Credit Acceptance (NASDAQ:CACC) Hits New 1-Year High – Here’s Why

Credit Acceptance Corporation (NASDAQ:CACC)’s share price hit a new 52-week high on Wednesday . The company traded as high as $565.14 and last traded at $552.8310, with a volume of 69852 shares changing hands. The stock had previously closed at $525.67.

Analysts Set New Price Targets

CACC has been the subject of a number of research reports. TD Cowen increased their price target on shares of Credit Acceptance from $450.00 to $500.00 and gave the company a “hold” rating in a report on Wednesday. Stephens increased their price target on shares of Credit Acceptance from $450.00 to $540.00 and gave the company an “equal weight” rating in a report on Friday, April 17th. Weiss Ratings reissued a “hold (c)” rating on shares of Credit Acceptance in a report on Monday, April 20th. Finally, Zacks Research raised shares of Credit Acceptance from a “hold” rating to a “strong-buy” rating in a report on Tuesday, February 3rd. One analyst has rated the stock with a Strong Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, Credit Acceptance currently has an average rating of “Moderate Buy” and an average target price of $520.00.

Credit Acceptance Stock Up 0.6%

The stock has a market capitalization of $5.50 billion, a P/E ratio of 13.07 and a beta of 1.36. The firm’s fifty day moving average is $478.16 and its 200-day moving average is $469.49. The company has a current ratio of 13.62, a quick ratio of 16.91 and a debt-to-equity ratio of 4.09.

Credit Acceptance (NASDAQ:CACC) last posted its quarterly earnings data on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share for the quarter, missing the consensus estimate of $10.73 by ($0.02). The company had revenue of $406.00 million during the quarter, compared to analyst estimates of $580.77 million. Credit Acceptance had a net margin of 19.49% and a return on equity of 29.95%. The company’s revenue was up 1.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $9.35 EPS. As a group, equities research analysts predict that Credit Acceptance Corporation will post 47 earnings per share for the current year.

Insider Transactions at Credit Acceptance

In other Credit Acceptance news, COO Jonathan Lum sold 3,000 shares of the firm’s stock in a transaction dated Monday, April 20th. The shares were sold at an average price of $535.00, for a total value of $1,605,000.00. Following the completion of the sale, the chief operating officer owned 31,609 shares in the company, valued at approximately $16,910,815. This trade represents a 8.67% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Jill Foss Watson sold 9,450 shares of the firm’s stock in a transaction dated Tuesday, April 21st. The shares were sold at an average price of $538.52, for a total transaction of $5,089,014.00. Following the completion of the sale, the insider owned 92,107 shares of the company’s stock, valued at $49,601,461.64. The trade was a 9.31% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 29,852 shares of company stock worth $15,782,643. Corporate insiders own 6.60% of the company’s stock.

Institutional Investors Weigh In On Credit Acceptance

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Royal Bank of Canada grew its position in shares of 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 worth $989,000 after buying an additional 460 shares during the period. AQR Capital Management LLC grew its position in Credit Acceptance by 230.6% in the first 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% in 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 buying an additional 900 shares during the last quarter. Creative Planning lifted its position in Credit Acceptance by 35.6% during the 2nd quarter. Creative Planning now owns 529 shares of the credit services provider’s stock worth $269,000 after buying an additional 139 shares in the last quarter. Finally, JPMorgan Chase & Co. boosted its stake in shares of Credit Acceptance by 4.8% during the 2nd quarter. JPMorgan Chase & Co. now owns 5,077 shares of the credit services provider’s stock worth $2,586,000 after buying an additional 232 shares during the last quarter. Institutional investors and hedge funds own 81.71% of the company’s stock.

Credit Acceptance Company Profile

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.