Credit Acceptance (NASDAQ:CACC) Sets New 12-Month High – Here’s What Happened

Credit Acceptance Corporation (NASDAQ:CACC)’s share price hit a new 52-week high on Monday . The stock traded as high as $638.55 and last traded at $623.8750, with a volume of 208842 shares. The stock had previously closed at $628.86.

Wall Street Analyst Weigh In

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

Credit Acceptance Trading Up 0.1%

The firm’s 50-day simple moving average is $548.53 and its 200 day simple moving average is $496.07. The company has a debt-to-equity ratio of 4.09, a current ratio of 13.62 and a quick ratio of 13.62. The firm has a market capitalization of $6.58 billion, a price-to-earnings ratio of 15.64 and a beta of 1.38.

Credit Acceptance (NASDAQ:CACC) last issued its quarterly 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 business had revenue of $406.00 million during the quarter, compared to the consensus estimate of $580.77 million. During the same quarter in the previous year, the business posted $9.35 EPS. The company’s revenue for the quarter was up 1.6% on a year-over-year basis. Equities analysts expect that Credit Acceptance Corporation will post 47.5 earnings per share for the current year.

Insider Transactions at Credit Acceptance

In other news, major shareholder Jill Foss Watson sold 9,450 shares of the firm’s stock in a transaction that occurred on Tuesday, April 21st. The shares were sold at an average price of $538.52, for a total value of $5,089,014.00. Following the sale, the insider directly owned 92,107 shares in the company, valued at approximately $49,601,461.64. This trade represents a 9.31% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Kenneth Booth sold 4,000 shares of the firm’s stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $534.00, for a total transaction of $2,136,000.00. Following the completion of the sale, the director owned 22,832 shares in the company, valued at approximately $12,192,288. The trade was a 14.91% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 51,790 shares of company stock valued at $29,487,654. Company insiders own 6.10% of the company’s stock.

Hedge Funds Weigh In On Credit Acceptance

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. M&T Bank Corp acquired a new stake in Credit Acceptance in the fourth quarter valued at approximately $208,294,000. Boston Partners acquired a new position in shares of Credit Acceptance during the third quarter worth $206,327,000. Universal Beteiligungs und Servicegesellschaft mbH increased its holdings in shares of Credit Acceptance by 764.8% during the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 203,879 shares of the credit services provider’s stock worth $91,652,000 after buying an additional 180,304 shares in the last quarter. Smith Thomas W bought a new position in shares of Credit Acceptance in the 4th quarter valued at $42,083,000. Finally, Renaissance Technologies LLC lifted its stake in shares of Credit Acceptance by 1,078.0% in the 1st quarter. Renaissance Technologies LLC now owns 63,468 shares of the credit services provider’s stock valued at $26,876,000 after acquiring an additional 58,080 shares during the last quarter. Institutional investors 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.