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

Churchill Downs Incorporated (NASDAQ:CHDN) shares reached a new 52-week low on Thursday . The company traded as low as $105.18 and last traded at $106.50, with a volume of 658805 shares traded. The stock had previously closed at $108.60.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the stock. StockNews.com lowered shares of Churchill Downs from a “hold” rating to a “sell” rating in a report on Tuesday. Wells Fargo & Company dropped their price target on shares of Churchill Downs from $165.00 to $158.00 and set an “overweight” rating on the stock in a research report on Friday, February 21st. Mizuho dropped their price target on shares of Churchill Downs from $151.00 to $148.00 and set an “outperform” rating on the stock in a research report 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 research report on Thursday, January 16th. Finally, Stifel Nicolaus dropped their price target on shares of Churchill Downs from $164.00 to $161.00 and set a “buy” rating on the stock in a research report on Friday, February 21st. One investment analyst has rated the stock with a sell rating and eight have given a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $159.38.

Churchill Downs Stock Up 2.7 %

The company has a current ratio of 0.57, a quick ratio of 0.55 and a debt-to-equity ratio of 4.47. The stock’s 50-day moving average is $121.42 and its 200-day moving average is $132.34. The company has a market cap of $8.13 billion, a price-to-earnings ratio of 19.45, a P/E/G ratio of 2.95 and a beta of 0.93.

Churchill Downs (NASDAQ:CHDN) last released its earnings results 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). Churchill Downs had a net margin of 15.61% and a return on equity of 43.67%. The company had revenue of $624.20 million for the quarter, compared to analyst estimates of $620.21 million. On average, analysts anticipate that Churchill Downs Incorporated will post 6.92 earnings per share for the current fiscal year.

Churchill Downs declared that its board has initiated a share buyback plan on Wednesday, March 12th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to buy up to 6.4% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Blue Trust Inc. raised its holdings in Churchill Downs by 127.2% during the fourth quarter. Blue Trust Inc. now owns 184 shares of the company’s stock worth $25,000 after buying an additional 103 shares during the last quarter. Wilmington Savings Fund Society FSB acquired a new position in Churchill Downs during the third quarter worth $27,000. Fortitude Family Office LLC raised its holdings in Churchill Downs by 2,733.3% during 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 last quarter. Eagle Bay Advisors LLC acquired a new position in Churchill Downs during the fourth quarter worth $55,000. Finally, R Squared Ltd acquired a new position in Churchill Downs during the fourth quarter worth $55,000. Institutional investors and hedge funds own 82.59% of the company’s stock.

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; casino gaming; and Terre Haute Casino Resort.