Investors Buy High Volume of Churchill Downs Put Options (CHDN)

Churchill Downs, Inc. (NASDAQ:CHDN) saw some unusual options trading activity on Tuesday. Traders bought 1,050 put options on the company. This is an increase of approximately 1,300% compared to the typical daily volume of 75 put options.

Shares of Churchill Downs (NASDAQ CHDN) opened at $252.70 on Friday. The company has a debt-to-equity ratio of 1.77, a quick ratio of 0.57 and a current ratio of 0.57. The stock has a market cap of $3,900.00, a PE ratio of 31.55, a price-to-earnings-growth ratio of 1.53 and a beta of 0.92. Churchill Downs has a one year low of $141.00 and a one year high of $254.75.

Churchill Downs (NASDAQ:CHDN) last issued its quarterly earnings results on Wednesday, November 1st. The company reported $1.08 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.90 by $0.18. The company had revenue of $314.80 million for the quarter, compared to analyst estimates of $308.43 million. Churchill Downs had a net margin of 9.75% and a return on equity of 17.48%. The business’s revenue for the quarter was up 3.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.52 earnings per share. sell-side analysts anticipate that Churchill Downs will post 7.05 EPS for the current fiscal year.

The firm also recently declared an annual dividend, which was paid on Friday, January 5th. Shareholders of record on Friday, December 1st were paid a dividend of $1.52 per share. The ex-dividend date was Thursday, November 30th. This is a positive change from Churchill Downs’s previous annual dividend of $1.32. This represents a yield of 0.73%. Churchill Downs’s dividend payout ratio is 18.98%.

Churchill Downs announced that its Board of Directors has initiated a share buyback program on Wednesday, November 29th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to repurchase shares of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board of directors believes its shares are undervalued.

A number of research analysts have commented on the stock. Jefferies Group initiated coverage on shares of Churchill Downs in a research report on Thursday. They issued a “hold” rating on the stock. Zacks Investment Research upgraded shares of Churchill Downs from a “hold” rating to a “buy” rating and set a $283.00 price target on the stock in a research note on Tuesday. BidaskClub upgraded shares of Churchill Downs from a “hold” rating to a “buy” rating in a research note on Saturday, December 2nd. Finally, Telsey Advisory Group boosted their price target on shares of Churchill Downs from $196.00 to $209.00 and gave the stock a “market perform” rating in a research note on Thursday, October 12th. Two research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. The stock has an average rating of “Buy” and a consensus price target of $233.33.

A number of large investors have recently modified their holdings of the business. BlackRock Inc. increased its stake in Churchill Downs by 0.4% during the second quarter. BlackRock Inc. now owns 1,306,153 shares of the company’s stock worth $239,419,000 after purchasing an additional 4,852 shares during the period. FMR LLC increased its stake in shares of Churchill Downs by 0.3% during the second quarter. FMR LLC now owns 740,145 shares of the company’s stock worth $135,669,000 after buying an additional 2,474 shares during the period. State Street Corp increased its stake in shares of Churchill Downs by 4.3% during the second quarter. State Street Corp now owns 427,609 shares of the company’s stock worth $78,379,000 after buying an additional 17,798 shares during the period. Victory Capital Management Inc. increased its stake in shares of Churchill Downs by 15.3% during the third quarter. Victory Capital Management Inc. now owns 355,575 shares of the company’s stock worth $73,320,000 after buying an additional 47,313 shares during the period. Finally, Northern Trust Corp increased its stake in shares of Churchill Downs by 2.5% during the second quarter. Northern Trust Corp now owns 220,343 shares of the company’s stock worth $40,389,000 after buying an additional 5,474 shares during the period. Institutional investors own 72.50% of the company’s stock.

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Churchill Downs Company Profile

Churchill Downs Incorporated is a racing, gaming and online entertainment company. The Company is engaged in brick-and-mortar casino gaming with approximately 9,030 gaming positions in seven states, and is a legal mobile and online platform for betting on horseracing in the United States. It operates through five segments: Racing, Casinos, TwinSpires, Other Investments and Corporate.

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