Traders Purchase High Volume of Put Options on Churchill Downs (NASDAQ:CHDN)

Churchill Downs, Incorporated (NASDAQ:CHDN) saw some unusual options trading on Tuesday. Investors acquired 8,621 put options on the company. This is an increase of approximately 611% compared to the typical daily volume of 1,213 put options.

Wall Street Analysts Forecast Growth

CHDN has been the subject of a number of analyst reports. Mizuho increased their target price on Churchill Downs from $155.00 to $157.00 and gave the stock an “outperform” rating in a research note on Monday, August 3rd. Susquehanna upped their price objective on Churchill Downs from $121.00 to $124.00 and gave the stock a “positive” rating in a report on Friday, July 31st. Wolfe Research began coverage on Churchill Downs in a report on Wednesday, September 2nd. They set an “outperform” rating and a $119.00 price objective on the stock. Citigroup reiterated an “outperform” rating on shares of Churchill Downs in a research report on Friday, July 31st. Finally, Weiss Ratings raised Churchill Downs from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, September 2nd. Ten analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $134.89.

Churchill Downs Price Performance

CHDN traded up $0.63 on Tuesday, hitting $76.35. 499,878 shares of the company were exchanged, compared to its average volume of 986,749. Churchill Downs has a fifty-two week low of $74.92 and a fifty-two week high of $118.35. The company has a debt-to-equity ratio of 3.06, a quick ratio of 0.36 and a current ratio of 0.36. The firm has a market capitalization of $5.32 billion, a P/E ratio of 13.12, a price-to-earnings-growth ratio of 0.76 and a beta of 0.67. The business’s fifty day moving average is $85.89 and its 200 day moving average is $87.49.

Churchill Downs (NASDAQ:CHDN) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $3.45 EPS for the quarter, hitting the consensus estimate of $3.45. The business had revenue of $980.00 million for the quarter, compared to analyst estimates of $977.38 million. Churchill Downs had a return on equity of 42.16% and a net margin of 13.82%.The company’s quarterly revenue was up 4.9% on a year-over-year basis. During the same quarter in the previous year, the company earned $3.10 EPS. As a group, sell-side analysts anticipate that Churchill Downs will post 7.14 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Tidal Investments LLC grew its stake in Churchill Downs by 43.8% in the 2nd quarter. Tidal Investments LLC now owns 226,804 shares of the company’s stock valued at $20,331,000 after acquiring an additional 69,098 shares during the last quarter. Engineers Gate Manager LP lifted its holdings in shares of Churchill Downs by 118.8% in the second quarter. Engineers Gate Manager LP now owns 54,890 shares of the company’s stock valued at $4,920,000 after purchasing an additional 29,807 shares in the last quarter. Integrated Wealth Concepts LLC grew its position in shares of Churchill Downs by 13.5% in the second quarter. Integrated Wealth Concepts LLC now owns 4,948 shares of the company’s stock valued at $444,000 after purchasing an additional 588 shares during the last quarter. Allworth Financial LP increased its stake in shares of Churchill Downs by 5.5% during the 2nd quarter. Allworth Financial LP now owns 9,102 shares of the company’s stock worth $816,000 after purchasing an additional 476 shares in the last quarter. Finally, Nykredit A S acquired a new position in shares of Churchill Downs during the 2nd quarter worth approximately $240,000. Institutional investors and hedge funds own 82.59% of the company’s stock.

About Churchill Downs

Churchill Downs Incorporated is a gaming, entertainment and racing company headquartered in Louisville, Kentucky. The company owns and operates Churchill Downs Racetrack, home of the Kentucky Derby, as well as other thoroughbred racing venues, casinos, racinos and historical horse racing facilities.

Its operations include live and historical horse racing, casino gaming, video lottery and other gaming activities, hospitality, dining and entertainment. Through its TwinSpires business, Churchill Downs also provides online horse-racing wagering and related digital betting services in jurisdictions where such activities are permitted.

Founded in 1875, Churchill Downs has expanded from its namesake racetrack into a diversified gaming and entertainment company.