Capital International Investors Lowers Holdings in Churchill Downs Incorporated (NASDAQ:CHDN)

Capital International Investors lowered its holdings in Churchill Downs Incorporated (NASDAQ:CHDN) by 37.4% during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 1,196,251 shares of the company’s stock after selling 713,891 shares during the quarter. Capital International Investors’ holdings in Churchill Downs were worth $159,747,000 as of its most recent SEC filing.

Several other large investors have also modified their holdings of CHDN. Norges Bank purchased a new stake in Churchill Downs in the fourth quarter valued at approximately $74,967,000. Boston Partners lifted its stake in Churchill Downs by 25.6% during the 4th quarter. Boston Partners now owns 1,794,630 shares of the company’s stock worth $239,619,000 after acquiring an additional 366,283 shares in the last quarter. FMR LLC lifted its stake in Churchill Downs by 6.4% during the 4th quarter. FMR LLC now owns 3,592,087 shares of the company’s stock worth $479,687,000 after acquiring an additional 214,694 shares in the last quarter. Clearbridge Investments LLC purchased a new position in Churchill Downs during the 4th quarter valued at about $28,369,000. Finally, Raymond James Financial Inc. acquired a new position in Churchill Downs in the 4th quarter valued at about $16,015,000. Institutional investors and hedge funds own 82.59% of the company’s stock.

Wall Street Analyst Weigh In

CHDN has been the subject of several recent research reports. Stifel Nicolaus lowered their price objective on shares of Churchill Downs from $161.00 to $142.00 and set a “buy” rating for the company in a research note on Thursday, April 10th. StockNews.com lowered Churchill Downs from a “hold” rating to a “sell” rating in a research report on Tuesday, April 8th. Mizuho lowered their target price on Churchill Downs from $151.00 to $148.00 and set an “outperform” rating for the company in a research note on Wednesday, February 19th. 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. Finally, Barclays began coverage on Churchill Downs in a research note on Friday, April 11th. They issued an “overweight” rating and a $125.00 price objective for the company. One research analyst has rated the stock with a sell rating and nine have issued a buy rating to the stock. According to data from MarketBeat.com, Churchill Downs currently has a consensus rating of “Moderate Buy” and a consensus target price of $153.44.

Churchill Downs Stock Performance

Shares of Churchill Downs stock opened at $101.36 on Friday. The firm has a market capitalization of $7.45 billion, a P/E ratio of 17.85, a P/E/G ratio of 2.95 and a beta of 0.86. The company has a quick ratio of 0.55, a current ratio of 0.57 and a debt-to-equity ratio of 4.47. Churchill Downs Incorporated has a 52 week low of $96.67 and a 52 week high of $150.21. The firm’s 50 day moving average is $110.87 and its two-hundred day moving average is $126.39.

Churchill Downs (NASDAQ:CHDN) last announced its quarterly earnings results 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 company had revenue of $624.20 million for the quarter, compared to analyst estimates of $620.21 million. Research analysts forecast that Churchill Downs Incorporated will post 6.92 EPS for the current fiscal year.

Churchill Downs Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, April 15th. Investors of record on Monday, March 31st were paid a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a yield of 0.24%. Churchill Downs’s dividend payout ratio is presently 7.04%.

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

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; casino gaming; and Terre Haute Casino Resort.