Churchill Downs (NASDAQ:CHDN) Stock Rating Lowered by StockNews.com

Churchill Downs (NASDAQ:CHDN) was downgraded by equities research analysts at StockNews.com from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.

CHDN has been the subject of several other research reports. JMP Securities restated a “market outperform” rating and set a $166.00 price target on shares of Churchill Downs in a report on Thursday, January 16th. Wells Fargo & Company cut their price objective 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 reduced their price target on shares of Churchill Downs from $151.00 to $148.00 and set an “outperform” rating for the company in a research report on Wednesday, February 19th. Finally, Stifel Nicolaus cut their price target on Churchill Downs from $164.00 to $161.00 and set a “buy” rating for the company in a research note on Friday, February 21st. One research analyst has rated the stock with a sell rating and eight have assigned a buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $159.38.

Churchill Downs Price Performance

NASDAQ:CHDN opened at $106.50 on Tuesday. The company has a debt-to-equity ratio of 4.47, a quick ratio of 0.55 and a current ratio of 0.57. Churchill Downs has a 52 week low of $105.18 and a 52 week high of $150.21. The firm’s 50-day simple moving average is $121.90 and its 200 day simple moving average is $132.51. The firm has a market cap of $7.83 billion, a price-to-earnings ratio of 18.75, a P/E/G ratio of 2.95 and a beta of 0.93.

Churchill Downs (NASDAQ:CHDN) last issued its earnings results on Wednesday, February 19th. The company reported $0.92 earnings per share for the quarter, missing analysts’ consensus estimates of $0.98 by ($0.06). The business had revenue of $624.20 million during the quarter, compared to analyst estimates of $620.21 million. Churchill Downs had a net margin of 15.61% and a return on equity of 43.67%. As a group, sell-side analysts predict that Churchill Downs will post 6.92 earnings per share for the current year.

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

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Blue Trust Inc. grew its stake in shares of Churchill Downs by 127.2% during the 4th quarter. Blue Trust Inc. now owns 184 shares of the company’s stock valued at $25,000 after purchasing an additional 103 shares during the period. Wilmington Savings Fund Society FSB bought a new position in Churchill Downs in the 3rd quarter worth approximately $27,000. Fortitude Family Office LLC grew its stake in Churchill Downs by 2,733.3% during the fourth quarter. Fortitude Family Office LLC now owns 255 shares of the company’s stock valued at $34,000 after acquiring an additional 246 shares in the last quarter. Eagle Bay Advisors LLC purchased a new position in shares of Churchill Downs during the fourth quarter valued at about $55,000. Finally, R Squared Ltd purchased a new position in Churchill Downs during the 4th quarter valued at approximately $55,000. 82.59% of the stock is owned by hedge funds and other institutional investors.

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.