Churchill Downs (NASDAQ:CHDN) Sets New 12-Month Low – What’s Next?

Churchill Downs Incorporated (NASDAQ:CHDN) shares reached a new 52-week low during mid-day trading on Friday . The stock traded as low as $102.14 and last traded at $103.31, with a volume of 143780 shares. The stock had previously closed at $109.02.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the stock. JMP Securities reiterated a “market outperform” rating and issued a $166.00 price target on shares of Churchill Downs in a report on Thursday, January 16th. Wells Fargo & Company dropped their price target on Churchill Downs from $165.00 to $158.00 and set an “overweight” rating for the company in a research note on Friday, February 21st. Stifel Nicolaus decreased their target price on Churchill Downs from $164.00 to $161.00 and set a “buy” rating for the company in a report on Friday, February 21st. StockNews.com raised shares of Churchill Downs from a “sell” rating to a “hold” rating in a research report on Wednesday, March 19th. Finally, Mizuho reduced their target price on shares of Churchill Downs from $151.00 to $148.00 and set an “outperform” rating on the stock in a research report on Wednesday, February 19th. One equities research analyst has rated the stock with a hold rating and eight have assigned a buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $159.38.

Churchill Downs Trading Down 6.0 %

The stock has a market cap of $7.53 billion, a P/E ratio of 18.06, a price-to-earnings-growth ratio of 2.95 and a beta of 0.86. The firm’s 50 day simple moving average is $116.56 and its two-hundred day simple moving average is $129.53. 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 (NASDAQ:CHDN) last released its quarterly earnings data on Wednesday, February 19th. The company reported $0.92 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.98 by ($0.06). The company had revenue of $624.20 million for 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, equities research analysts predict that Churchill Downs Incorporated will post 6.92 earnings per share for the current fiscal year.

Churchill Downs Announces Dividend

The firm also recently declared 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 dividend on an annualized basis and a dividend yield of 0.23%. Churchill Downs’s dividend payout ratio (DPR) 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 repurchase $500.00 million in shares. This repurchase authorization allows the company to repurchase up to 6.4% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Institutional Trading of Churchill Downs

Hedge funds have recently added to or reduced their stakes in the business. Blue Trust Inc. raised its stake in shares of Churchill Downs by 127.2% during the fourth quarter. Blue Trust Inc. now owns 184 shares of the company’s stock valued at $25,000 after purchasing an additional 103 shares in the last quarter. Wilmington Savings Fund Society FSB acquired a new stake in shares of Churchill Downs in the 3rd quarter worth approximately $27,000. Fortitude Family Office LLC boosted its holdings in shares of Churchill Downs by 2,733.3% in 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 acquired a new position in shares of Churchill Downs during the fourth quarter valued at approximately $55,000. Finally, R Squared Ltd bought a new stake in Churchill Downs during the fourth quarter worth approximately $55,000. Institutional investors own 82.59% of the company’s stock.

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.