Churchill Downs (NASDAQ:CHDN) Shares Gap Up on Strong Earnings

Shares of Churchill Downs Incorporated (NASDAQ:CHDN) gapped up before the market opened 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 trading hands.

The company reported $1.13 EPS for the quarter, topping analysts’ consensus estimates of $0.78 by $0.35. Churchill Downs had a net margin of 16.95% and a return on equity of 45.43%. The company had revenue of $590.90 million for the quarter, compared to the consensus estimate of $565.41 million. During the same period in the previous year, the firm earned $0.98 EPS. Churchill Downs’s revenue was up 5.6% on a year-over-year basis.

Analyst Upgrades and Downgrades

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

Hedge Funds Weigh In On Churchill Downs

Hedge funds have recently made changes to their positions in the business. Norges Bank purchased a new position in shares of Churchill Downs in the fourth quarter worth approximately $94,137,000. Boston Partners purchased a new position in shares of Churchill Downs in the third quarter worth approximately $47,479,000. Balyasny Asset Management L.P. increased its position in shares of Churchill Downs by 113.8% in the fourth quarter. Balyasny Asset Management L.P. now owns 463,555 shares of the company’s stock worth $62,547,000 after acquiring an additional 246,769 shares in the last quarter. Jennison Associates LLC increased its position in shares of Churchill Downs by 28.9% in the fourth quarter. Jennison Associates LLC now owns 803,074 shares of the company’s stock worth $108,359,000 after acquiring an additional 179,814 shares in the last quarter. Finally, Barlow Wealth Partners Inc. purchased a new position in shares of Churchill Downs in the fourth quarter worth approximately $20,669,000. Institutional investors and hedge funds own 82.59% of the company’s stock.

Churchill Downs Stock Performance

The firm’s 50-day moving average price is $119.55 and its two-hundred day moving average price is $120.56. The firm has a market capitalization of $9.76 billion, a PE ratio of 24.25, a P/E/G ratio of 8.60 and a beta of 1.03. The company has a quick ratio of 0.53, a current ratio of 0.53 and a debt-to-equity ratio of 5.34.

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.