Churchill Downs (NASDAQ:CHDN) Trading Down 9.4% – Here’s What Happened

Churchill Downs, Incorporated (NASDAQ:CHDN) shares were down 9.4% during trading on Thursday . The company traded as low as $80.64 and last traded at $80.1770. 1,397,085 shares traded hands during trading, an increase of 46% from the average session volume of 959,434 shares. The stock had previously closed at $88.53.

Key Headlines Impacting Churchill Downs

Here are the key news stories impacting Churchill Downs this week:

• Positive Sentiment: Analysts remain bullish despite target adjustments. Susquehanna raised its price target from $121 to $124 and kept a positive rating. Wells Fargo and Citizens JMP lowered their targets to $117 and $137, respectively, but maintained “overweight” and “market outperform” ratings. All three targets imply substantial upside from recent trading levels. Benzinga analyst rating coverage
• Positive Sentiment: Quarterly revenue increased year over year. Churchill Downs reported second-quarter revenue of approximately $980 million, up 4.9% from the prior year and slightly ahead of the roughly $977 million consensus estimate. Adjusted earnings of $3.45 per share matched the company’s reported consensus estimate and increased from $3.10 a year earlier. Churchill Downs Q2 sales report
• Positive Sentiment: Churchill Downs is expanding its wagering and racing operations. The company agreed to buy back NYRA’s 49% stake in United Tote, restoring full ownership of the pari-mutuel technology and services business. It also outlined a $285 million Victory Run development ahead of the 2028 Kentucky Derby, which could support long-term growth and enhance the Churchill Downs property. United Tote stake acquisition Victory Run development and gaming asset sales
• Neutral Sentiment: Strategic asset sales could reshape the portfolio. Management is pursuing potential sales of nine regional casinos as part of a broader review of its gaming assets. Proceeds could improve capital flexibility, although the outcome and valuation of any transactions remain uncertain. Strategic gaming asset review
• Negative Sentiment: The earnings reaction was pressured by elevated expectations. One data provider cited EPS of $3.45 as below its $3.51 consensus estimate, while conference-call commentary may have raised concerns about margins or forward momentum after strong Derby-related performance. The planned Victory Run investment and Churchill Downs’ high leverage also keep capital-spending and balance-sheet risks in focus. Churchill Downs Q2 earnings estimate comparison

Analyst Upgrades and Downgrades

CHDN has been the topic of several research analyst reports. Truist Financial set a $145.00 price objective on Churchill Downs in a research report on Friday, June 12th. Susquehanna raised their target price on Churchill Downs from $121.00 to $124.00 and gave the company a “positive” rating in a research report on Friday. Mizuho boosted their price target on shares of Churchill Downs from $146.00 to $155.00 and gave the stock an “outperform” rating in a report on Friday, April 24th. Weiss Ratings downgraded shares of Churchill Downs from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 4th. Finally, Jefferies Financial Group restated a “buy” rating on shares of Churchill Downs in a research report on Thursday, July 2nd. Nine equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Churchill Downs currently has a consensus rating of “Moderate Buy” and a consensus price target of $136.62.

Churchill Downs Price Performance

The company has a current ratio of 0.36, a quick ratio of 0.54 and a debt-to-equity ratio of 3.06. The business’s fifty day moving average is $86.81 and its 200 day moving average is $90.41. The company has a market cap of $5.88 billion, a P/E ratio of 14.46, a PEG ratio of 0.53 and a beta of 0.67.

Churchill Downs (NASDAQ:CHDN) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $3.45 earnings per share for the quarter, meeting the consensus estimate of $3.45. Churchill Downs had a return on equity of 42.16% and a net margin of 13.82%.The business had revenue of $980.00 million during the quarter, compared to analyst estimates of $977.38 million. During the same period in the prior year, the company earned $3.10 earnings per share. Churchill Downs’s revenue was up 4.9% compared to the same quarter last year. As a group, sell-side analysts anticipate that Churchill Downs, Incorporated will post 7.14 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in CHDN. Quadrant Capital Group LLC increased its holdings in Churchill Downs by 4.7% in the 3rd quarter. Quadrant Capital Group LLC now owns 2,619 shares of the company’s stock worth $254,000 after acquiring an additional 118 shares during the last quarter. Sanctuary Advisors LLC lifted its holdings in Churchill Downs by 0.5% during the first quarter. Sanctuary Advisors LLC now owns 27,600 shares of the company’s stock valued at $2,479,000 after purchasing an additional 125 shares during the last quarter. Nebula Research & Development LLC boosted its position in Churchill Downs by 4.8% during the second quarter. Nebula Research & Development LLC now owns 3,421 shares of the company’s stock worth $346,000 after purchasing an additional 158 shares during the period. CIBC Private Wealth Group LLC boosted its position in Churchill Downs by 7.2% during the fourth quarter. CIBC Private Wealth Group LLC now owns 2,501 shares of the company’s stock worth $285,000 after purchasing an additional 169 shares during the period. Finally, Coldstream Capital Management Inc. increased its stake in shares of Churchill Downs by 5.5% in the third quarter. Coldstream Capital Management Inc. now owns 3,376 shares of the company’s stock worth $327,000 after purchasing an additional 177 shares in the last quarter. Hedge funds and other institutional investors own 82.59% of the company’s stock.

About Churchill Downs

Churchill Downs Incorporated is a leading American entertainment and gaming company best known for operating the Churchill Downs racetrack in Louisville, Kentucky, home of the annual Kentucky Derby. Beyond its signature thoroughbred racing venue, the company manages a diversified portfolio of live racing facilities, casinos, and off-track betting operations. Its services encompass pari-mutuel wagering, historical horse racing machines, and online betting through its TwinSpires platform, reaching horse racing and sports betting enthusiasts nationwide.

In its live racing segment, Churchill Downs oversees a network of racetracks and racing festivals, offering year-round events in multiple states.