Key Points
- Kenneth Booth, a director at Credit Acceptance, sold 2,000 shares on Feb. 9 at an average price of $508 for a total of $1,016,000, leaving him with 22,832 shares (an 8.05% reduction).
- The company reported quarterly EPS of $11.35 (beating estimates) while revenue of $408.2M missed expectations; the stock trades around $510 with a P/E of 13.99 and a 52‑week range of $401.90–$549.75.
- Analysts have an average rating of “Moderate Buy” with an average price target of $470, and institutional investors own about 81.71% of the shares.
Credit Acceptance Corporation (NASDAQ:CACC - Get Free Report) Director Kenneth Booth sold 2,000 shares of the stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $508.00, for a total value of $1,016,000.00. Following the completion of the sale, the director directly owned 22,832 shares of the company's stock, valued at approximately $11,598,656. The trade was a 8.05% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website.
Credit Acceptance Price Performance
Shares of CACC opened at $510.71 on Thursday. The company has a current ratio of 15.81, a quick ratio of 15.81 and a debt-to-equity ratio of 3.94. The company's fifty day simple moving average is $466.96 and its 200 day simple moving average is $474.26. Credit Acceptance Corporation has a 1-year low of $401.90 and a 1-year high of $549.75. The company has a market cap of $5.63 billion, a price-to-earnings ratio of 13.99 and a beta of 1.27.
Credit Acceptance (NASDAQ:CACC - Get Free Report) last announced its quarterly 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. Credit Acceptance had a net margin of 18.29% and a return on equity of 28.46%. The firm had revenue of $408.20 million during the quarter, compared to analysts' expectations of $582.63 million. During the same quarter last year, the company posted $10.17 earnings per share. The company's revenue for the quarter was up 2.5% compared to the same quarter last year. On average, research analysts forecast that Credit Acceptance Corporation will post 53.24 earnings per share for the current fiscal year.
Analysts Set New Price Targets
A number of brokerages have weighed in on CACC. Weiss Ratings reissued a "hold (c)" rating on shares of Credit Acceptance in a research report on Wednesday, January 21st. Zacks Research upgraded Credit Acceptance from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, February 3rd. Finally, TD Cowen boosted their target price on Credit Acceptance from $460.00 to $470.00 and gave the stock a "hold" rating in a report on Friday, January 30th. One research analyst has rated the stock with a Strong Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $470.00.
Read Our Latest Research Report on Credit Acceptance
Institutional Trading of Credit Acceptance
Institutional investors have recently bought and sold shares of the business. State of Wyoming acquired a new position in shares of Credit Acceptance during the 4th quarter worth approximately $27,000. Allworth Financial LP raised its position in shares of Credit Acceptance by 141.9% in the third quarter. Allworth Financial LP now owns 104 shares of the credit services provider's stock valued at $49,000 after buying an additional 61 shares in the last quarter. Vestcor Inc bought a new stake in shares of Credit Acceptance in the third quarter valued at approximately $50,000. Covestor Ltd grew its position in Credit Acceptance by 775.0% during the fourth quarter. Covestor Ltd now owns 175 shares of the credit services provider's stock worth $78,000 after buying an additional 155 shares in the last quarter. Finally, Havemeyer Place LP bought a new position in Credit Acceptance during the 4th quarter worth $86,000. 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.
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