August 14, 2023 – Spire Wealth Management Purchases Stake in Churchill Downs Incorporated
Spire Wealth Management, a prominent financial management firm, recently revealed its acquisition of a new position in Churchill Downs Incorporated (NASDAQ:CHDN) during the first quarter of this year. The company disclosed this information in its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased an impressive 25,523 shares of Churchill Downs’ stock, with an estimated value of approximately $6,561,000. As of the filing date, Spire Wealth Management owned 0.07% of the total stake in Churchill Downs.
Churchill Downs (NASDAQ:CHDN) is renowned for its involvement in racing, online wagering, and gaming entertainment throughout the United States. The company operates under three distinct segments: Live and Historical Racing, TwinSpires, and Gaming.
This purchase by Spire Wealth Management coincides with Churchill Downs’ recent earnings release on July 26th. In this disclosure, the company reported earnings per share (EPS) of $2.24 for the quarter. Although this figure fell short of Wall Street’s consensus estimate by ($0.26), it represents a substantial increase compared to the previous year’s corresponding quarter when Churchill Downs reported $1.95 earnings per share.
Even though market analysts had anticipated higher revenue figures for the quarter at $792.70 million, Churchill Downs recorded $768.50 million in revenue for Q2 2023. This still demonstrates a remarkable 31.9% increase in revenue on a year-over-year basis.
Despite missing expectations for this particular quarter, industry insiders remain optimistic about Churchill Downs’ future growth potential. Looking ahead to their current fiscal year projections, sell-side analysts predict that they will post EPS of 5.86.
The strategic acquisition made by Spire Wealth Management solidifies their confidence in Churchill Down’s long-term prospects. With its expansive portfolio encompassing sports betting, casino gaming, and horse racing, Churchill Downs is well-positioned to benefit from the ever-growing popularity of these industries.
Churchill Downs’ TwinSpires platform has emerged as a prominent player in the online wagering industry, granting bettors convenient access to horse racing, sports betting, and iGaming. Additionally, they operate retail sportsbooks and pari-mutuel gaming entertainment venues across the United States.
As the global gaming landscape continues to evolve rapidly, diversifying their revenue streams allows Churchill Downs to adapt to changing market dynamics. Consequently, this positions them for sustained success in an increasingly competitive industry.
In conclusion, Spire Wealth Management’s recent purchase of a significant stake in Churchill Downs Incorporated showcases their confidence in the company’s future prospects. Despite falling short of earnings estimates for Q2 2023, Churchill Downs’ impressive revenue growth year-over-year and their multi-faceted operations bode well for long-term success. As industries such as online wagering and gaming continue to gain traction, Churchill Downs is primed to capitalize on these emerging trends. Investors will undoubtedly keep a close eye on the company’s performance moving forward as it navigates the ever-changing landscape of today’s entertainment and gambling sectors.
[bs_slider_forecast ticker=”CHDN”]
Institutional Investors Boost Investments in Churchill Downs, Implying Confidence in Horse Racing Giant’s Future
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”CHDN” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]Churchill Downs Incorporated (NASDAQ: CHDN) has recently seen changes in its ownership structure with various hedge funds and institutional investors altering their stakes in the company. Cambridge Investment Research Advisors Inc. increased its position in Churchill Downs by 16.4% during the first quarter, now owning 4,489 shares valued at $996,000. Similarly, Mitsubishi UFJ Trust & Banking Corp grew its stake by 78.1%, and now owns 684 shares worth $152,000.
Citigroup Inc. also boosted its holdings in Churchill Downs by 24.8% during the first quarter, now owning 21,849 shares valued at $4,845,000. BlackRock Inc., one of the world’s largest investment management corporations, raised its position in the company by 2.2%, now holding 3,380,964 shares valued at $749,830,000.
Additionally, Great West Life Assurance Co. Can increased its holdings in Churchill Downs by 8.2% during the same period, now owning 19,258 shares worth $4,389,000.
These recent moves have resulted in approximately 38.15% of Churchill Downs’ stock being owned by institutional investors.
On August 14th this year, CHDN was traded at a price of $123.19 on NASDAQ and witnessed a total trading volume of approximately 412,723 shares on that day alone.
Churchill Downs Incorporated operates as an entertainment company with various interests in gambling and horse racing events and facilities across the United States.
The company has experienced a fluctuation in its stock value over the past year due to market conditions and external factors such as economic uncertainty caused by the global pandemic.
With a debt-to-equity ratio of 5.33 and current quick ratio of 0.90 indicating a relatively high level of debt compared to equity and liquidity concerns respectively; Churchill Downs has successfully managed to maintain a market capitalization of $9.22 billion.
The stock’s price-earnings ratio stands at 26.41, suggesting that investors are willing to pay a premium for each dollar of earnings generated by the company. Moreover, its price-to-earnings growth (PEG) ratio is 12.20, implying that the market has high expectations for future growth in earnings.
Several research analyst reports have been published regarding Churchill Downs. Bank of America reduced their target price on the stock from $155.00 to $142.00 and maintained a “buy” rating on the stock, while Truist Financial decreased their price objective from $165.00 to $155.00 and also assigned a “buy” rating.
JMP Securities echoed these sentiments by cutting their target price on Churchill Downs from $160.00 to $155.00 but maintained an “outperform” rating.
Wells Fargo & Company decreased their price target even further, from $150.00 to $139.00 but still gave an “overweight” rating for the company, indicating their confidence in its long-term prospects.
StockNews.com began coverage of Churchill Downs and assigned a “hold” rating back in May 2023 as initial coverage of the stock.
In conclusion, despite recent changes in ownership structure and varied ratings from research analysts, Churchill Downs Incorporated remains an intriguing investment option with its significant presence in gambling and horse racing events along with a market capitalization exceeding $9 billion.
