Churchill Downs (NASDAQ:CHDN) Trading Down 9.4% – Here’s Why

Posted by Brenda Bartman on Jul 30th, 2026

Shares of Churchill Downs, Incorporated (NASDAQ:CHDN – Get Free Report) traded down 9.4% on Thursday . The stock traded as low as $80.64 and last traded at $80.1770. 1,397,085 shares traded hands during mid-day trading, an increase of 46% from the average session volume of 959,434 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, which would give it full ownership of the pari-mutuel wagering technology and services business. The transaction could provide greater operating control and potential long-term synergies. United Tote acquisition announcement
Positive Sentiment: Management is reviewing strategic alternatives for its gaming assets, including a potential sale. A divestiture could unlock value, reduce leverage and allow Churchill Downs to focus on higher-priority businesses, although no transaction has been announced. Strategic review of gaming assets
Positive Sentiment: Second-quarter revenue rose 4.9% year over year to $980 million, slightly exceeding the approximately $977.4 million analyst estimate, while earnings increased from $3.10 to $3.45 per share. Second-quarter results
Neutral Sentiment: Churchill Downs announced continued investment in racetrack upgrades, including the Victory Run project, an expanded Homestretch Club and improved infield seating scheduled for completion in 2027 and 2028. The projects may support future revenue but require substantial capital spending. Churchill Downs capital projects
Negative Sentiment: Results missed the more conservative Zacks consensus of $3.51 per share, despite meeting other consensus estimates. The earnings shortfall likely contributed to investor selling and overshadowed the year-over-year improvement. Q2 earnings estimate miss

Analysts Set New Price Targets

Several equities research analysts recently commented on CHDN shares. Citigroup reaffirmed an “outperform” rating on shares of Churchill Downs in a research report on Friday, April 24th. Weiss Ratings lowered Churchill Downs from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, May 4th. Jefferies Financial Group restated a “buy” rating on shares of Churchill Downs in a research note on Thursday, July 2nd. Truist Financial set a $145.00 price target on shares of Churchill Downs in a report on Friday, June 12th. Finally, Wells Fargo & Company reduced their price target on shares of Churchill Downs from $132.00 to $120.00 and set an “overweight” rating for the company in a research note on Tuesday, July 14th. Nine analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $138.50.

Read Our Latest Analysis on CHDN

Churchill Downs Stock Down 9.3%

The company has a market cap of $5.60 billion, a P/E ratio of 14.85, a price-to-earnings-growth ratio of 0.58 and a beta of 0.67. The company has a quick ratio of 0.54, a current ratio of 0.54 and a debt-to-equity ratio of 4.44. The company has a fifty day moving average of $86.88 and a 200 day moving average of $90.64.

Churchill Downs (NASDAQ:CHDN – Get Free Report) last posted its earnings results on Wednesday, July 29th. The company reported $3.45 earnings per share for the quarter, meeting analysts’ consensus estimates of $3.45. The company had revenue of $980.00 million for the quarter, compared to the consensus estimate of $977.38 million. Churchill Downs had a return on equity of 43.50% and a net margin of 13.21%.Churchill Downs’s revenue was up 4.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $3.10 earnings per share. On average, research analysts anticipate that Churchill Downs, Incorporated will post 7.14 earnings per share for the current fiscal year.

Institutional Trading of Churchill Downs

Large investors have recently added to or reduced their stakes in the business. Measured Wealth Private Client Group LLC purchased a new position in shares of Churchill Downs during the 3rd quarter worth $25,000. Geneos Wealth Management Inc. increased 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 in the last quarter. Parkside Financial Bank & Trust raised its holdings in Churchill Downs by 293.8% in the 4th quarter. Parkside Financial Bank & Trust now owns 256 shares of the company’s stock worth $29,000 after purchasing an additional 191 shares during the period. Root Financial Partners LLC raised its holdings in Churchill Downs by 1,173.1% in the 1st quarter. Root Financial Partners LLC now owns 331 shares of the company’s stock worth $30,000 after purchasing an additional 305 shares during the period. Finally, Los Angeles Capital Management LLC purchased a new position in Churchill Downs during the fourth quarter valued at $38,000. 82.59% of the stock is currently owned by institutional investors.

About Churchill Downs

(Get Free Report)

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.