Zacks Investment Research Upgrades Churchill Downs (NASDAQ:CHDN) to “Hold”

Zacks Investment Research upgraded shares of Churchill Downs (NASDAQ:CHDN) from a strong sell rating to a hold rating in a report released on Tuesday morning, Zacks.com reports.

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 analysts have also issued research reports about the stock. ValuEngine lowered shares of Churchill Downs from a sell rating to a strong sell rating in a research report on Wednesday, September 4th. Susquehanna Bancshares assumed coverage on shares of Churchill Downs in a research report on Wednesday, July 24th. They issued a positive rating and a $140.00 price objective on the stock. BidaskClub lowered shares of Churchill Downs from a strong-buy rating to a buy rating in a research report on Saturday, September 7th. Jefferies Financial Group lifted their price objective on shares of Churchill Downs from $135.00 to $150.00 and gave the stock a buy rating in a research report on Friday, August 2nd. They noted that the move was a valuation call. Finally, Telsey Advisory Group lifted their price objective on shares of Churchill Downs from $120.00 to $135.00 and gave the stock an outperform rating in a research report on Monday, July 1st. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and four have given a buy rating to the stock. Churchill Downs currently has an average rating of Hold and an average price target of $132.20.

Shares of CHDN stock opened at $123.03 on Tuesday. The firm has a market cap of $4.97 billion, a price-to-earnings ratio of 29.52, a P/E/G ratio of 1.45 and a beta of 1.20. The company has a debt-to-equity ratio of 2.66, a quick ratio of 1.13 and a current ratio of 1.13. Churchill Downs has a 52 week low of $74.58 and a 52 week high of $132.73. The firm’s 50-day simple moving average is $121.91 and its two-hundred day simple moving average is $106.75.

Churchill Downs (NASDAQ:CHDN) last announced its quarterly earnings data on Wednesday, July 31st. The company reported $2.83 EPS for the quarter, missing the consensus estimate of $2.84 by ($0.01). The company had revenue of $477.40 million during the quarter, compared to the consensus estimate of $469.85 million. Churchill Downs had a return on equity of 34.23% and a net margin of 15.76%. The business’s revenue was up 25.8% on a year-over-year basis. During the same period in the prior year, the firm posted $7.71 EPS. Analysts forecast that Churchill Downs will post 4.29 earnings per share for the current year.

In other news, SVP Austin W. Miller sold 5,900 shares of the business’s stock in a transaction that occurred on Monday, July 8th. The shares were sold at an average price of $117.31, for a total value of $692,129.00. Following the sale, the senior vice president now owns 40,494 shares of the company’s stock, valued at $4,750,351.14. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders own 13.05% of the company’s stock.

Hedge funds and other institutional investors have recently bought and sold shares of the company. FinTrust Capital Advisors LLC bought a new stake in shares of Churchill Downs in the first quarter valued at approximately $27,000. Global Wealth Management Investment Advisory Inc. bought a new stake in shares of Churchill Downs in the first quarter valued at approximately $27,000. Tower Research Capital LLC TRC bought a new stake in shares of Churchill Downs in the second quarter valued at approximately $62,000. NEXT Financial Group Inc raised its position in shares of Churchill Downs by 151.1% in the second quarter. NEXT Financial Group Inc now owns 678 shares of the company’s stock valued at $78,000 after purchasing an additional 408 shares during the period. Finally, Marshall Wace North America L.P. raised its position in shares of Churchill Downs by 200.0% in the first quarter. Marshall Wace North America L.P. now owns 780 shares of the company’s stock valued at $70,000 after purchasing an additional 520 shares during the period. 71.34% of the stock is currently owned by institutional investors.

About Churchill Downs

Churchill Downs Incorporated operates as a racing, gaming, and online entertainment company in the United States. It operates through Racing, Casinos, Online Wagering, and Other Investments and Corporate segments. The company operates 4 racetracks, including Churchill Downs Racetrack in Louisville, Kentucky; Arlington International Race Course in Arlington Heights with 12 off-track betting (OTB) facilities in Illinois; Fair Grounds Race Course in New Orleans along with 14 OTBs in Louisiana; and Calder Race Course in Miami Gardens, Florida.

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