Credit Acceptance (NASDAQ:CACC) Shares Gap Up After Earnings Beat

Credit Acceptance Corporation (NASDAQ:CACC) shares gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $451.24, but opened at $485.00. Credit Acceptance shares last traded at $471.12, with a volume of 20,536 shares changing hands.

The credit services provider reported $11.35 earnings per share for the quarter, beating the consensus estimate of $10.30 by $1.05. Credit Acceptance had a net margin of 19.70% and a return on equity of 27.88%. The company had revenue of $408.20 million during the quarter, compared to analyst estimates of $582.63 million.

Credit Acceptance News Roundup

Here are the key news stories impacting Credit Acceptance this week:

• Positive Sentiment: Adjusted EPS topped estimates — Credit Acceptance reported adjusted EPS of $11.35 vs. the Zacks/Street consensus of $10.30, driven by strong adjusted net income of $126.0M (GAAP net income $122.0M). Investors often favor earnings beats, which likely supported the stock rally. Credit Acceptance (CACC) Q4 Earnings Beat Estimates
• Positive Sentiment: Management rolled out a “digital-first” growth plan — leadership positioned the company to stabilize and grow market share with digital origination and operational investments, which markets view as a constructive long-term revenue driver. Credit Acceptance outlines digital-first growth plan as loan volumes and market share stabilize
• Positive Sentiment: Profitability metrics remain healthy — the company reported a net margin ~19.7% and ROE ~27.9%, showing continued profitability even as volumes adjust. These metrics can support valuations on an earnings multiple basis. Credit Acceptance Announces Fourth Quarter 2025 Results
• Neutral Sentiment: Full earnings transcript available — the call transcript provides management commentary and color on originations, loss trends and capital allocation for investors wanting detail beyond the headline numbers. Credit Acceptance Corporation (CACC) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Pre-earnings analyst preview and local coverage summarized expectations and results — useful context but not market-moving on its own. What to Expect from Credit Acceptance’s Earnings
• Neutral Sentiment: Short-interest data appears inconsistent — a recent report showed an odd/zero-share reading for January that looks like a data glitch and offers little actionable signal. CACC Market Data
• Negative Sentiment: Revenue missed materially — reported revenue of $408.2M fell well short of the ~$582.6M consensus, signaling softer loan originations or timing issues; a sustained top-line shortfall could pressure the stock if management cannot translate the digital plan into revenue growth. Credit Acceptance Q4 earnings summary

Analysts Set New Price Targets

CACC has been the topic of a number of recent research reports. TD Cowen upgraded Credit Acceptance from a “sell” rating to a “hold” rating in a report on Thursday, January 8th. Weiss Ratings reiterated a “hold (c)” rating on shares of Credit Acceptance in a report on Wednesday, January 21st. Three analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $480.00.

Hedge Funds Weigh In On Credit Acceptance

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Allworth Financial LP grew its holdings in shares of Credit Acceptance by 141.9% during the 3rd quarter. Allworth Financial LP now owns 104 shares of the credit services provider’s stock worth $49,000 after purchasing an additional 61 shares in the last quarter. Vestcor Inc acquired a new position in Credit Acceptance in the third quarter worth about $50,000. Farther Finance Advisors LLC lifted its stake in Credit Acceptance by 20,200.0% during the third quarter. Farther Finance Advisors LLC now owns 203 shares of the credit services provider’s stock worth $95,000 after purchasing an additional 202 shares during the period. Raymond James Financial Inc. bought a new stake in shares of Credit Acceptance in the 2nd quarter valued at approximately $150,000. Finally, CFC Planning Co LLC acquired a new stake in Credit Acceptance in the 3rd quarter valued at $209,000. 81.71% of the stock is currently owned by institutional investors.

Credit Acceptance Stock Up 4.4%

The stock has a market capitalization of $5.20 billion, a P/E ratio of 12.47 and a beta of 1.24. The business has a 50-day simple moving average of $457.79 and a two-hundred day simple moving average of $474.95. The company has a quick ratio of 15.81, a current ratio of 15.81 and a debt-to-equity ratio of 3.94.

About Credit Acceptance

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.