Churchill Downs (NASDAQ:CHDN) Sets New 12-Month Low – Should You Sell?

Churchill Downs, Incorporated (NASDAQ:CHDN) reached a new 52-week low on Friday . The stock traded as low as $79.40 and last traded at $82.69, with a volume of 3738863 shares. The stock had previously closed at $88.53.

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 the company full ownership of the pari-mutuel wagering technology and services provider. The deal could strengthen CDI’s racing-technology platform and provide additional long-term growth opportunities. United Tote acquisition announcement
• Positive Sentiment: Management outlined approximately $285 million of Victory Run development ahead of the 2028 Kentucky Derby, alongside an expanded Homestretch Club and upgraded infield seating. These projects are intended to increase premium hospitality capacity and future racetrack revenue. Victory Run buildout and casino sales
• Neutral Sentiment: CDI is reviewing strategic alternatives for nine regional casino properties, including potential sales. Divestitures could generate cash and sharpen the company’s portfolio, but the eventual proceeds, timing and impact on recurring earnings remain uncertain. Strategic gaming-asset review
• Negative Sentiment: Second-quarter adjusted earnings were $3.45 per share, matching some reported estimates but below the Zacks consensus of $3.51. Revenue rose 4.9% year over year to $980 million and exceeded the roughly $977 million consensus, but the modest revenue beat did not offset concerns that earnings performance was insufficient relative to investor expectations. Q2 earnings estimate comparison
• Negative Sentiment: The sharp selloff and unusually heavy trading indicate that investors reacted negatively to the earnings call, likely reflecting concerns about margins, forward expectations or the sustainability of recent Derby-driven strength. The stock remains below its 50-day and 200-day moving averages, adding technical pressure.

Analyst Upgrades and Downgrades

CHDN has been the topic of several recent analyst reports. Mizuho boosted their target price on Churchill Downs from $146.00 to $155.00 and gave the stock an “outperform” rating in a report on Friday, April 24th. Citizens Jmp raised their price target on Churchill Downs from $146.00 to $149.00 and gave the company a “market outperform” rating in a report on Friday, April 24th. Truist Financial set a $145.00 price objective on Churchill Downs in a research report on Friday, June 12th. Weiss Ratings lowered Churchill Downs from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, May 4th. Finally, Citigroup restated an “outperform” rating on shares of Churchill Downs in a research note on Friday, April 24th. Nine investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $138.50.

Churchill Downs Price Performance

The company has a market capitalization of $5.76 billion, a price-to-earnings ratio of 14.18, a price-to-earnings-growth ratio of 0.57 and a beta of 0.67. The company has a 50-day moving average price of $86.83 and a 200-day moving average price of $90.46. The company has a debt-to-equity ratio of 4.44, a quick ratio of 0.54 and a current ratio of 0.54.

Churchill Downs (NASDAQ:CHDN) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $3.45 earnings per share for the quarter, meeting analysts’ consensus estimates of $3.45. Churchill Downs had a net margin of 13.82% and a return on equity of 45.12%. The business had revenue of $980.00 million for the quarter, compared to the consensus estimate of $977.38 million. During the same period last year, the company posted $3.10 EPS. Churchill Downs’s revenue for the quarter was up 4.9% on a year-over-year basis. On average, equities research analysts expect that Churchill Downs, Incorporated will post 7.14 EPS for the current fiscal year.

Hedge Funds Weigh In On Churchill Downs

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. AQR Capital Management LLC raised its stake in Churchill Downs by 29.8% during the 1st quarter. AQR Capital Management LLC now owns 3,415 shares of the company’s stock worth $373,000 after buying an additional 784 shares during the period. Goldman Sachs Group Inc. grew its stake in Churchill Downs by 33.5% in the first quarter. Goldman Sachs Group Inc. now owns 483,252 shares of the company’s stock valued at $53,675,000 after acquiring an additional 121,204 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Churchill Downs by 7.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 225,800 shares of the company’s stock valued at $25,080,000 after acquiring an additional 15,161 shares during the period. Geneos Wealth Management Inc. increased its holdings in shares of Churchill Downs by 1,364.7% in the first quarter. Geneos Wealth Management Inc. now owns 249 shares of the company’s stock worth $28,000 after acquiring an additional 232 shares in the last quarter. Finally, Sivia Capital Partners LLC bought a new stake in shares of Churchill Downs in the second quarter worth about $229,000. 82.59% of the stock is owned by institutional investors.

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.