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

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Zacks Investment Research downgraded shares of Churchill Downs (NASDAQ:CHDN) from a buy rating to a hold rating in a report published on Wednesday morning.

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. “

A number of other analysts have also issued reports on CHDN. ValuEngine raised Churchill Downs from a sell rating to a hold rating in a research note on Friday, March 1st. BidaskClub raised Churchill Downs from a buy rating to a strong-buy rating in a research note on Wednesday, February 27th. Telsey Advisory Group reduced their price objective on Churchill Downs from $96.67 to $93.33 and set a market perform rating on the stock in a research report on Wednesday, November 14th. JPMorgan Chase & Co. set a $105.00 price objective on Churchill Downs and gave the stock a hold rating in a research report on Friday, March 1st. Finally, Jefferies Financial Group upgraded Churchill Downs from a hold rating to a buy rating and set a $102.00 price objective on the stock in a research report on Friday, January 11th. Four research analysts have rated the stock with a hold rating and two have issued a buy rating to the stock. The company currently has an average rating of Hold and an average target price of $100.42.

Shares of NASDAQ:CHDN opened at $89.18 on Wednesday. The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 1.71. The company has a market capitalization of $3.69 billion, a PE ratio of 24.50, a PEG ratio of 1.05 and a beta of 1.19. Churchill Downs has a 1 year low of $74.58 and a 1 year high of $104.87.

Churchill Downs (NASDAQ:CHDN) last issued its quarterly earnings results on Wednesday, February 27th. The company reported $0.21 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.14 by $0.07. The firm had revenue of $219.00 million for the quarter, compared to analyst estimates of $218.67 million. Churchill Downs had a return on equity of 30.33% and a net margin of 39.18%. The business’s revenue was up 22.4% on a year-over-year basis. During the same period in the previous year, the company posted $0.33 earnings per share. Research analysts anticipate that Churchill Downs will post 4.62 EPS for the current fiscal year.

In related news, Director Richard L. Duchossois acquired 1,950 shares of Churchill Downs stock in a transaction that occurred on Monday, December 17th. The shares were purchased at an average price of $258.62 per share, for a total transaction of $504,309.00. Following the completion of the transaction, the director now owns 8,550 shares in the company, valued at approximately $2,211,201. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 13.78% of the company’s stock.

A number of large investors have recently bought and sold shares of the business. Geode Capital Management LLC raised its position in Churchill Downs by 12.2% in the fourth quarter. Geode Capital Management LLC now owns 150,430 shares of the company’s stock valued at $36,695,000 after purchasing an additional 16,314 shares during the period. Norges Bank acquired a new stake in shares of Churchill Downs in the fourth quarter valued at $28,815,000. Advisory Services Network LLC acquired a new stake in shares of Churchill Downs in the fourth quarter valued at $37,000. Amalgamated Bank grew its stake in shares of Churchill Downs by 137.8% in the fourth quarter. Amalgamated Bank now owns 1,886 shares of the company’s stock valued at $460,000 after buying an additional 1,093 shares in the last quarter. Finally, Legal & General Group Plc grew its stake in shares of Churchill Downs by 5.8% in the fourth quarter. Legal & General Group Plc now owns 12,359 shares of the company’s stock valued at $3,015,000 after buying an additional 678 shares in the last quarter. Institutional investors own 23.83% of the company’s stock.

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.

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