Churchill Downs (NASDAQ:CHDN) Hits New 1-Year Low – Should You Sell?

Churchill Downs Incorporated (NASDAQ:CHDN) shares reached a new 52-week low on Thursday . The stock traded as low as $105.18 and last traded at $106.50, with a volume of 658805 shares. The stock had previously closed at $108.60.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the stock. Wells Fargo & Company lowered their price objective on shares of Churchill Downs from $165.00 to $158.00 and set an “overweight” rating on the stock in a report on Friday, February 21st. StockNews.com lowered shares of Churchill Downs from a “hold” rating to a “sell” rating in a research note on Tuesday. Stifel Nicolaus reduced their target price on shares of Churchill Downs from $164.00 to $161.00 and set a “buy” rating for the company in a research note on Friday, February 21st. Mizuho reduced their target price on shares of Churchill Downs from $151.00 to $148.00 and set an “outperform” rating for the company in a research note on Wednesday, February 19th. Finally, JMP Securities reiterated a “market outperform” rating and issued a $166.00 target price on shares of Churchill Downs in a research note on Thursday, January 16th. One equities research analyst has rated the stock with a sell rating and eight have given a buy rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $159.38.

Churchill Downs Stock Performance

The company has a market cap of $8.13 billion, a P/E ratio of 19.45, a price-to-earnings-growth ratio of 2.95 and a beta of 0.93. The company’s 50-day moving average is $121.42 and its two-hundred day moving average is $132.34. The company has a quick ratio of 0.55, a current ratio of 0.57 and a debt-to-equity ratio of 4.47.

Churchill Downs (NASDAQ:CHDN) last posted its quarterly earnings results on Wednesday, February 19th. The company reported $0.92 earnings per share for the quarter, missing the consensus estimate of $0.98 by ($0.06). The company had revenue of $624.20 million for the quarter, compared to the consensus estimate of $620.21 million. Churchill Downs had a net margin of 15.61% and a return on equity of 43.67%. Equities analysts predict that Churchill Downs Incorporated will post 6.92 EPS for the current year.

Churchill Downs declared that its board has authorized a stock buyback plan on Wednesday, March 12th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to reacquire up to 6.4% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board believes its shares are undervalued.

Hedge Funds Weigh In On Churchill Downs

Several institutional investors have recently added to or reduced their stakes in the stock. Blue Trust Inc. lifted its holdings in Churchill Downs by 127.2% during the fourth quarter. Blue Trust Inc. now owns 184 shares of the company’s stock valued at $25,000 after purchasing an additional 103 shares during the last quarter. Wilmington Savings Fund Society FSB purchased a new stake in Churchill Downs during the third quarter valued at about $27,000. Fortitude Family Office LLC lifted its holdings in Churchill Downs by 2,733.3% during the fourth quarter. Fortitude Family Office LLC now owns 255 shares of the company’s stock valued at $34,000 after purchasing an additional 246 shares during the last quarter. Eagle Bay Advisors LLC purchased a new stake in Churchill Downs during the fourth quarter valued at about $55,000. Finally, R Squared Ltd purchased a new stake in Churchill Downs during the fourth quarter valued at about $55,000. Institutional investors own 82.59% of the company’s stock.

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.