Credit Acceptance (NASDAQ:CACC) COO Jonathan Lum Sells 3,000 Shares of Stock

Credit Acceptance Corporation (NASDAQ:CACC) COO Jonathan Lum sold 3,000 shares of Credit Acceptance stock in a transaction dated Monday, April 20th. The shares were sold at an average price of $535.00, for a total transaction of $1,605,000.00. Following the transaction, the chief operating officer directly owned 31,609 shares of the company’s stock, valued at approximately $16,910,815. This trade 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 available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Credit Acceptance Trading Up 1.1%

Shares of NASDAQ CACC opened at $526.76 on Thursday. Credit Acceptance Corporation has a 1 year low of $401.90 and a 1 year high of $549.75. The stock has a market cap of $5.66 billion, a P/E ratio of 14.43 and a beta of 1.32. The firm has a 50-day moving average of $473.33 and a 200 day moving average of $468.05. The company has a debt-to-equity ratio of 4.10, a current ratio of 16.91 and a quick ratio of 16.91.

Credit Acceptance (NASDAQ:CACC) last issued its quarterly earnings results on Thursday, January 29th. The credit services provider reported $11.35 earnings per share (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 28.86%. The company had revenue of $408.20 million during the quarter, compared to analysts’ expectations of $582.63 million. During the same period last year, the company posted $10.17 EPS. Credit Acceptance’s revenue was up 2.5% on a year-over-year basis. As a group, sell-side analysts expect that Credit Acceptance Corporation will post 47 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the stock. TD Cowen lifted their price target on shares of Credit Acceptance from $460.00 to $470.00 and gave the company a “hold” rating in a research report on Friday, January 30th. Stephens raised their price objective on shares of Credit Acceptance from $450.00 to $540.00 and gave the company 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 note on Tuesday, February 3rd. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Credit Acceptance in a research note on Monday. One analyst has rated the stock with a Strong Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, Credit Acceptance currently has an average rating of “Moderate Buy” and an average price target of $505.00.

More Credit Acceptance News

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

Institutional Trading of Credit Acceptance

Institutional investors and hedge funds have recently bought and sold shares of the company. Allianz Asset Management GmbH increased its stake in Credit Acceptance by 21.3% during the 3rd quarter. Allianz Asset Management GmbH now owns 29,095 shares of the credit services provider’s stock valued at $13,585,000 after purchasing an additional 5,107 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH increased its stake in Credit Acceptance by 16.9% during the 3rd quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 23,575 shares of the credit services provider’s stock valued at $11,008,000 after purchasing an additional 3,400 shares in the last quarter. SG Americas Securities LLC increased its stake in Credit Acceptance by 430.3% during the 3rd quarter. SG Americas Securities LLC now owns 2,418 shares of the credit services provider’s stock valued at $1,129,000 after purchasing an additional 1,962 shares in the last quarter. Illinois Municipal Retirement Fund bought a new stake in Credit Acceptance during the 3rd quarter valued at about $697,000. Finally, Envestnet Asset Management Inc. increased its stake in Credit Acceptance by 8.0% during the 3rd quarter. Envestnet Asset Management Inc. now owns 34,990 shares of the credit services provider’s stock valued at $16,338,000 after purchasing an additional 2,583 shares in the last quarter. 81.71% of the stock is currently owned by institutional investors.

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.