Churchill Downs (NASDAQ:CHDN) Shares Gap Up on Strong Earnings

Shares of Churchill Downs Incorporated (NASDAQ:CHDN) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $123.39, but opened at $130.03. Churchill Downs shares last traded at $132.51, with a volume of 203,153 shares changing hands.

The company reported $1.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.78 by $0.35. Churchill Downs had a return on equity of 44.33% and a net margin of 13.72%. The firm had revenue of $590.90 million for the quarter, compared to analysts’ expectations of $565.41 million. During the same quarter in the previous year, the firm posted $0.98 EPS. The firm’s revenue for the quarter was up 5.6% on a year-over-year basis.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. StockNews.com raised Churchill Downs from a “sell” rating to a “hold” rating in a report on Friday. Truist Financial raised their target price on shares of Churchill Downs from $140.00 to $145.00 and gave the stock a “buy” rating in a research note on Friday. Mizuho boosted their price target on shares of Churchill Downs from $142.00 to $143.00 and gave the stock a “buy” rating in a research note on Friday. Stifel Nicolaus increased their price target on shares of Churchill Downs from $150.00 to $153.00 and gave the stock a “buy” rating in a report on Friday. Finally, Wells Fargo & Company upgraded Churchill Downs from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $137.00 to $141.00 in a research report on Monday, April 15th. One research analyst has rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. Based on data from MarketBeat, Churchill Downs presently has a consensus rating of “Moderate Buy” and a consensus target price of $144.50.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. UMB Bank n.a. boosted its stake in shares of Churchill Downs by 59.8% during the 1st quarter. UMB Bank n.a. now owns 286 shares of the company’s stock worth $35,000 after acquiring an additional 107 shares in the last quarter. Benjamin F. Edwards & Company Inc. purchased a new stake in Churchill Downs during the fourth quarter worth $39,000. Vestor Capital LLC acquired a new stake in Churchill Downs in the fourth quarter valued at $45,000. GAMMA Investing LLC purchased a new position in shares of Churchill Downs in the fourth quarter valued at $66,000. Finally, Covestor Ltd raised its stake in shares of Churchill Downs by 44.0% during the 3rd quarter. Covestor Ltd now owns 848 shares of the company’s stock worth $98,000 after buying an additional 259 shares during the last quarter. 82.59% of the stock is currently owned by institutional investors and hedge funds.

Churchill Downs Stock Up 0.2 %

The firm has a market capitalization of $9.54 billion, a PE ratio of 28.83, a price-to-earnings-growth ratio of 8.59 and a beta of 1.03. The firm’s 50-day moving average is $119.79 and its 200 day moving average is $120.64. The company has a debt-to-equity ratio of 5.34, a quick ratio of 0.53 and a current ratio of 0.53.

Churchill Downs Company Profile

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; and casino gaming.