Churchill Downs Incorporated (NASDAQ:CHDN) Given Average Rating of “Buy” by Analysts

Churchill Downs Incorporated (NASDAQ:CHDN) has received an average rating of “Buy” from the eight ratings firms that are presently covering the stock, MarketBeat.com reports. Eight research analysts have rated the stock with a buy recommendation. The average 12 month target price among analysts that have covered the stock in the last year is $159.38.

Several research firms recently weighed in on CHDN. Stifel Nicolaus cut their price target on Churchill Downs from $164.00 to $161.00 and set a “buy” rating on the stock in a research note on Friday, February 21st. JMP Securities reissued a “market outperform” rating and issued a $166.00 target price on shares of Churchill Downs in a research note on Thursday, January 16th. Wells Fargo & Company lowered their price target on Churchill Downs from $165.00 to $158.00 and set an “overweight” rating for the company 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 note on Wednesday, February 19th. Finally, StockNews.com upgraded shares of Churchill Downs from a “sell” rating to a “hold” rating in a research note on Wednesday, March 19th.

Churchill Downs Stock Performance

Shares of CHDN stock opened at $102.66 on Friday. The company’s fifty day moving average price is $116.11 and its 200-day moving average price is $129.27. The stock has a market cap of $7.54 billion, a PE ratio of 18.07, a price-to-earnings-growth ratio of 2.95 and a beta of 0.86. 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 12 month low of $101.62 and a 12 month high of $150.21.

Churchill Downs (NASDAQ:CHDN) last posted its quarterly earnings data on Wednesday, February 19th. The company reported $0.92 EPS for the quarter, missing the consensus estimate of $0.98 by ($0.06). Churchill Downs had a return on equity of 43.67% and a net margin of 15.61%. The business had revenue of $624.20 million for the quarter, compared to the consensus estimate of $620.21 million. On average, equities analysts expect that Churchill Downs will post 6.92 EPS for the current fiscal year.

Churchill Downs announced that its Board of Directors has initiated a stock buyback program on Wednesday, March 12th that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the company to buy up to 6.4% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s management believes its stock is undervalued.

Churchill Downs Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 15th. Stockholders of record on Monday, March 31st will be issued a dividend of $0.06 per share. This represents a $0.24 annualized dividend and a dividend yield of 0.23%. Churchill Downs’s payout ratio is 7.04%.

Institutional Investors Weigh In On Churchill Downs

Hedge funds have recently added to or reduced their stakes in the stock. Blue Trust Inc. grew its holdings in shares of Churchill Downs by 127.2% in the fourth quarter. Blue Trust Inc. now owns 184 shares of the company’s stock worth $25,000 after acquiring an additional 103 shares during the period. Wilmington Savings Fund Society FSB purchased a new position in Churchill Downs in the third quarter worth about $27,000. Fortitude Family Office LLC grew its stake in shares of Churchill Downs by 2,733.3% during the 4th quarter. Fortitude Family Office LLC now owns 255 shares of the company’s stock valued at $34,000 after purchasing an additional 246 shares during the period. MassMutual Private Wealth & Trust FSB increased its position in shares of Churchill Downs by 159.1% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 412 shares of the company’s stock valued at $46,000 after purchasing an additional 253 shares during the last quarter. Finally, Central Pacific Bank Trust Division lifted its stake in shares of Churchill Downs by 39.6% in the 1st quarter. Central Pacific Bank Trust Division now owns 455 shares of the company’s stock worth $51,000 after purchasing an additional 129 shares during the period. 82.59% of the stock is currently 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.