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

Shares of Churchill Downs Incorporated (NASDAQ:CHDN) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. 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 EPS for the quarter, topping the consensus estimate of $0.78 by $0.35. Churchill Downs had a net margin of 16.95% and a return on equity of 45.43%. The firm had revenue of $590.90 million for the quarter, compared to analyst estimates of $565.41 million. During the same period in the prior year, the business posted $0.98 EPS. The business’s revenue for the quarter was up 5.6% compared to the same quarter last year.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on CHDN shares. JMP Securities restated a “market outperform” rating and issued a $150.00 price objective on shares of Churchill Downs in a report on Wednesday, April 10th. Mizuho assumed coverage on shares of Churchill Downs in a report on Tuesday, March 26th. They set a “buy” rating and a $142.00 target price on the stock. Finally, Wells Fargo & Company upgraded shares of Churchill Downs from an “equal weight” rating to an “overweight” rating and increased their target price for the stock from $137.00 to $141.00 in a report on Monday, April 15th. One analyst has rated the stock with a sell rating and eight have assigned a buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $143.13.

Institutional Investors Weigh In On Churchill Downs

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Benjamin F. Edwards & Company Inc. acquired a new stake in shares of Churchill Downs in the 4th quarter worth $39,000. Vestor Capital LLC acquired a new stake in shares of Churchill Downs in the 4th quarter worth $45,000. GAMMA Investing LLC acquired a new stake in shares of Churchill Downs in the 4th quarter worth $66,000. Covestor Ltd lifted its stake in shares of Churchill Downs by 44.0% in the 3rd quarter. Covestor Ltd now owns 848 shares of the company’s stock worth $98,000 after acquiring an additional 259 shares during the period. Finally, KBC Group NV acquired a new stake in shares of Churchill Downs in the 4th quarter worth $149,000. 82.59% of the stock is currently owned by institutional investors and hedge funds.

Churchill Downs Price Performance

The company has a current ratio of 0.53, a quick ratio of 0.53 and a debt-to-equity ratio of 5.34. The company’s 50 day moving average price is $119.55 and its 200 day moving average price is $120.56. The company has a market cap of $9.76 billion, a price-to-earnings ratio of 24.25, a PEG ratio of 8.60 and a beta of 1.03.

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.