CHDN Should I Buy
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Churchill Downs Inc (CHDN) is not a strong buy at the moment for a beginner investor with a long-term strategy. The technical indicators suggest a bearish trend, and while analysts maintain positive ratings, the stock's recent performance and financial challenges indicate limited immediate upside potential. Given the investor's profile and the lack of strong proprietary trading signals, holding off on purchasing this stock is advisable.
The stock shows a bearish trend with moving averages indicating downward momentum (SMA_200 > SMA_20 > SMA_5). The RSI is neutral at 35.877, and the MACD histogram is positive but contracting, suggesting limited bullish momentum. The price is below the pivot level of 91.828, with key support at 87.714 and resistance at 95.942.
The company benefits from easy Derby comps and potential growth in new market capital projects.
Hedge funds are selling heavily, with a 115.46% increase in selling activity last quarter. Financial performance in Q4 2025 showed declining net income (-29.36% YoY) and EPS (-25.26% YoY), despite revenue growth. Broader market challenges in the gaming sector, including competition from prediction markets and regulatory issues, add to the uncertainty.
In Q4 2025, revenue increased by 6.68% YoY to $665.9M, but net income dropped by 29.36% YoY to $49.8M. EPS also declined by 25.26% YoY to 0.71. Gross margin improved slightly to 30.21%, up 2.20% YoY, indicating some operational efficiency.
Analysts are generally positive, with multiple firms maintaining Buy or Overweight ratings. Price targets range from $124 to $145, reflecting optimism about the company's long-term growth potential despite short-term challenges.
