Key Points
- Credit Acceptance CTO Ravi Mohan Valiyaveettil sold 1,262 shares on May 6 at an average price of $550 each, totaling about $694,100. The sale was made under a pre-arranged Rule 10b5-1 trading plan.
- After the transaction, Valiyaveettil still owned 25,985 shares valued at roughly $14.29 million, representing a 4.63% reduction in his direct stake.
- The company recently reported Q1 earnings of $10.71 per share, slightly below expectations, while revenue came in well under analyst estimates. Shares were up about 2% in trading, and analysts currently have a Moderate Buy consensus with an average price target of $520.
Credit Acceptance Corporation (NASDAQ:CACC - Get Free Report) CTO Ravi Mohan Valiyaveettil sold 1,262 shares of the firm's stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $550.00, for a total transaction of $694,100.00. Following the completion of the sale, the chief technology officer directly owned 25,985 shares of the company's stock, valued at approximately $14,291,750. This represents a 4.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Credit Acceptance Trading Up 2.0%
NASDAQ:CACC opened at $533.15 on Friday. The company has a 50-day moving average price of $478.16 and a 200-day moving average price of $469.49. Credit Acceptance Corporation has a 12 month low of $401.90 and a 12 month high of $565.14. The company has a current ratio of 13.62, a quick ratio of 16.91 and a debt-to-equity ratio of 4.09. The stock has a market cap of $5.58 billion, a price-to-earnings ratio of 13.25 and a beta of 1.36.
Credit Acceptance (NASDAQ:CACC - Get Free Report) last posted its earnings results on Tuesday, May 5th. The credit services provider reported $10.71 EPS for the quarter, missing the consensus estimate of $10.73 by ($0.02). Credit Acceptance had a return on equity of 29.95% and a net margin of 19.49%.The company had revenue of $406.00 million during the quarter, compared to analysts' expectations of $580.77 million. During the same period in the prior year, the business posted $9.35 earnings per share. The company's revenue for the quarter was up 1.6% on a year-over-year basis. Equities analysts predict that Credit Acceptance Corporation will post 47.5 EPS for the current year.
Analysts Set New Price Targets
Several equities research analysts have recently commented on CACC shares. Stephens raised their target price on shares of Credit Acceptance from $450.00 to $540.00 and gave the stock an "equal weight" rating in a research report on Friday, April 17th. Zacks Research raised shares of Credit Acceptance from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, February 3rd. Weiss Ratings reissued a "hold (c)" rating on shares of Credit Acceptance in a research report on Monday, April 20th. Finally, TD Cowen lifted their price target on shares of Credit Acceptance from $450.00 to $500.00 and gave the company a "hold" rating in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $520.00.
Read Our Latest Report on Credit Acceptance
Institutional Trading of Credit Acceptance
A number of institutional investors and hedge funds have recently bought and sold shares of CACC. Royal Bank of Canada increased its stake 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 in the last quarter. AQR Capital Management LLC increased its stake in Credit Acceptance by 230.6% during the 1st quarter. AQR Capital Management LLC now owns 7,885 shares of the credit services provider's stock valued at $3,961,000 after purchasing an additional 5,500 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Credit Acceptance by 3.9% during the 1st 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 valued at $12,334,000 after purchasing an additional 900 shares in the last quarter. Creative Planning increased its stake in Credit Acceptance by 35.6% during the 2nd quarter. Creative Planning now owns 529 shares of the credit services provider's stock valued at $269,000 after purchasing an additional 139 shares in the last quarter. Finally, JPMorgan Chase & Co. increased its stake in Credit Acceptance by 4.8% during the 2nd quarter. JPMorgan Chase & Co. now owns 5,077 shares of the credit services provider's stock valued at $2,586,000 after purchasing an additional 232 shares in the last quarter. 81.71% of the stock is currently owned by institutional investors.
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.
Recommended Stories
This instant news alert was generated by narrative science technology and financial data from InsiderTrades.com in order to provide readers with the fastest and most accurate reporting. Please send any questions or comments about this story to [email protected].
