Why Churchill Downs (CHDN) Stock Is Up Today
Shares of Churchill Downs (CHDN) rose 3.7% after Stifel reiterated its Buy rating and maintained a price target of $133. Citizens also restated its Market Outperform rating with a target of $142. Despite the initial surge, shares cooled to $88.72, down 2% from the previous close. The stock has seen limited volatility, with only four moves over 5% in the past year. Year-to-date, CHDN is down 32.6% and trading 39.8% below its 52-week high of $147.45.
What Happened?
Shares of racing, gaming, and entertainment company Churchill Downs jumped 3.7% in the afternoon session after investment firm Stifel reiterated its Buy rating on the stock ahead of the company's third-quarter earnings report. Stifel kept its price target at $133.00. The positive sentiment was echoed by another firm, Citizens, which also restated its Market Outperform rating on Churchill Downs, holding its price target at $142.00. Both firms expressed confidence before the company was scheduled to release its financial results. The reiterations signaled continued analyst belief in the company's performance leading up to the earnings announcement.
After the initial pop the shares cooled down to $88.72, down 2% from previous close.
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What Is The Market Telling Us
Churchill Downs’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock dropped 14.9% on the news that the company reported mixed first quarter 2025 results which included an EPS beat but revenue and EBITDA were inline. Revenue was up 9%, with both gaming and racing up around 10%. But TwinSpires, where customers place horse bets online, saw less action, which softened the overall results. Management maintained a steady tone, reaffirming confidence in its core businesses but pausing certain capital projects due to the economic backdrop. Zooming out, we think this was a decent quarter featuring some areas of strength but also some blemishes. The areas below expectations seem to be driving the move.
Churchill Downs is down 32.6% since the beginning of the year, and at $88.72 per share, it is trading 39.8% below its 52-week high of $147.45 from November 2024. Investors who bought $1,000 worth of Churchill Downs’s shares 5 years ago would now be looking at an investment worth $1,048.
