Key Points
- Insider sale: Director Wendy Rummler sold 5,236 shares of CACC on Jan. 30 at an average price of $493.44 for proceeds of about $2.58 million, reducing her stake by 20.13% to 20,772 shares (≈$10.25M).
- Earnings mixed: Credit Acceptance reported Q EPS of $11.35 (beats $10.30 est.) but revenue came in at $408.2M versus $582.6M expected, while ROE was 28.46% and net margin 18.29%.
- Market and analyst context: CACC shares were up ~2.3% (opened $507.26), with a market cap of $5.6B, P/E 13.9, institutional ownership ~81.7%, and a consensus analyst rating of Moderate Buy with a $470 target.
Credit Acceptance Corporation (NASDAQ:CACC - Get Free Report) insider Wendy Rummler sold 5,236 shares of Credit Acceptance stock in a transaction that occurred on Friday, January 30th. The shares were sold at an average price of $493.44, for a total value of $2,583,651.84. Following the sale, the insider directly owned 20,772 shares in the company, valued at approximately $10,249,735.68. The trade was a 20.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink.
Credit Acceptance Stock Up 2.3%
CACC stock opened at $507.26 on Thursday. Credit Acceptance Corporation has a fifty-two week low of $401.90 and a fifty-two week high of $549.75. The company has a market capitalization of $5.60 billion, a price-to-earnings ratio of 13.90 and a beta of 1.27. The business's 50 day moving average price is $462.71 and its two-hundred day moving average price is $474.72. The company has a debt-to-equity ratio of 3.94, a quick ratio of 15.81 and a current ratio of 15.81.
Credit Acceptance (NASDAQ:CACC - Get Free Report) last released its earnings results on Thursday, January 29th. The credit services provider reported $11.35 EPS for the quarter, beating analysts' consensus estimates of $10.30 by $1.05. The company had revenue of $408.20 million during the quarter, compared to analysts' expectations of $582.63 million. Credit Acceptance had a return on equity of 28.46% and a net margin of 18.29%.The firm's revenue for the quarter was up 2.5% compared to the same quarter last year. During the same quarter last year, the business posted $10.17 EPS. As a group, analysts forecast that Credit Acceptance Corporation will post 53.24 earnings per share for the current fiscal year.
Wall Street Analysts Forecast Growth
A number of analysts have recently weighed in on the stock. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Credit Acceptance in a research report on Wednesday, January 21st. Zacks Research raised shares of Credit Acceptance from a "hold" rating to a "strong-buy" rating in a research note on Tuesday. Finally, TD Cowen upped their price objective on shares of Credit Acceptance from $460.00 to $470.00 and gave the stock a "hold" rating in a report on Friday, January 30th. One analyst has rated the stock with a Strong Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $470.00.
Check Out Our Latest Analysis on CACC
Hedge Funds Weigh In On Credit Acceptance
Hedge funds have recently bought and sold shares of the company. Royal Bank of Canada grew its position in Credit Acceptance by 31.6% during the 1st quarter. Royal Bank of Canada now owns 1,916 shares of the credit services provider's stock valued at $989,000 after purchasing an additional 460 shares during the last quarter. AQR Capital Management LLC raised its holdings in Credit Acceptance by 230.6% in the first quarter. AQR Capital Management LLC now owns 7,885 shares of the credit services provider's stock worth $3,961,000 after buying an additional 5,500 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of Credit Acceptance by 3.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 23,886 shares of the credit services provider's stock worth $12,334,000 after buying an additional 900 shares in the last quarter. Mraz Amerine & Associates Inc. grew its holdings in shares of Credit Acceptance by 2.1% during the second quarter. Mraz Amerine & Associates Inc. now owns 13,325 shares of the credit services provider's stock valued at $6,788,000 after buying an additional 268 shares during the last quarter. Finally, KLP Kapitalforvaltning AS grew its holdings in shares of Credit Acceptance by 7.7% during the second quarter. KLP Kapitalforvaltning AS now owns 1,400 shares of the credit services provider's stock valued at $713,000 after buying an additional 100 shares during the last quarter. Institutional investors own 81.71% of the company's stock.
About Credit Acceptance
(
Get Free Report)
Credit Acceptance Corporation, founded in 1972 and headquartered in Southfield, Michigan, is a specialty finance company focused on the indirect automotive lending market. The company partners with independent and franchised auto dealers to facilitate purchase financing for consumers who may not qualify for traditional prime auto loans. By purchasing retail installment contracts originated by these dealers, Credit Acceptance provides capital and credit insurance to support vehicle sales, enabling dealers to broaden their customer base and reduce credit risk.
Through its proprietary underwriting platform and risk management strategies, Credit Acceptance evaluates borrower applications, structures credit plans, and retains servicing rights on the acquired contracts.
Further Reading
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