Key Points
- CFO Jay Martin sold 3,000 shares of Credit Acceptance (NASDAQ:CACC) on April 17 at an average price of $525.63 for $1,576,890, reducing his stake by 10.36% to 25,963 shares; the sale was executed under a pre-arranged Rule 10b5-1 plan.
- Credit Acceptance reported EPS of $11.35 (beating the $10.30 consensus) but revenue of $408.2M (below the $582.63M estimate); analysts have a consensus rating of "Moderate Buy" with a consensus price target of $505.00.
- Shares opened at $521.23 with a market cap of $5.6B and a 12‑month range of $401.90–$549.75, and institutional investors/hedge funds own about 81.71% of the stock, including a new ~$208M position by M&T Bank.
Credit Acceptance Corporation (NASDAQ:CACC - Get Free Report) CFO Jay Martin sold 3,000 shares of Credit Acceptance stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $525.63, for a total value of $1,576,890.00. Following the sale, the chief financial officer directly owned 25,963 shares in the company, valued at $13,646,931.69. This trade represents a 10.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Credit Acceptance Stock Down 4.0%
Shares of CACC opened at $521.23 on Wednesday. The business's 50 day moving average is $473.01 and its 200 day moving average is $467.64. The company has a market capitalization of $5.60 billion, a PE ratio of 14.28 and a beta of 1.32. Credit Acceptance Corporation has a 12-month low of $401.90 and a 12-month high of $549.75. The company has a current ratio of 16.91, a quick ratio of 16.91 and a debt-to-equity ratio of 4.10.
Credit Acceptance (NASDAQ:CACC - Get Free Report) last issued its earnings results on Thursday, January 29th. The credit services provider reported $11.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $10.30 by $1.05. The company had revenue of $408.20 million for the quarter, compared to the consensus estimate of $582.63 million. Credit Acceptance had a return on equity of 28.86% and a net margin of 18.29%.The firm's quarterly revenue was up 2.5% on a year-over-year basis. During the same quarter last year, the company earned $10.17 EPS. Research analysts expect that Credit Acceptance Corporation will post 47 earnings per share for the current fiscal year.
Analyst Upgrades and Downgrades
CACC has been the topic of several recent analyst reports. Zacks Research raised Credit Acceptance from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, February 3rd. TD Cowen lifted their price objective on Credit Acceptance from $460.00 to $470.00 and gave the stock a "hold" rating in a research note on Friday, January 30th. Stephens lifted their price objective on Credit Acceptance from $450.00 to $540.00 and gave the stock an "equal weight" rating in a research note on Friday, April 17th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Credit Acceptance in a research note on Wednesday, January 21st. One investment analyst has rated the stock with a Strong Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $505.00.
Check Out Our Latest Report on CACC
Hedge Funds Weigh In On Credit Acceptance
A number of institutional investors and hedge funds have recently modified their holdings of the stock. M&T Bank Corp purchased a new position in shares of Credit Acceptance in the 4th quarter worth approximately $208,294,000. Boston Partners boosted its holdings in shares of Credit Acceptance by 3.4% in the 4th quarter. Boston Partners now owns 456,253 shares of the credit services provider's stock worth $202,373,000 after purchasing an additional 14,877 shares during the period. Dimensional Fund Advisors LP boosted its holdings in shares of Credit Acceptance by 9.8% in the 4th quarter. Dimensional Fund Advisors LP now owns 223,872 shares of the credit services provider's stock worth $99,284,000 after purchasing an additional 20,011 shares during the period. Smead Capital Management Inc. boosted its holdings in shares of Credit Acceptance by 17.0% in the 2nd quarter. Smead Capital Management Inc. now owns 216,811 shares of the credit services provider's stock worth $110,450,000 after purchasing an additional 31,438 shares during the period. Finally, Universal Beteiligungs und Servicegesellschaft mbH boosted its holdings in shares of Credit Acceptance by 764.8% in the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 203,879 shares of the credit services provider's stock worth $91,652,000 after purchasing an additional 180,304 shares during the period. Hedge funds and other institutional investors own 81.71% of the company's stock.
Credit Acceptance Company Profile
(
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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