Churchill Downs (NASDAQ:CHDN) Announces Earnings Results

Churchill Downs (NASDAQ:CHDN) issued its quarterly earnings results on Wednesday. The company reported $3.45 earnings per share for the quarter, meeting analysts’ consensus estimates of $3.45, Zacks reports. Churchill Downs had a net margin of 13.21% and a return on equity of 43.50%. The firm had revenue of $980.00 million during the quarter, compared to the consensus estimate of $978.28 million. During the same period in the prior year, the firm earned $3.10 EPS. The business’s revenue was up 4.9% on a year-over-year basis.

Churchill Downs Price Performance

Shares of NASDAQ:CHDN traded down $0.69 during midday trading on Wednesday, reaching $88.53. 1,408,473 shares of the company’s stock were exchanged, compared to its average volume of 956,536. The company has a debt-to-equity ratio of 4.44, a quick ratio of 0.54 and a current ratio of 0.54. The company’s 50 day simple moving average is $86.83 and its two-hundred day simple moving average is $90.80. Churchill Downs has a 12 month low of $80.24 and a 12 month high of $118.35. The firm has a market capitalization of $6.17 billion, a PE ratio of 16.39, a price-to-earnings-growth ratio of 0.57 and a beta of 0.67.

Churchill Downs News Roundup

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

• Positive Sentiment: Churchill Downs agreed to acquire NYRA’s 49% stake in United Tote, giving it full ownership of the pari-mutuel wagering technology and services business. The transaction could simplify ownership and provide greater control over United Tote’s future growth, although financial terms were not disclosed. Churchill Downs Announces Agreement to Acquire United Tote Stake
• Positive Sentiment: Management is reviewing potential strategic alternatives for its gaming assets, including a possible sale. A transaction could unlock value and sharpen Churchill Downs’ focus, though the review does not guarantee that any sale will occur. Churchill Downs Explores Strategic Sale of Gaming Assets
• Neutral Sentiment: Second-quarter adjusted earnings were $3.45 per share, matching analyst expectations, while revenue of $980 million was modestly above the $978.28 million consensus. The results indicate solid operating performance but provided little earnings surprise to drive the stock higher. Churchill Downs Reports 2026 Second Quarter Results
• Neutral Sentiment: Brokerages cited a consensus price target of $138.50, substantially above the recent trading level, suggesting analysts remain bullish on the company’s longer-term prospects. Churchill Downs Receives Consensus Price Target
• Negative Sentiment: Churchill Downs is advancing major racetrack projects for 2027 and 2028, including Victory Run, an expanded Homestretch Club and upgraded infield seating. The investments may support future attendance and revenue, but near-term construction spending adds to capital requirements for a highly leveraged company. Churchill Downs Announces Racetrack Capital Projects

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in CHDN. Measured Wealth Private Client Group LLC bought a new position in Churchill Downs during the third quarter worth about $25,000. Geneos Wealth Management Inc. boosted its holdings in Churchill Downs by 1,364.7% during the first quarter. Geneos Wealth Management Inc. now owns 249 shares of the company’s stock valued at $28,000 after purchasing an additional 232 shares in the last quarter. Parkside Financial Bank & Trust grew its stake in shares of Churchill Downs by 293.8% in the 4th quarter. Parkside Financial Bank & Trust now owns 256 shares of the company’s stock valued at $29,000 after purchasing an additional 191 shares during the period. Los Angeles Capital Management LLC bought a new stake in shares of Churchill Downs in the 4th quarter valued at approximately $38,000. Finally, Parallel Advisors LLC raised its holdings in shares of Churchill Downs by 167.7% in the 4th quarter. Parallel Advisors LLC now owns 415 shares of the company’s stock worth $47,000 after buying an additional 260 shares in the last quarter. Institutional investors and hedge funds own 82.59% of the company’s stock.

Analysts Set New Price Targets

Several equities analysts recently issued reports on CHDN shares. Jefferies Financial Group restated a “buy” rating on shares of Churchill Downs in a research note on Thursday, July 2nd. Wells Fargo & Company reduced their price objective on Churchill Downs from $132.00 to $120.00 and set an “overweight” rating for the company in a research report on Tuesday, July 14th. Mizuho lifted their price objective on Churchill Downs from $146.00 to $155.00 and gave the stock an “outperform” rating in a report on Friday, April 24th. Citigroup restated an “outperform” rating on shares of Churchill Downs in a research report on Friday, April 24th. Finally, Weiss Ratings lowered Churchill Downs from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, May 4th. Nine equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $138.50.

Churchill Downs Company Profile

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.