American Century Companies Inc., a renowned investment management firm, recently announced a decrease in its stake in Churchill Downs Incorporated. According to its disclosure with the Securities & Exchange Commission, American Century Companies lowered its stake by 4.9% during the first quarter of this year. The company sold 6,603 shares, leaving it with 127,695 shares of Churchill Downs’ stock. Based on the value of these shares at the end of the quarter, American Century Companies Inc. owned about 0.34% of Churchill Downs, totaling $32,768,000.
These financial moves by American Century Companies Inc. indicate a shift in their investment strategy regarding Churchill Downs Incorporated. While they still maintain a significant stake in the company, reducing their shareholdings suggests that they are reassessing their position and potential future profitability.
Churchill Downs (NASDAQ:CHDN) recently disclosed its quarterly earnings results on July 26th. The company reported lower than expected earnings per share for the quarter – $2.24 compared to the consensus estimate of $2.50 per share. Additionally, the company’s revenue for the quarter stood at $768.50 million, slightly below analysts’ projected revenue of $792.70 million.
Despite missing estimates, Churchill Downs demonstrated a notable increase in revenue compared to the same quarter last year – a growth rate of 31.9%. This positive performance can be attributed to various factors within their operations.
Churchill Downs Incorporated primarily operates as a racing, online wagering, and gaming entertainment company in the United States through its Live and Historical Racing, TwinSpires, and Gaming segments. The company manages pari-mutuel gaming entertainment venues and owns TwinSpires – an online platform for horse racing wagering as well as sports and iGaming betting services.
Moreover, Churchill Downs also operates retail sportsbooks and engages in casino gaming activities throughout their various establishments across the nation.
Analyzing the financial and operational aspects of Churchill Downs, industry analysts predict that the company will post earnings per share (EPS) of 5.43 for the current year. These forecasts rely on various factors, including market conditions and the management’s ability to capitalize on growth opportunities within the industry.
American Century Companies Inc.’s recent decision to reduce its stake in Churchill Downs Incorporated showcases the evolving nature of investment strategies. Investors like American Century Companies constantly evaluate their portfolios and make financial decisions based on various factors, such as financial performance, future projections, industry trends, and potential risks.
As the year progresses, it will be interesting to observe how Churchill Downs responds to its financial results and maneuvers itself within the racing, online wagering, and gaming entertainment sectors – all while keeping an eye on American Century Companies Inc.’s proportionate ownership in the company.
Institutional Investors Adjust Positions in Churchill Downs Incorporated: A Look at Shareholder Changes and Analyst Recommendations
August 29, 2023 – Churchill Downs Incorporated (CHDN), a leading company in the horse racing industry, has recently seen changes in its shareholder positions. According to reports, various hedge funds and institutional investors have made adjustments to their holdings in the company.
Vestor Capital LLC, for instance, purchased a new position in Churchill Downs during the first quarter of this year. The shares acquired by Vestor Capital were valued at approximately $43,000. Another investor, CI Investments Inc., increased its holdings in Churchill Downs by 64.3% during the fourth quarter. This translated to owning 230 shares of the company’s stock worth $49,000 after purchasing an additional 90 shares.
Signaturefd LLC also saw its holdings grow significantly. The firm now owns 196 shares of Churchill Downs stock worth $50,000 after acquiring an additional 67 shares during the last quarter. Similarly, Harvest Fund Management Co. Ltd witnessed tremendous growth in its holdings by an astonishing 11,050.0%. Currently holding 223 shares worth $57,000, Harvest Fund Management bought an additional 221 shares.
Lastly, Rockefeller Capital Management L.P. experienced a substantial increase in its holdings as well. Having grown by 174.8% during the fourth quarter, Rockefeller Capital Management now owns 283 shares of Churchill Downs stock worth $59,000 after acquiring an additional 180 shares.
When considering all these changes made by hedge funds and other institutional investors combined it becomes evident that they collectively own a significant portion of the company’s stock—around 72.88%.
On Tuesday morning, CHDN opened at $125.71 per share on the stock market—reflecting a relatively stable value for the company’s stock price relative to previous days. The fifty-day moving average was recorded at $128.02 while the two-hundred day moving average stood at $131.30.
Churchill Downs has a sound financial position with a market capitalization of $9.41 billion. With a price-to-earnings ratio of 26.95, CHDN has established itself as a lucrative investment option for many individuals and institutions looking to diversify their portfolios.
However, it is worth noting that Churchill Downs Incorporated carries a debt-to-equity ratio of 5.33—a factor that should be carefully considered by potential investors. The company’s quick ratio and current ratio both stand at 0.90, indicating the organization’s short-term liquidity strength.
Various research firms have analyzed Churchill Downs’ performance and issued reports on the company recently. JMP Securities reaffirmed its “market outperform” rating on CHDN shares and set an ambitious price target of $155.00—an endorsement that adds weight to the company’s growth potential.
However, it is important to acknowledge that differing opinions exist regarding CHDN’s stock performance. For instance, StockNews.com downgraded Churchill Downs from a “hold” rating to a “sell” rating in a recent research note—a viewpoint that investors should consider alongside other available information.
Bank of America also reviewed the company’s prospects and cut its price target on CHDN from $155.00 to $142.00 while maintaining its “buy” rating.
Overall, according to Bloomberg.com, analysts have given CHDN shares a consensus rating of “Moderate Buy” and assigned them with an average price target of $142.58—indicating cautious optimism about the stock’s future performance.
While it is uncertain how these changes in shareholder positions will impact Churchill Downs Incorporated in the long run, it is clear that various investors have recognized the potential in investing in this reputable horse racing company. As always, investors are advised to conduct thorough research before making any decisions related to their investments.