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

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

Churchill Downs Price Performance

Shares of Churchill Downs stock traded up $1.39 during midday trading on Wednesday, hitting $111.78. 40,619 shares of the company traded hands, compared to its average volume of 466,905. The stock has a market cap of $8.22 billion, a price-to-earnings ratio of 19.67, a PEG ratio of 2.95 and a beta of 0.93. The company has a debt-to-equity ratio of 4.47, a quick ratio of 0.55 and a current ratio of 0.57. The firm’s fifty day moving average price is $120.14 and its 200-day moving average price is $131.68. Churchill Downs has a 12 month low of $105.18 and a 12 month high of $150.21.

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

Churchill Downs Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, April 15th. Stockholders of record on Monday, March 31st will be paid 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 7.04%.

Churchill Downs announced that its Board of Directors has authorized a stock repurchase program on Wednesday, March 12th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the company to reacquire up to 6.4% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

CHDN has been the subject of a number of analyst reports. JMP Securities reiterated a “market outperform” rating and issued a $166.00 price target on shares of Churchill Downs in a research report on Thursday, January 16th. StockNews.com upgraded Churchill Downs from a “sell” rating to a “hold” rating in a research report on Wednesday. Mizuho decreased their price target on Churchill Downs from $151.00 to $148.00 and set an “outperform” rating on the stock in a research report on Wednesday, February 19th. Stifel Nicolaus cut their price objective on shares of Churchill Downs from $164.00 to $161.00 and set a “buy” rating for the company in a research report on Friday, February 21st. Finally, Wells Fargo & Company decreased their target price 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. One investment analyst has rated the stock with a hold rating and eight have given a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $159.38.

Institutional Trading of Churchill Downs

A number of institutional investors and hedge funds have recently bought and sold shares of CHDN. Truist Financial Corp increased its stake in shares of Churchill Downs by 22.1% in the fourth quarter. Truist Financial Corp now owns 29,637 shares of the company’s stock valued at $3,958,000 after buying an additional 5,372 shares during the period. Charles Schwab Investment Management Inc. boosted its holdings in Churchill Downs by 1.7% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 605,355 shares of the company’s stock valued at $80,839,000 after acquiring an additional 10,153 shares during the last quarter. Westfield Capital Management Co. LP increased its position in Churchill Downs by 100.0% during the 3rd quarter. Westfield Capital Management Co. LP now owns 763,561 shares of the company’s stock valued at $103,241,000 after purchasing an additional 381,754 shares during the period. Atria Investments Inc raised its holdings in Churchill Downs by 3.9% during the 3rd quarter. Atria Investments Inc now owns 6,004 shares of the company’s stock worth $812,000 after purchasing an additional 224 shares during the last quarter. Finally, JPMorgan Chase & Co. lifted its position in shares of Churchill Downs by 7.1% in the 3rd quarter. JPMorgan Chase & Co. now owns 183,594 shares of the company’s stock worth $24,824,000 after purchasing an additional 12,226 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.