Credit Acceptance Corporation (NASDAQ:CACC - Get Free Report) COO Jonathan Lum sold 3,000 shares of Credit Acceptance stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $535.00, for a total transaction of $1,605,000.00. Following the completion of the sale, the chief operating officer owned 31,609 shares of the company's stock, valued at $16,910,815. This represents a 8.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Credit Acceptance Stock Performance
Shares of CACC stock opened at $526.76 on Thursday. The company has a 50 day moving average price of $473.33 and a 200-day moving average price of $468.05. Credit Acceptance Corporation has a 52 week low of $401.90 and a 52 week high of $549.75. The firm has a market capitalization of $5.66 billion, a PE ratio of 14.43 and a beta of 1.32. The company has a quick ratio of 16.91, a current ratio of 16.91 and a debt-to-equity ratio of 4.10.
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, topping analysts' consensus estimates of $10.30 by $1.05. Credit Acceptance had a net margin of 18.29% and a return on equity of 28.86%. The firm had revenue of $408.20 million during the quarter, compared to analyst estimates of $582.63 million. During the same period in the previous year, the business posted $10.17 earnings per share. The business's revenue for the quarter was up 2.5% on a year-over-year basis. As a group, equities research analysts expect that Credit Acceptance Corporation will post 47 earnings per share for the current year.
Key Headlines Impacting Credit Acceptance
Here are the key news stories impacting Credit Acceptance this week:
- Positive Sentiment: Analyst support and coverage improvements — Stephens raised its price target to $540 and Zacks upgraded the stock to Strong Buy, supporting near-term investor confidence. MarketBeat CACC Coverage
- Positive Sentiment: Institutional buying and large stakes — multiple funds (M&T Bank new position, Boston Partners, Dimensional, Smead, Universal Beteiligungs) have recently increased or established sizable positions, which is supportive of demand for the shares. MarketBeat CACC Coverage
- Neutral Sentiment: Mixed fundamentals — Credit Acceptance beat EPS expectations in the most recent quarter but missed consensus revenue, leaving fundamentals mixed and making sentiment more driven by flows and insider/institutional activity than near-term top-line momentum. Quarterly Results Summary
- Neutral Sentiment: Several insider sales were executed under pre-arranged Rule 10b5-1 plans (CFO Jay Martin, COO Jonathan Lum, Director Kenneth Booth), which reduces but does not eliminate the negative signal that raw insider selling can create. See one of the Form 4 filings. Lum Form 4
- Negative Sentiment: Large insider selling by major holders — Jill Foss Watson (major shareholder) sold 9,450 shares (~$5.09M) and other executives/directors sold multi‑thousand share blocks in recent days; aggregated insider selling is a near‑term headwind for sentiment. Watson Sale
- Negative Sentiment: Media highlights executives “cashing in” — coverage calling out multiple insider sales can amplify investor concern even when some trades are planned. TipRanks Article
Analyst Ratings Changes
A number of analysts have recently commented on CACC shares. TD Cowen lifted their price target on shares of 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 target on shares of Credit Acceptance from $450.00 to $540.00 and gave the stock an "equal weight" rating in a research note on Friday, April 17th. Zacks Research upgraded shares of Credit Acceptance from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, February 3rd. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Credit Acceptance in a research report on Monday. One investment analyst has rated the stock with a Strong Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Credit Acceptance currently has an average rating of "Moderate Buy" and an average target price of $505.00.
Read Our Latest Analysis on Credit Acceptance
Institutional Trading of Credit Acceptance
Several large investors have recently added to or reduced their stakes in the business. M&T Bank Corp bought a new stake in Credit Acceptance during the fourth quarter valued at approximately $208,294,000. Boston Partners grew its position in Credit Acceptance by 3.4% during the fourth quarter. Boston Partners now owns 456,253 shares of the credit services provider's stock valued at $202,373,000 after buying an additional 14,877 shares during the period. Dimensional Fund Advisors LP grew its position in Credit Acceptance by 9.8% during the fourth quarter. Dimensional Fund Advisors LP now owns 223,872 shares of the credit services provider's stock valued at $99,284,000 after buying an additional 20,011 shares during the period. Smead Capital Management Inc. grew its position in Credit Acceptance by 17.0% during the second quarter. Smead Capital Management Inc. now owns 216,811 shares of the credit services provider's stock valued at $110,450,000 after buying an additional 31,438 shares during the period. Finally, Universal Beteiligungs und Servicegesellschaft mbH grew its position in Credit Acceptance by 764.8% during the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 203,879 shares of the credit services provider's stock valued at $91,652,000 after buying an additional 180,304 shares during the period. 81.71% of the stock is currently owned by institutional investors.
Credit Acceptance Company Profile
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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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