Shares of Kentucky Derby parent company Churchill Downs Inc (NASDAQ:CHDN) have fallen to lows last seen in October 2020. The company could have a hero coming to the rescue with entrepreneur and horse owner Mike Repole ready to make moves.
Mike Repole Takes Stake in Churchill Downs
Repole may be best known in the beverage world as the co-founder of Vitaminwater parent Glaceau and BodyArmor, companies that were sold to Coca-Cola for $4.1 billion and $5.6 billion respectively. Repole is also a horse owner with the Repole Stable a regular fixture at each year’s Kentucky Derby.
While Repole has gone 0-12 at the prestigious annual horse race, including several horses scratched, he’s hoping to win big with shares of the company that owns the race and legendary racetrack.
"Over the past four days, I’ve purchased 1 million shares and close to a 1.5% stake in @ChurchillDowns, and I may acquire more. I’m extremely excited about the possibilities. Churchill has tremendous assets, led by what I believe is the global crown jewel of horse racing, the @KentuckyDerby," Repole tweeted.
Repole said horse racing needs more education, marketing, innovation and evolution. He also highlighted the need for "stronger leadership and greater accountability," citing the "Old Guard" that has held growth of the sport back.
"Nobody loves building epic businesses and brands in a disruptive way more than I do. I believe a meaningful ownership stake in Churchill gives me the greatest opportunity to help create value for Churchill shareholders AND make a positive financial impact across all of racing."
The Churchill Downs Opportunity
Repole said he looks forward to working together with Churchill Downs CEO Bill Carstanjen and the company’s board of directors.
"I see firsthand the potential of what I believe is one of the most undervalued sports nationally and globally," Repole tweeted.
The entrepreneur highlighted strong viewership of the Kentucky Derby, which had 24.4 million viewers last year.
"That’s a major proof point of how BIG this sport can become."
Repole’s success in the beverage space at selling to bigger companies could be viewed as a positive. Another positive for the sports world is Repole’s past history working both with Kobe Bryant on BodyArmor and with Tom Brady on NoBull. Repole is also an investor in the United Football League.
Churchill Down reported records for revenue and adjusted EBITDA in this year’s second quarter along with record wagering for the Kentucky Derby week.
The company is set to report third-quarter financial results on Oct. 28, which could allow analysts to ask management if they have spoken to Repole or plan to engage in conversation.
While the stock price has struggled, the company has been beating analyst estimates. The company has beaten analyst estimates for earnings per share in seven of the last 10 quarters and beat revenue estimates in nine of the last 10 quarters.
Churchill Downs Stock Price Action
Churchill Downs stock is up 5.4% to $80.28 on Friday, likely a reaction to Repole’s tweet. Shares have traded between $73.08 and $118.35 over the last 52 weeks, hitting the yearly lows earlier this month, levels last seen in October 2020. Overall, Churchill Down stock is down 28.3% year-to-date in 2026.
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