Welcome to Insider Trades Daily, glad you're here! Every day, more than 500,000 investors use this newsletter to track insider buying and selling across major public companies. It’s a simple way to see what the people closest to the business are doing with their own money. Before we start sending your daily updates, there’s just one quick thing left to do. Please confirm your subscription using the link below. Click Here to Confirm Your Subscription to Insider Trades Daily It takes a few seconds and helps make sure your newsletter shows up where it belongs, your inbox, not a spam folder. Once you’re confirmed, we’ll take it from there and deliver clear, no-nonsense insider trading insights straight to you. Start Receiving Insider Information The InsiderTrades.com Team P.S. If there's anything we can do to improve your experience, please let us know by replying to this email.
This Month's Featured News
Churchill Downs: The Derby Is Just the BeginningSubmitted by Chris Markoch. Date Posted: 4/24/2026. 
Key Points
- Churchill Downs beat Q1 2026 earnings expectations, driven by strong growth in historical racing machines.
- The company’s $85 million Preakness Stakes IP acquisition adds high-margin licensing revenue and strategic control.
- With analysts seeing ~35% upside, HRM expansion remains the key driver for long-term CHDN stock growth.
- Special Report: The Biggest IPO Ever: Claim Your Stake Today
In a game of word association, Churchill Downs and the Kentucky Derby are a natural pair. But for investors, it’s worth getting familiar with Churchill Downs Inc. (NASDAQ: CHDN), the parent company that operates the racetrack hosting the Kentucky Derby. It’s much more than an event-driven company and still has plenty of growth ahead. That growth was evident in the company’s Q1 2026 earnings report. Churchill Downs delivered records on both the top and bottom lines.
A little-known stock pick with money-doubling potential over the next year is revealed for free in the first three minutes of a new video. This company is a critical piece of Elon Musk's fast-growing Starlink technology. It could climb 100 percent or more over the next year as Elon brings Starlink public in what may be the biggest IPO in history. No credit card is required to get the ticker. Watch the free video to get the ticker today.
Revenue of $663 million beat estimates of $659.32 million and came in 3% higher than the $642.6 million the company posted in Q1 2025, a quarter in which it, by the way, came in below estimates. Earnings per share (EPS) of $1.21 came in 18 cents better than forecasts and 14 cents higher year over year (YOY). The Real Reason to Bet on Churchill DownsHistorically, the second quarter has been Churchill Downs’ strongest quarter, and with good reason. That’s the quarter in which the Kentucky Derby is run. The rest of the year, revenue from Churchill Downs Racetrack doesn’t amount to much. For example, this quarter it accounted for $3 million, a YOY decline of $1 million. That’s why the event, as iconic as it is, is a poor reason to invest in CHDN. The better reason is the company’s leadership position in Historical Racing Machines (HRMs). These are essentially slot machine-style terminals that allow players to bet on outcomes of previously run horse races. The historical data is stripped away, so the result feels like live gambling. That may sound strange, but there’s a method to the madness. These HRMs are legally classified as a form of pari-mutuel horse racing wagering, not casino gambling. That means they can operate in states where traditional casinos are illegal. In the quarter, segment revenue came in at $301 million, a $24 million increase YOY, almost entirely driven by HRMs. Expansion is a significant part of the growth story:
Rockingham Grand Casino in Salem, New Hampshire, announced Jan. 12, is a $180-$200 million investment targeting a mid-2027 opening.
Churchill Downs Expands Its Racing Empire With Preakness DealThe Kentucky Derby is the first, and arguably the most iconic, leg in horse racing’s Triple Crown. That trio of events includes the Preakness Stakes and the Belmont Stakes. That’s why investors should note that on April 21, two days before the earnings report, Churchill Downs announced that it agreed to purchase the intellectual property of both the Preakness Stakes and Black-Eyed Susan Stakes for $85 million. This means Churchill Downs will hold all the trademarks and associated rights of the Preakness Stakes without having to run the event or own Pimlico, the host racetrack. Instead, it collects an annual licensing fee from the state of Maryland and has leverage over future broadcast rights, negotiations, calendar reform, potential HRM licensing, and the cultural narrative of American thoroughbred racing. And it does so for less than one quarter of its current free cash flow (FCF). That wasn’t priced into CHDN before earnings. CHDN Stock Outlook: Can HRM Growth Drive the Next Leg Higher?CHDN jumped more than 10% the day of its earnings report. Prior to the report, the stock was trading close to its 52-week low. That means investors have probably seen the floor—but what’s the ceiling? Analysts give CHDN a consensus price target of $135.60, an upside of 35%. With that much upside, it’s fair to wonder if the Preakness IP rights are enough to move price targets higher. Churchill Downs operates across four revenue streams: Live Racing, Historical Racing Machines, its TwinSpires wagering platform, and traditional casino gaming. Of these, Live Racing and Gaming don't move the needle enough to build a growth case—casino revenue actually declined year over year in Q1, weighed down by the exit from Louisiana. TwinSpires, which handles online and retail horse racing wagering plus sports betting, is a steady contributor but not a high-growth engine. That leaves the real growth burden on HRMs—a business that delivered $257 million in pari-mutuel revenue in Q1 alone and is actively expanding into new states. The Preakness IP acquisition adds an intriguing wrinkle: if it accelerates HRM legalization in Maryland, as some analysts expect, CDI's most important growth driver just got a new runway. Looking back at the chart, CHDN was in a cautious recovery after a steep selloff from a December 2025 peak around $120. That led to a death cross, with the 50-day simple moving average (SMA) crossing below the 200-day SMA. 
Price action reclaimed the 200-day SMA on the day of the report, which is a significant move in a single session, especially when investors also received a fundamental catalyst. The key will be whether CHDN can consolidate around the 200-day SMA at roughly $92 to $93. That could set the stage for a golden cross in a matter of weeks. Waiting for that confirmation may be more prudent, but risk-tolerant investors may want to initiate a position at these levels. |
0 Response to "Ready when you are"
Post a Comment