Churchill Story

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CHDN -- USA Stock  

USD 169.40  0.16  0.09%

It seems Churchill Downs will continue to recover much faster as its share price surged up 14.35% today. The company's current daily volatility is 4.18 percent, with a beta of 0.23 and an alpha of 0.09 over DOW. While some of us are getting more passionate about entertainment, it makes sense to outline Churchill Downs Incorporated in greater detail to make a better estimate of its volatility. We will analyze why Churchill Downs investors may still consider a stake in the business.
Published over three weeks ago
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Should you pick up Churchill Downs Incorporated after the latest volatility rise?
Churchill Downs Incorporated currently holds roughly 649.2 M in cash with 152.2 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 16.71. Macroaxis provides advice on Churchill Downs Inco to complement and cross-verify current analyst consensus on Churchill Downs Incorporated. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
Investing in Churchill Downs, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Churchill Downs along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is Churchill Downs's Liquidity

Churchill Downs financial leverage refers to using borrowed capital as a funding source to finance Churchill Downs Incorporated ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Churchill Downs financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Churchill Downs's total debt and its cash.

How Churchill utilizes its cash?

To perform a cash flow analysis of Churchill Downs, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Churchill Downs is receiving and how much cash it distributes out in a given period. The Churchill Downs cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Churchill Downs Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 254.15 Million

Churchill Downs Correlation with Peers

Investors in Churchill can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Churchill Downs Incorporated. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Churchill Downs and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Churchill is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Churchill for more details

Acquisition by Ulysses Bridgeman of tradable shares of Churchill Downs subject to Rule 16b-3

Legal trades by Churchill Downs insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Churchill insider trading alert for grant of common stock by Ulysses Bridgeman, the corporate stakeholder, on 2nd of October 2020. This event was filed by Churchill Downs Inc with SEC on 2020-10-02. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is Churchill Downs valued adequately by the market?

Churchill Downs appears to be very steady, given 1 month investment horizon. Churchill Downs Inco secures Sharpe Ratio (or Efficiency) of 0.11, which signifies that the company had 0.11% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Churchill Downs Incorporated, which you can use to evaluate future volatility of the firm. Please makes use of Churchill Downs Inco Risk Adjusted Performance of 0.0449, downside deviation of 3.23, and Mean Deviation of 2.33 to double-check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Our perspective of the latest Churchill Downs rise

Churchill Downs latest standard deviation surges over 3.21. As of the 27th of September, Churchill Downs shows the Risk Adjusted Performance of 0.0449, mean deviation of 2.33, and Downside Deviation of 3.23. Churchill Downs Inco technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to break down nineteen technical drivers for Churchill Downs Incorporated, which can be compared to its rivals. Please confirm Churchill Downs Inco variance, maximum drawdown, as well as the relationship between the Maximum Drawdown and semi variance to decide if Churchill Downs Inco is priced correctly, providing market reflects its regular price of 169.72 per share. Given that Churchill Downs has jensen alpha of 0.0904, we suggest you to validate Churchill Downs Incorporated's prevailing market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Churchill Downs

Whereas few other entities within the gambling industry are still a little expensive, even after the recent corrections, Churchill Downs may offer a potential longer-term growth to institutional investors. To conclude, as of the 27th of September 2020, our analysis shows that Churchill Downs slowly supersedes the market. The company is overvalued and projects low odds of distress for the next 2 years. Our final 30 days buy-sell recommendation on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Churchill Downs Incorporated. Please refer to our Terms of Use for any information regarding our disclosure principles.

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