Churchill Downs Incorporated (NASDAQ:CHDN) Sees Large Increase in Short Interest

Churchill Downs Incorporated (NASDAQ:CHDN) was the target of a significant growth in short interest during the month of February. As of February 28th, there was short interest totalling 1,660,000 shares, a growth of 23.0% from the February 13th total of 1,350,000 shares. Approximately 2.4% of the company’s shares are short sold. Based on an average daily volume of 536,200 shares, the days-to-cover ratio is currently 3.1 days.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the company. JMP Securities reissued a “market outperform” rating and issued a $166.00 price target on shares of Churchill Downs in a research note on Thursday, January 16th. Stifel Nicolaus reduced their target price on shares of Churchill Downs from $164.00 to $161.00 and set a “buy” rating on the stock in a report on Friday, February 21st. Mizuho decreased their price target on Churchill Downs from $151.00 to $148.00 and set an “outperform” rating for the company in a report on Wednesday, February 19th. Wells Fargo & Company lowered 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. Finally, StockNews.com raised shares of Churchill Downs from a “sell” rating to a “hold” rating in a research report on Wednesday. One investment analyst has rated the stock with a hold rating and eight have assigned a buy rating to the company. According to MarketBeat, Churchill Downs presently has a consensus rating of “Moderate Buy” and a consensus target price of $159.38.

Churchill Downs Stock Up 2.3 %

Shares of Churchill Downs stock opened at $112.97 on Thursday. The stock has a market capitalization of $8.31 billion, a price-to-earnings ratio of 19.89, a PEG ratio of 2.95 and a beta of 0.93. The business’s 50 day simple moving average is $119.82 and its 200-day simple moving average is $131.55. The company has a current ratio of 0.57, a quick ratio of 0.55 and a debt-to-equity ratio of 4.47. Churchill Downs has a twelve month low of $105.18 and a twelve month high of $150.21.

Churchill Downs (NASDAQ:CHDN) last posted its earnings results on Wednesday, February 19th. The company reported $0.92 EPS for the quarter, missing the consensus estimate of $0.98 by ($0.06). The firm had revenue of $624.20 million during the quarter, compared to the consensus estimate of $620.21 million. Churchill Downs had a return on equity of 43.67% and a net margin of 15.61%. Equities research analysts forecast that Churchill Downs will post 6.92 earnings per share for the current year.

Churchill Downs declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, March 12th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 6.4% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board believes its shares are undervalued.

Churchill Downs Announces Dividend

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

Institutional Trading of Churchill Downs

A number of hedge funds and other institutional investors have recently modified their holdings of CHDN. Blue Trust Inc. grew its stake in shares of Churchill Downs by 127.2% in the 4th quarter. Blue Trust Inc. now owns 184 shares of the company’s stock worth $25,000 after purchasing an additional 103 shares during the last quarter. Wilmington Savings Fund Society FSB acquired a new position in Churchill Downs during the third quarter valued at $27,000. Fortitude Family Office LLC lifted 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 purchasing an additional 246 shares in the last quarter. Eagle Bay Advisors LLC purchased a new stake in Churchill Downs in the 4th quarter worth approximately $55,000. Finally, R Squared Ltd purchased a new stake in shares of Churchill Downs during the fourth quarter worth $55,000. 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.