Churchill Downs Incorporated (NASDAQ:CHDN) Sees Significant Increase in Short Interest

Churchill Downs Incorporated (NASDAQ:CHDN) was the target of a large increase in short interest in February. As of February 28th, there was short interest totalling 1,660,000 shares, an increase of 23.0% from the February 13th total of 1,350,000 shares. Approximately 2.4% of the company’s shares are sold short. Based on an average daily trading volume, of 536,200 shares, the short-interest ratio is currently 3.1 days.

Churchill Downs Stock Up 1.3 %

Shares of Churchill Downs stock traded up $1.39 during trading hours on Wednesday, reaching $111.78. 40,619 shares of the company’s stock were exchanged, compared to its average volume of 466,905. The stock has a market cap of $8.22 billion, a P/E ratio of 19.67, a P/E/G ratio of 2.95 and a beta of 0.93. The company has a 50 day moving average of $120.14 and a two-hundred day moving average of $131.68. The company has a current ratio of 0.57, a quick ratio of 0.55 and a debt-to-equity ratio of 4.47. Churchill Downs has a fifty-two week low of $105.18 and a fifty-two week high of $150.21.

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 analysts’ consensus estimates of $0.98 by ($0.06). The company had revenue of $624.20 million during 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%. On average, sell-side analysts forecast that Churchill Downs will post 6.92 EPS for the current fiscal year.

Churchill Downs declared that its board has approved a share buyback program on Wednesday, March 12th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to purchase up to 6.4% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.

Churchill Downs Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, April 15th. Investors of record on Monday, March 31st will be issued a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a dividend yield of 0.21%. Churchill Downs’s payout ratio is presently 7.04%.

Analyst Upgrades and Downgrades

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

Hedge Funds Weigh In On Churchill Downs

Several institutional investors and hedge funds have recently modified their holdings of CHDN. Atria Investments Inc grew its stake in Churchill Downs by 3.9% in the 3rd quarter. Atria Investments Inc now owns 6,004 shares of the company’s stock valued at $812,000 after buying an additional 224 shares during the last quarter. Empowered Funds LLC grew its position in shares of Churchill Downs by 24.0% in the third quarter. Empowered Funds LLC now owns 9,355 shares of the company’s stock valued at $1,265,000 after purchasing an additional 1,810 shares during the last quarter. Natixis Advisors LLC increased its stake in shares of Churchill Downs by 11.7% during the third quarter. Natixis Advisors LLC now owns 120,887 shares of the company’s stock worth $16,345,000 after purchasing an additional 12,614 shares during the period. Mutual of America Capital Management LLC lifted its holdings in Churchill Downs by 3.6% during the 3rd quarter. Mutual of America Capital Management LLC now owns 39,677 shares of the company’s stock worth $5,365,000 after purchasing an additional 1,379 shares during the last quarter. Finally, Thrivent Financial for Lutherans boosted its stake in Churchill Downs by 6.7% in the 3rd quarter. Thrivent Financial for Lutherans now owns 17,248 shares of the company’s stock valued at $2,332,000 after purchasing an additional 1,086 shares during the period. 82.59% of the stock is currently owned by institutional investors and hedge funds.

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.