Churchill Downs (CHDN) Upgraded to “Hold” at Zacks Investment Research

Zacks Investment Research upgraded shares of Churchill Downs (NASDAQ:CHDN) from a sell rating to a hold rating in a research report released on Thursday.

According to Zacks, “Churchill Downs, the world’s most legendary racetrack, has conducted Thoroughbred racing and presented America’s greatest race, the Kentucky Derby. Churchill Downs, Inc. has Five racetracks; Six casinos; Big Fish Games, the world’s largest distributor of casual games; The country’s leading online wagering business, TwinSpires.com; A video poker business, A multi-state network of off-track betting (OTB) facilities; and a collection of racing-related data, totalisator and telecommunication companies that support CDI’s sports and gaming operations. CDI owes much to its horse racing heritage and is expanding on that tradition while evolving its business mix, management team and growth strategies to navigate any challenges. CDI’s launch of TwinSpires.com, an advance-deposit waging platform that allows customers to wager on horse racing from computers, tablet devices and smart phones, created another retail outlet for wagering transactions and data distribution. “

Other equities research analysts have also recently issued reports about the stock. BidaskClub cut shares of Churchill Downs from a buy rating to a hold rating in a research report on Wednesday, October 24th. ValuEngine cut shares of Churchill Downs from a buy rating to a hold rating in a research report on Wednesday, August 15th. Finally, Jefferies Financial Group set a $325.00 price objective on shares of Churchill Downs and gave the stock a hold rating in a research report on Thursday, September 20th. They noted that the move was a valuation call. Five analysts have rated the stock with a hold rating, The stock has an average rating of Hold and a consensus price target of $316.67.

Shares of CHDN traded down $9.20 during trading hours on Thursday, hitting $265.00. 113,769 shares of the stock were exchanged, compared to its average volume of 104,777. Churchill Downs has a fifty-two week low of $211.20 and a fifty-two week high of $314.60. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 1.71. The stock has a market cap of $3.65 billion, a PE ratio of 45.07, a price-to-earnings-growth ratio of 1.25 and a beta of 1.07.

Churchill Downs (NASDAQ:CHDN) last posted its quarterly earnings data on Wednesday, October 31st. The company reported $1.05 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $1.48 by ($0.43). Churchill Downs had a return on equity of 30.33% and a net margin of 39.18%. The firm had revenue of $221.30 million for the quarter, compared to analyst estimates of $208.87 million. During the same quarter last year, the company earned $1.08 earnings per share. The company’s quarterly revenue was up 12.4% compared to the same quarter last year. Sell-side analysts anticipate that Churchill Downs will post 10.82 EPS for the current fiscal year.

The business also recently declared an annual dividend, which will be paid on Friday, January 4th. Shareholders of record on Friday, December 7th will be issued a $1.63 dividend. This represents a yield of 0.6%. This is a boost from Churchill Downs’s previous annual dividend of $1.52. The ex-dividend date of this dividend is Thursday, December 6th. Churchill Downs’s dividend payout ratio (DPR) is presently 25.85%.

In related news, Director Richard L. Duchossois purchased 3,700 shares of Churchill Downs stock in a transaction on Tuesday, November 6th. The stock was acquired at an average cost of $271.47 per share, for a total transaction of $1,004,439.00. Following the completion of the acquisition, the director now owns 12,137 shares of the company’s stock, valued at approximately $3,294,831.39. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Richard L. Duchossois acquired 1,900 shares of the company’s stock in a transaction on Friday, November 9th. The stock was acquired at an average cost of $265.83 per share, for a total transaction of $505,077.00. Following the completion of the purchase, the director now directly owns 8,550 shares of the company’s stock, valued at approximately $2,272,846.50. The disclosure for this purchase can be found here. Company insiders own 13.78% of the company’s stock.

Institutional investors have recently added to or reduced their stakes in the business. Macquarie Group Ltd. bought a new position in shares of Churchill Downs in the second quarter valued at $119,000. Fort L.P. bought a new position in shares of Churchill Downs in the second quarter valued at $120,000. Stratos Wealth Partners LTD. bought a new position in shares of Churchill Downs in the third quarter valued at $143,000. Private Advisor Group LLC bought a new position in shares of Churchill Downs in the third quarter valued at $202,000. Finally, Robeco Institutional Asset Management B.V. bought a new position in shares of Churchill Downs in the second quarter valued at $203,000. 69.91% of the stock is currently owned by hedge funds and other institutional investors.

Churchill Downs Company Profile

Churchill Downs Incorporated operates as a racing, gaming, and online entertainment company in the United States. It operates through Racing, Casinos, TwinSpires, and Other Investments segments. The company operates 4 racetracks, including Churchill Downs Racetrack in Louisville, Kentucky; Arlington International Race Course in Arlington Heights with 11 off-track betting (OTB) facilities in Illinois; Fair Grounds Race Course in New Orleans along with 12 OTBs in Louisiana; and Calder Race Course in Miami Gardens, Florida.

Featured Story: What is Considered a Good Return on Equity (ROE)?

Get a free copy of the Zacks research report on Churchill Downs (CHDN)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Receive News & Ratings for Churchill Downs Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Churchill Downs and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply