Churchill Downs (NASDAQ:CHDN) Trading 5.9% Higher – Should You Buy?

Shares of Churchill Downs, Incorporated (NASDAQ:CHDN) rose 5.9% on Wednesday . The company traded as high as $85.09 and last traded at $85.3570. 596,380 shares were traded during trading, a decline of 39% from the average daily volume of 970,048 shares. The stock had previously closed at $80.60.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on CHDN. Citigroup reiterated an “outperform” rating on shares of Churchill Downs in a report on Friday, July 31st. Wolfe Research assumed coverage on Churchill Downs in a research report on Wednesday, September 2nd. They set an “outperform” rating and a $119.00 target price on the stock. Weiss Ratings upgraded Churchill Downs from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, September 2nd. Citizens Jmp reduced their price target on shares of Churchill Downs from $149.00 to $137.00 and set a “market outperform” rating for the company in a research report on Friday, July 31st. Finally, Wells Fargo & Company reduced their price target on shares of Churchill Downs from $120.00 to $117.00 and set an “overweight” rating for the company in a research report on Friday, July 31st. Ten investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, Churchill Downs currently has an average rating of “Moderate Buy” and an average price target of $134.89.

Churchill Downs Price Performance

The firm has a market cap of $5.87 billion, a price-to-earnings ratio of 14.49, a P/E/G ratio of 0.79 and a beta of 0.67. The company has a debt-to-equity ratio of 3.06, a quick ratio of 0.36 and a current ratio of 0.36. The business has a 50 day simple moving average of $86.67 and a 200-day simple moving average of $88.05.

Churchill Downs (NASDAQ:CHDN) last issued its quarterly earnings data on Wednesday, July 29th. The company reported $3.45 EPS for the quarter, hitting analysts’ consensus estimates of $3.45. Churchill Downs had a return on equity of 42.16% and a net margin of 13.82%.The firm had revenue of $980.00 million during the quarter, compared to analyst estimates of $977.38 million. During the same period in the previous year, the company posted $3.10 EPS. The company’s revenue for the quarter was up 4.9% on a year-over-year basis. Equities research analysts expect that Churchill Downs, Incorporated will post 7.14 earnings per share for the current year.

Institutional Investors Weigh In On Churchill Downs

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Sanctuary Advisors LLC raised its stake in Churchill Downs by 0.5% during the 1st quarter. Sanctuary Advisors LLC now owns 27,600 shares of the company’s stock valued at $2,479,000 after purchasing an additional 125 shares during the period. Concurrent Investment Advisors LLC grew its holdings in Churchill Downs by 6.4% during the 2nd quarter. Concurrent Investment Advisors LLC now owns 3,610 shares of the company’s stock valued at $324,000 after buying an additional 217 shares in the last quarter. Essential Partners LLC raised its position in shares of Churchill Downs by 64.7% during the first quarter. Essential Partners LLC now owns 578 shares of the company’s stock valued at $52,000 after buying an additional 227 shares during the last quarter. Oregon Public Employees Retirement Fund raised its position in shares of Churchill Downs by 2.3% during the first quarter. Oregon Public Employees Retirement Fund now owns 13,578 shares of the company’s stock valued at $1,220,000 after buying an additional 300 shares during the last quarter. Finally, State of Michigan Retirement System lifted its holdings in shares of Churchill Downs by 1.9% in the first quarter. State of Michigan Retirement System now owns 15,980 shares of the company’s stock worth $1,435,000 after buying an additional 300 shares in the last quarter. 82.59% of the stock is owned by hedge funds and other institutional investors.

About Churchill Downs

Churchill Downs Incorporated is a gaming, entertainment and racing company headquartered in Louisville, Kentucky. The company owns and operates Churchill Downs Racetrack, home of the Kentucky Derby, as well as other thoroughbred racing venues, casinos, racinos and historical horse racing facilities.

Its operations include live and historical horse racing, casino gaming, video lottery and other gaming activities, hospitality, dining and entertainment. Through its TwinSpires business, Churchill Downs also provides online horse-racing wagering and related digital betting services in jurisdictions where such activities are permitted.

Founded in 1875, Churchill Downs has expanded from its namesake racetrack into a diversified gaming and entertainment company.