Churchill Downs approves new $500 million share repurchase program

LOUISVILLE - Churchill Downs Incorporated (NASDAQ:CHDN), a $7.9 billion market cap company currently trading at $109.34, announced Wednesday that its Board of Directors has approved a $500 million share repurchase program, replacing the prior authorization of the same amount from March 2025. According to InvestingPro analysis, the stock appears undervalued relative to its Fair Value.

The company, known for operating the Kentucky Derby, said the new program includes any remaining repurchase authority from the previous authorization rather than being an additional allocation.

According to the announcement, management may conduct share repurchases at its discretion through open market transactions, with or without a 10b5-1 plan, or through privately negotiated transactions. The program has no time limit and can be suspended or discontinued at any time.

Churchill Downs Incorporated operates in the gaming and entertainment sector with businesses spanning live and historical racing venues, online wagering platforms, and regional casino properties.

The company’s statement did not specify how much of the previous share repurchase authorization had been utilized prior to this announcement, nor did it provide a timeline or specific targets for the new program.

Based in Louisville, Kentucky, Churchill Downs has been in operation for over 150 years, with the Kentucky Derby serving as its flagship event.

The information was provided in a company press release issued Wednesday.

In other recent news, Churchill Downs has announced significant developments that may interest investors. The company has agreed to acquire a 90% equity stake in the Casino Salem project in southern New Hampshire for $180 million, which will be funded through its existing revolving credit facility. This acquisition has been met with a positive response from analysts, with Stifel reiterating its Buy rating and setting a price target of $133.00. Additionally, Churchill Downs’ earnings report for the second quarter of 2025 is scheduled for release after the market closes on July 23, with a conference call to follow the next day.

Further analyst insights include Mizuho raising its price target for Churchill Downs to $136.00 while maintaining an Outperform rating, highlighting the strong performance of the Rose gaming facility in Virginia. JMP Securities has also reiterated its Market Outperform rating, with a price target of $138.00, emphasizing potential growth catalysts. These developments reflect a continued optimistic outlook from several analyst firms.

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