Churchill Downs (NASDAQ:CHDN) Releases Quarterly Earnings Results, Meets Estimates

Churchill Downs (NASDAQ:CHDN) released 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. The business had revenue of $980.00 million for the quarter, compared to the consensus estimate of $978.28 million. Churchill Downs had a net margin of 13.21% and a return on equity of 43.50%. Churchill Downs’s revenue for the quarter was up 4.9% on a year-over-year basis. During the same quarter last year, the firm earned $3.10 EPS.

Churchill Downs Stock Performance

Shares of NASDAQ CHDN traded down $0.69 during trading hours on Wednesday, hitting $88.53. 1,408,473 shares of the stock were exchanged, compared to its average volume of 956,536. The company has a debt-to-equity ratio of 4.44, a current ratio of 0.54 and a quick ratio of 0.54. The company’s 50 day moving average is $86.83 and its 200 day moving average is $90.80. The firm has a market capitalization of $6.17 billion, a P/E ratio of 16.39, a P/E/G ratio of 0.57 and a beta of 0.67. Churchill Downs has a one year low of $80.24 and a one year high of $118.35.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. Sivia Capital Partners LLC bought a new position in shares of Churchill Downs in the second quarter worth about $229,000. Coldstream Capital Management Inc. lifted its position in shares of Churchill Downs by 5.5% during the 3rd quarter. Coldstream Capital Management Inc. now owns 3,376 shares of the company’s stock worth $327,000 after purchasing an additional 177 shares during the last quarter. CIBC Private Wealth Group LLC boosted its stake in Churchill Downs by 7.2% during the 4th quarter. CIBC Private Wealth Group LLC now owns 2,501 shares of the company’s stock valued at $285,000 after purchasing an additional 169 shares during the period. VARCOV Co. bought a new stake in Churchill Downs during the 4th quarter valued at approximately $277,000. Finally, Quadrant Capital Group LLC grew 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 valued at $254,000 after buying an additional 118 shares during the last quarter. Institutional investors own 82.59% of the company’s stock.

Key Churchill Downs News

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

Wall Street Analyst Weigh In

CHDN has been the subject of a number of recent research reports. Citizens Jmp upped their price objective on shares of Churchill Downs from $146.00 to $149.00 and gave the stock a “market outperform” rating in a report on Friday, April 24th. Wells Fargo & Company cut their target price on Churchill Downs from $132.00 to $120.00 and set an “overweight” rating on the stock in a report on Tuesday, July 14th. Citigroup reaffirmed an “outperform” rating on shares of Churchill Downs in a research report on Friday, April 24th. Mizuho upped their price target on Churchill Downs from $146.00 to $155.00 and gave the stock an “outperform” rating in a research note on Friday, April 24th. Finally, Weiss Ratings lowered Churchill Downs from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 4th. Nine research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat, Churchill Downs presently has a consensus rating of “Moderate Buy” and an average price target of $138.50.

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.