Churchill Downs (NASDAQ:CHDN) Stock Price Down 10.7% – Here’s Why

Churchill Downs, Incorporated (NASDAQ:CHDN)’s share price dropped 10.7% during trading on Thursday . The company traded as low as $86.85 and last traded at $85.8910. Approximately 965,124 shares were traded during mid-day trading, an increase of 16% from the average daily volume of 830,300 shares. The stock had previously closed at $96.14.

Key Churchill Downs News

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

• Positive Sentiment: Q4 beat on both EPS and revenue — CHDN reported $0.97 EPS vs. ~$0.85 expected and revenue of $665.9M vs. $658M expected; revenue rose ~6.7% year-over-year, showing underlying demand. Churchill Downs posts Q4 earnings and revenue beat
• Positive Sentiment: Historical racing machines (HRM) and sports betting were cited as main growth drivers that boosted results and margins — these revenue streams are supporting near-term top-line growth. Churchill Downs gets a boost from both historical racing and sports betting
• Positive Sentiment: New property opening: Churchill Downs opened Marshall Yards Racing & Gaming (a $40–45M investment) — incremental property openings expand the footprint for HRM/sports-betting revenue. Churchill Downs Incorporated Opens Marshall Yards Racing & Gaming
• Neutral Sentiment: Analyst and media coverage largely highlight the beat and the HRM story but suggest monitoring key metrics and guidance from the call for forward clarity. Churchill Downs (CHDN) Reports Q4 Earnings: What Key Metrics Have to Say
• Neutral Sentiment: Company released its full Q4 and FY filings and hosted a conference call (transcript/press release available) — investors should review management’s commentary on margins, capex and cadence of HRM rollouts. Churchill Downs Incorporated Reports 2025 Fourth Quarter and Full Year Results
• Negative Sentiment: Balance-sheet and liquidity remain potential investor concerns: noted debt-to-equity and low current/quick ratios increase sensitivity to slower growth or higher interest costs. See the earnings release for balance-sheet detail. Churchill Downs Incorporated Reports 2025 Fourth Quarter and Full Year Results
• Negative Sentiment: Despite the beat, the stock is trading lower — likely reflecting investor focus on leverage, cash flow conversion, and how quickly new HRM locations and gaming openings will scale profits versus upfront investment and costs. Churchill Downs’s (NASDAQ:CHDN) Q4 CY2025 Sales Top Estimates

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the stock. Wells Fargo & Company reaffirmed an “overweight” rating and issued a $125.00 price target (up from $115.00) on shares of Churchill Downs in a report on Monday, January 5th. Citigroup restated an “outperform” rating on shares of Churchill Downs in a research note on Wednesday, January 14th. Jefferies Financial Group reiterated a “buy” rating on shares of Churchill Downs in a research report on Wednesday, December 24th. Finally, Citizens Jmp raised their price target on Churchill Downs from $142.00 to $146.00 and gave the stock a “market outperform” rating in a report on Wednesday, January 14th. Eleven equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $135.10.

Churchill Downs Stock Performance

The company has a debt-to-equity ratio of 4.87, a current ratio of 0.57 and a quick ratio of 0.57. The stock has a fifty day moving average price of $103.11 and a two-hundred day moving average price of $101.95. The company has a market cap of $6.12 billion, a P/E ratio of 15.99, a PEG ratio of 1.39 and a beta of 0.67.

Churchill Downs (NASDAQ:CHDN) last posted its earnings results on Wednesday, February 25th. The company reported $0.97 EPS for the quarter, beating the consensus estimate of $0.85 by $0.12. Churchill Downs had a return on equity of 42.54% and a net margin of 13.99%.The firm had revenue of $665.90 million for the quarter, compared to analysts’ expectations of $658.01 million. During the same period last year, the firm earned $0.92 EPS. The firm’s revenue was up 6.7% compared to the same quarter last year. On average, equities analysts forecast that Churchill Downs, Incorporated will post 6.92 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Churchill Downs

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Measured Wealth Private Client Group LLC bought a new position in Churchill Downs during the third quarter valued at about $25,000. First Horizon Corp acquired a new stake in Churchill Downs in the 3rd quarter valued at about $26,000. Quent Capital LLC bought a new position in shares of Churchill Downs during the 3rd quarter valued at about $27,000. Geneos Wealth Management Inc. grew its stake in shares of Churchill Downs by 1,364.7% in the 1st quarter. Geneos Wealth Management Inc. now owns 249 shares of the company’s stock worth $28,000 after purchasing an additional 232 shares during the last quarter. Finally, Farther Finance Advisors LLC raised its holdings in shares of Churchill Downs by 1,670.6% in the 3rd quarter. Farther Finance Advisors LLC now owns 301 shares of the company’s stock worth $29,000 after purchasing an additional 284 shares in the last quarter. Institutional investors own 82.59% of the company’s stock.

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.