Beck Bode Initiates Churchill Downs Position as Regional Gaming Expansion Lifts Growth Prospects

2026-02-22 00:38:14

What happened

According to a SEC filing dated February 6, 2026, Beck Bode, LLC established a new position in Churchill Downs (CHDN +1.45%) by acquiring 154,871 shares. The estimated value of the transaction is $17.62 million. The stake’s quarter-end value, also $17.62 million, reflects both the purchase and any price movement during the period.

What else to know

This was a new position for Beck Bode, LLC, representing 2.93% of its $601.19 million in reportable U.S. equity assets as of December 31, 2025.

Top holdings after the filing:

NASDAQ: NVDA: $31.75 million (5.3% of AUM)
NYSE: CAH: $23.66 million (3.9% of AUM)
NASDAQ: CEG: $22.73 million (3.8% of AUM)
NYSE: ANET: $21.50 million (3.6% of AUM)
NASDAQ: ROKU: $21.26 million (3.5% of AUM)

As of February 6, 2026, shares of Churchill Downs were priced at $93.55, down 23.8% over the past year, underperforming the S&P 500 by 37.76 percentage points.

Company overview

Metric	Value
Price (as of market close 2/6/26)	$93.55
Market Capitalization	$6.57 billion
Revenue (TTM)	$2.88 billion
Net Income (TTM)	$403.4 million

Company snapshot

Churchill Downs is a diversified gambling and entertainment company with a national footprint in live racing, online wagering, and casino operations across multiple U.S. states… The company leverages iconic racing assets, proprietary technology, and a broad gaming portfolio to drive growth and maintain a leading position in the U.S. gaming industry.

Its integrated approach across physical venues and digital platforms enables Churchill Downs to capture multiple revenue streams and adapt to evolving consumer preferences in the gaming sector.

Churchill Downs serves gaming and racing enthusiasts, online bettors, and casino patrons seeking entertainment and wagering experiences.

What this transaction means for investors

Churchill Downs is best known for hosting the Kentucky Derby, but its true earnings power comes from regional casinos and historical horse racing terminals that generate recurring gaming revenue. The company has spent aggressively to expand that footprint, betting that new properties and HHR facilities will drive higher long-term cash flow. Following a roughly 20% decline in the stock over the past year, Beck Bode initiated a new position in the fourth quarter, acquiring approximately 155,000 shares valued at $17.6 million.

Churchill Downs generates most of its revenue from gaming operations, including casinos, historical racing venues, and online wagering through TwinSpires. Gaming revenue is driven by foot traffic, machine volumes, and spending per visit, while margins depend on property mix and operating efficiency. The company has been investing heavily to expand its regional footprint and add high-return gaming capacity, a strategy that can pressure near-term earnings but is intended to drive stronger cash flow over time.

For investors, the key variable to watch is whether new historical racing and regional gaming investments generate the returns management is targeting. The performance of historical horse racing facilities and regional casino projects, along with manageable leverage, will ultimately determine if this investment phase strengthens the long-term earnings profile.

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