Churchill Downs (NASDAQ:CHDN) Share Price Breaks Above 200-Day Moving Average – Here’s Why

Churchill Downs, Incorporated (NASDAQ:CHDN) shares crossed above its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $88.33 and traded as high as $94.24. Churchill Downs shares last traded at $91.16, with a volume of 2,162,218 shares changing hands.

More Churchill Downs News

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

• Positive Sentiment: Third-quarter results exceeded expectations. Churchill Downs reported adjusted earnings of $1.23 per share, ahead of the approximately $1.13 consensus estimate, while revenue reached $696.0 million versus expectations of roughly $695.2 million. Revenue increased 1.9% year over year, and the earnings performance appears to have strengthened investor confidence in the company’s cash-flow outlook. Churchill Downs third-quarter earnings results
• Positive Sentiment: $750 million share repurchase authorized. The buyback could support earnings per share and provide demand for CHDN shares, particularly as management emphasizes cash generation. Churchill Downs $750 million buyback
• Positive Sentiment: Analysts raised their targets. Barclays increased its target from $132 to $133 and maintained an “overweight” rating, while Mizuho lifted its target from $125 to $126 and retained an “outperform” rating. Both imply substantial upside from the recent trading level. Barclays Churchill Downs rating Mizuho Churchill Downs rating
• Positive Sentiment: Dividend increased. Churchill Downs declared an annual dividend of $0.469 per share, up 7.1% from $0.438, payable January 5, 2027. The increase adds to the shareholder-return appeal, although the dividend yield remains modest. Churchill Downs dividend declaration
• Positive Sentiment: Technical momentum improved. CHDN shares broke above their 200-day moving average, a development that may attract momentum-oriented investors. Churchill Downs moves above 200-day moving average
• Neutral Sentiment: Churchill Downs appointed Michael Tucker as a Class II director. The board change is unlikely to materially affect near-term valuation. Michael Tucker board appointment
• Negative Sentiment: Stifel lowered its price target to $131, modestly tempering the otherwise bullish analyst tone, although it kept CHDN on its Select List. Stifel Churchill Downs price target

Analyst Ratings Changes

A number of research firms have weighed in on CHDN. JPMorgan Chase & Co. upped their target price on Churchill Downs from $118.00 to $120.00 and gave the stock an “overweight” rating in a report on Friday. Barclays raised their target price on Churchill Downs from $132.00 to $133.00 and gave the company an “overweight” rating in a research note on Friday. Citigroup reiterated a “market outperform” rating on shares of Churchill Downs in a research note on Tuesday, October 13th. Stifel Nicolaus set a $132.00 price target on shares of Churchill Downs and gave the stock a “buy” rating in a research note on Tuesday. Finally, Mizuho lifted their price target on shares of Churchill Downs from $125.00 to $126.00 and gave the company an “outperform” rating in a research report on Friday. Eleven research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, Churchill Downs currently has a consensus rating of “Moderate Buy” and a consensus price target of $126.70.

Churchill Downs Stock Performance

The stock has a market capitalization of $6.61 billion, a PE ratio of 14.73, a PEG ratio of 0.96 and a beta of 0.77. The business has a 50 day moving average price of $82.91 and a 200 day moving average price of $88.28. The company has a debt-to-equity ratio of 2.95, a current ratio of 0.32 and a quick ratio of 0.36.

Churchill Downs (NASDAQ:CHDN) last posted its quarterly earnings results on Wednesday, October 28th. The company reported $1.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.13 by $0.10. Churchill Downs had a return on equity of 39.90% and a net margin of 15.15%. The firm had revenue of $696.00 million during the quarter, compared to analyst estimates of $695.16 million. During the same quarter in the previous year, the firm earned $1.09 EPS. Churchill Downs’s quarterly revenue was up 1.9% compared to the same quarter last year. As a group, equities research analysts expect that Churchill Downs, Incorporated will post 6.98 earnings per share for the current year.

Churchill Downs Increases Dividend

The firm also recently declared an annual dividend, which will be paid on Tuesday, January 5th. Stockholders of record on Friday, December 4th will be issued a dividend of $0.4690 per share. The ex-dividend date of this dividend is Friday, December 4th. This is an increase from Churchill Downs’s previous annual dividend of $0.4380. This represents a dividend yield of 57.0%. Churchill Downs’s dividend payout ratio is currently 6.68%.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in CHDN. Kimelman & Baird LLC purchased a new stake in shares of Churchill Downs during the 2nd quarter valued at about $27,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Churchill Downs in the 2nd quarter valued at about $29,000. Root Financial Partners LLC grew its position in Churchill Downs by 1,173.1% in the first quarter. Root Financial Partners LLC now owns 331 shares of the company’s stock worth $30,000 after acquiring an additional 305 shares in the last quarter. Twin Tree Management LP purchased a new position in Churchill Downs in the second quarter worth about $36,000. Finally, NewEdge Advisors LLC purchased a new position in Churchill Downs in the first quarter worth about $50,000. 82.59% of the stock is owned by hedge funds and other institutional investors.

Churchill Downs Company Profile

Churchill Downs Incorporated (NASDAQ: CHDN) is a gaming, racing and entertainment company best known for operating Churchill Downs Racetrack in Louisville, Kentucky, the home of the Kentucky Derby. The company traces its history to the opening of Churchill Downs in 1875 and has expanded its operations beyond traditional Thoroughbred racing.

Its business activities include live and historical horse racing, pari-mutuel wagering, casino gaming, video lottery and related entertainment offerings.