year, the firm posted $0.98 earnings per share. The company’s quarterly revenue was up 5.6% on a year-over-year basis.

Analyst Ratings Changes

A number of analysts have weighed in on CHDN shares. Mizuho started coverage on Churchill Downs in a research note on Tuesday, March 26th. They issued a “buy” rating and a $142.00 target price on the stock. Wells Fargo & Company raised shares of Churchill Downs from an “equal weight” rating to an “overweight” rating and raised their price target for the stock from $137.00 to $141.00 in a research note on Monday, April 15th. Finally, JMP Securities reiterated a “market outperform” rating and set a $150.00 price objective on shares of Churchill Downs in a report on Wednesday, April 10th. One equities research analyst has rated the stock with a sell rating and eight have issued a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $143.13.

Institutional Trading of Churchill Downs

A number of hedge funds have recently added to or reduced their stakes in CHDN. Capital Research Global Investors raised its holdings in shares of Churchill Downs by 0.5% in the 4th quarter. Capital Research Global Investors now owns 6,814,665 shares of the company’s stock valued at $919,513,000 after purchasing an additional 35,337 shares in the last quarter. Vanguard Group Inc. raised its stake in Churchill Downs by 0.6% in the fourth quarter. Vanguard Group Inc. now owns 6,726,402 shares of the company’s stock worth $907,593,000 after buying an additional 37,065 shares in the last quarter. Capital International Investors lifted its holdings in Churchill Downs by 6.1% during the fourth quarter. Capital International Investors now owns 2,382,753 shares of the company’s stock worth $321,508,000 after buying an additional 136,197 shares during the period. Ameriprise Financial Inc. boosted its position in Churchill Downs by 8.3% during the 3rd quarter. Ameriprise Financial Inc. now owns 1,086,275 shares of the company’s stock valued at $126,051,000 after acquiring an additional 83,214 shares in the last quarter. Finally, Boston Partners increased its holdings in shares of Churchill Downs by 98.1% in the 4th quarter. Boston Partners now owns 810,564 shares of the company’s stock valued at $109,347,000 after acquiring an additional 401,319 shares during the period. 82.59% of the stock is owned by hedge funds and other institutional investors.

Churchill Downs Trading Up 4.7 %

The company has a current ratio of 0.53, a quick ratio of 0.53 and a debt-to-equity ratio of 5.34. The stock has a market capitalization of $9.52 billion, a P/E ratio of 23.69, a price-to-earnings-growth ratio of 8.60 and a beta of 1.03. The company has a 50-day moving average price of $119.60 and a 200 day moving average price of $120.58.

Churchill Downs Company Profile

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; and casino gaming.