Churchill Downs (NASDAQ:CHDN) Sees Large Volume Increase – Should You Buy?

Shares of Churchill Downs Incorporated (NASDAQ:CHDN) saw unusually-strong trading volume on Thursday . Approximately 600,771 shares traded hands during mid-day trading, an increase of 48% from the previous session’s volume of 405,976 shares.The stock last traded at $124.77 and had previously closed at $126.89.

Analysts Set New Price Targets

Several analysts have issued reports on CHDN shares. JMP Securities reaffirmed a “market outperform” rating and issued a $166.00 target price on shares of Churchill Downs in a research note on Thursday. StockNews.com raised shares of Churchill Downs from a “sell” rating to a “hold” rating in a report on Wednesday, November 6th. Mizuho lowered their price target on shares of Churchill Downs from $157.00 to $151.00 and set an “outperform” rating for the company in a research note on Tuesday, October 22nd. Truist Financial reaffirmed a “buy” rating and set a $165.00 price objective (down from $166.00) on shares of Churchill Downs in a research note on Friday, October 25th. Finally, Wells Fargo & Company boosted their target price on Churchill Downs from $161.00 to $168.00 and gave the company an “overweight” rating in a research note on Thursday, October 17th. One investment analyst has rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $160.88.

Churchill Downs Price Performance

The company has a debt-to-equity ratio of 4.35, a quick ratio of 0.55 and a current ratio of 0.55. The business has a 50-day simple moving average of $136.33 and a 200 day simple moving average of $137.75. The firm has a market cap of $9.15 billion, a P/E ratio of 22.68, a price-to-earnings-growth ratio of 2.97 and a beta of 0.96.

Churchill Downs (NASDAQ:CHDN) last announced its earnings results on Wednesday, October 23rd. The company reported $0.97 EPS for the quarter, beating analysts’ consensus estimates of $0.96 by $0.01. The company had revenue of $628.50 million during the quarter, compared to the consensus estimate of $627.90 million. Churchill Downs had a return on equity of 45.48% and a net margin of 15.45%. The firm’s revenue for the quarter was up 9.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.87 earnings per share. On average, analysts anticipate that Churchill Downs Incorporated will post 5.84 earnings per share for the current fiscal year.

Churchill Downs Increases Dividend

The business also recently announced an annual dividend, which was paid on Friday, January 3rd. Stockholders of record on Friday, December 6th were paid a dividend of $0.409 per share. This is a positive change from Churchill Downs’s previous annual dividend of $0.38. The ex-dividend date was Friday, December 6th. This represents a dividend yield of 0.29%. Churchill Downs’s payout ratio is presently 7.47%.

Hedge Funds Weigh In On Churchill Downs

Institutional investors have recently bought and sold shares of the stock. Wilmington Savings Fund Society FSB purchased a new position in shares of Churchill Downs during the 3rd quarter worth approximately $27,000. Fortitude Family Office LLC grew its stake in Churchill Downs by 2,733.3% in the fourth quarter. Fortitude Family Office LLC now owns 255 shares of the company’s stock worth $34,000 after purchasing an additional 246 shares during the period. Kimelman & Baird LLC purchased a new stake in Churchill Downs in the second quarter worth $42,000. Eagle Bay Advisors LLC bought a new position in Churchill Downs in the fourth quarter worth $55,000. Finally, UMB Bank n.a. lifted its position in Churchill Downs by 82.8% during the third quarter. UMB Bank n.a. now owns 563 shares of the company’s stock valued at $76,000 after buying an additional 255 shares during the period. 82.59% of the stock is owned by institutional investors.

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; casino gaming; and Terre Haute Casino Resort.