Credit Acceptance (NASDAQ:CACC) Sets New 1-Year High – What’s Next?

Credit Acceptance Corporation (NASDAQ:CACC) shares reached a new 52-week high during trading on Monday . The company traded as high as $667.00 and last traded at $662.8750, with a volume of 15462 shares. The stock had previously closed at $657.12.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on CACC shares. TD Cowen raised their price target on Credit Acceptance from $500.00 to $575.00 and gave the stock a “hold” rating in a research note on Tuesday. Zacks Research downgraded Credit Acceptance from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 13th. Stephens upped 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. Finally, Weiss Ratings raised shares of Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, May 8th. Four equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $557.50.

Credit Acceptance Trading Down 1.6%

The company has a quick ratio of 13.62, a current ratio of 13.62 and a debt-to-equity ratio of 4.09. The company’s fifty day moving average price is $566.61 and its two-hundred day moving average price is $505.13. The firm has a market cap of $6.76 billion, a PE ratio of 16.07 and a beta of 1.36.

Credit Acceptance (NASDAQ:CACC) last announced its quarterly earnings data on Tuesday, May 5th. The credit services provider reported $10.71 EPS for the quarter, missing analysts’ consensus estimates 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 quarter in the previous year, the business earned $9.35 EPS. Credit Acceptance’s revenue for the quarter was up 1.6% on a year-over-year basis. As a group, sell-side analysts forecast that Credit Acceptance Corporation will post 47.5 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Credit Acceptance news, insider Erin J. Kerber sold 8,656 shares of the business’s stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $600.94, for a total transaction of $5,201,736.64. Following the sale, the insider directly owned 25,711 shares in the company, valued at approximately $15,450,768.34. The trade was a 25.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jonathan Lum sold 6,000 shares of the business’s stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $600.00, for a total transaction of $3,600,000.00. Following the completion of the sale, the chief operating officer owned 31,609 shares in the company, valued at $18,965,400. This represents a 15.95% 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. Over the last three months, insiders have sold 70,816 shares of company stock worth $41,728,507. Insiders own 6.10% of the company’s stock.

Institutional Investors Weigh In On Credit Acceptance

A number of large investors have recently bought and sold shares of CACC. M&T Bank Corp acquired a new stake in shares of Credit Acceptance during the fourth quarter valued at $208,294,000. Boston Partners raised its stake in Credit Acceptance by 3.4% in the 4th quarter. Boston Partners now owns 456,253 shares of the credit services provider’s stock valued at $202,373,000 after purchasing an additional 14,877 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in Credit Acceptance by 3.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 230,715 shares of the credit services provider’s stock valued at $97,701,000 after purchasing an additional 6,843 shares in the last quarter. Smead Capital Management Inc. boosted its stake in shares of Credit Acceptance by 17.0% during the 2nd quarter. Smead Capital Management Inc. now owns 216,811 shares of the credit services provider’s stock worth $110,450,000 after purchasing an additional 31,438 shares during the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH boosted its stake 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 worth $91,652,000 after purchasing an additional 180,304 shares during the last quarter. Institutional investors and hedge funds own 81.71% of the company’s stock.

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.