Churchill Downs (NASDAQ:CHDN) Shares Gap Up Following Earnings Beat

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 trading hands.

The company reported $1.13 EPS for the quarter, topping the consensus estimate of $0.78 by $0.35. The firm had revenue of $590.90 million for the quarter, compared to analyst estimates of $565.41 million. Churchill Downs had a net margin of 16.95% and a return on equity of 45.43%. The business’s revenue for the quarter was up 5.6% compared to the same quarter last year. During the same period in the prior year, the business posted $0.98 EPS.

Wall Street Analyst Weigh In

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

Institutional Trading of Churchill Downs

Hedge funds have recently added to or reduced their stakes in the company. Norges Bank acquired a new position in Churchill Downs during the 4th quarter worth approximately $94,137,000. Boston Partners acquired a new position in shares of Churchill Downs during the third quarter worth $47,479,000. Balyasny Asset Management L.P. increased its holdings in Churchill Downs by 113.8% in the fourth quarter. Balyasny Asset Management L.P. now owns 463,555 shares of the company’s stock valued at $62,547,000 after buying an additional 246,769 shares during the last quarter. Jennison Associates LLC raised its stake in Churchill Downs by 28.9% in the fourth quarter. Jennison Associates LLC now owns 803,074 shares of the company’s stock valued at $108,359,000 after buying an additional 179,814 shares in the last quarter. Finally, Barlow Wealth Partners Inc. purchased a new stake in Churchill Downs during the 4th quarter worth about $20,669,000. Institutional investors and hedge funds own 82.59% of the company’s stock.

Churchill Downs Trading Up 4.7 %

The company has a debt-to-equity ratio of 5.34, a quick ratio of 0.53 and a current ratio of 0.53. The firm has a market capitalization of $9.52 billion, a price-to-earnings ratio of 23.69, a PEG ratio of 8.60 and a beta of 1.03. The company has a 50-day moving average price of $119.60 and a 200-day moving average price of $120.58.

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; and casino gaming.