Credit Acceptance (NASDAQ:CACC) Stock Price Down 4.3% – Here’s Why

Shares of Credit Acceptance Corporation (NASDAQ:CACC) fell 4.3% during mid-day trading on Thursday . The company traded as low as $536.75 and last traded at $533.1180. 16,985 shares changed hands during trading, a decline of 91% from the average session volume of 184,432 shares. The stock had previously closed at $557.21.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on CACC. Stephens upped their price target on Credit Acceptance from $450.00 to $540.00 and gave the stock an “equal weight” rating in a research report on Friday, April 17th. Weiss Ratings raised Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, May 8th. Zacks Research downgraded Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, May 13th. Finally, TD Cowen upped their target price on Credit Acceptance from $450.00 to $500.00 and gave the company a “hold” rating in a research report on Wednesday, May 6th. Four analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $520.00.

Credit Acceptance Stock Performance

The company has a current ratio of 13.62, a quick ratio of 13.62 and a debt-to-equity ratio of 4.09. The firm has a 50-day moving average of $522.33 and a 200-day moving average of $486.63. The stock has a market capitalization of $5.73 billion, a price-to-earnings ratio of 13.62 and a beta of 1.38.

Credit Acceptance (NASDAQ:CACC) last released its earnings results on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share (EPS) for the quarter, missing the consensus estimate of $10.73 by ($0.02). Credit Acceptance had a net margin of 19.49% and a return on equity of 29.95%. The firm had revenue of $406.00 million during the quarter, compared to analyst estimates of $580.77 million. During the same period in the previous year, the company earned $9.35 earnings per share. Credit Acceptance’s revenue was up 1.6% on a year-over-year basis. As a group, sell-side analysts predict that Credit Acceptance Corporation will post 47.5 earnings per share for the current year.

Insider Activity

In related news, Director Kenneth Booth sold 4,000 shares of the firm’s stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $534.00, for a total transaction of $2,136,000.00. Following the sale, the director directly owned 22,832 shares of the company’s stock, valued at $12,192,288. This trade represents a 14.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jonathan Lum sold 3,000 shares of the firm’s stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $535.00, for a total value of $1,605,000.00. Following the sale, the chief operating officer directly owned 31,609 shares in the company, valued at approximately $16,910,815. This trade represents a 8.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 26,527 shares of company stock valued at $14,203,265 over the last 90 days. Company insiders own 6.10% of the company’s stock.

Institutional Trading of Credit Acceptance

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Illinois Municipal Retirement Fund acquired a new stake in Credit Acceptance during the third quarter worth about $697,000. State of Alaska Department of Revenue acquired a new stake in shares of Credit Acceptance during the 4th quarter valued at about $462,000. M&T Bank Corp acquired a new stake in shares of Credit Acceptance during the 4th quarter valued at about $208,294,000. Envestnet Asset Management Inc. grew its position in shares of 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 acquiring an additional 2,583 shares during the period. Finally, Universal Beteiligungs und Servicegesellschaft mbH grew its position in shares of Credit Acceptance by 764.8% during the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 203,879 shares of the credit services provider’s stock valued at $91,652,000 after acquiring an additional 180,304 shares during the period. 81.71% of the stock is owned by institutional investors and hedge funds.

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.