Credit Acceptance (NASDAQ:CACC) Stock Crosses Below 200-Day Moving Average on Analyst Downgrade

Credit Acceptance Corporation (NASDAQ:CACC) shares crossed below its 200-day moving average during trading on Friday after TD Cowen lowered their price target on the stock from $590.00 to $470.00. The stock has a 200-day moving average of $537.42 and traded as low as $455.43. TD Cowen currently has a hold rating on the stock. Credit Acceptance shares last traded at $464.89, with a volume of 386,264 shares traded.

Separately, Weiss Ratings reissued a “buy (b-)” rating on shares of Credit Acceptance in a research note on Wednesday, October 14th. One equities research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $505.00.

Key Headlines Impacting Credit Acceptance

Here are the key news stories impacting Credit Acceptance this week:

• Positive Sentiment: Credit Acceptance reported third-quarter adjusted earnings of $13.01 per diluted share, above the $12.86 analyst consensus and up from $10.28 a year earlier. Adjusted net income increased to $135.5 million from $117.9 million. Credit Acceptance Announces Third Quarter 2026 Results
• Positive Sentiment: The company highlighted continued business activity, including a record number of dealers, while quarterly revenue increased 2.1% year over year. These trends suggest underlying operating momentum despite the quarter’s headline accounting loss. Credit Acceptance Q3 2026: Record Dealers, but a Forecast Change Stings
• Neutral Sentiment: TD Cowen lowered its price target from $590 to $470 and maintained a Hold rating. The new target implies only about 1.1% upside from the referenced trading level, signaling limited near-term valuation support. TD Cowen Stock Recommendations
• Negative Sentiment: On a GAAP basis, Credit Acceptance posted a $56.6 million net loss, or $5.43 per share, versus $108.2 million of net income a year earlier. The large gap between GAAP and adjusted results may be weighing on investor confidence.
• Negative Sentiment: Reported revenue of approximately $594.6 million was slightly below the $596.4 million FactSet estimate, tempering the adjusted-EPS beat. Credit Acceptance Q3 Revenue Earnings Flash
• Negative Sentiment: Block & Leviton announced an investigation into potential securities-law violations and is soliciting investors who incurred losses. Although the investigation does not establish wrongdoing, it adds legal and reputational risk to the stock. CACC Securities Fraud Investigation

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. purchased a new position in shares of Credit Acceptance in the second quarter worth about $408,849,000. Wellington Management Group LLP lifted its stake in shares of Credit Acceptance by 0.5% in the 2nd quarter. Wellington Management Group LLP now owns 260,084 shares of the credit services provider’s stock valued at $165,606,000 after acquiring an additional 1,186 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of 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 acquiring an additional 6,843 shares during the last quarter. Goodnow Investment Group LLC purchased a new stake in Credit Acceptance during the 2nd quarter valued at about $67,578,000. Finally, Bank of America Corp DE purchased a new stake in Credit Acceptance during the 2nd quarter valued at about $34,131,000. 81.71% of the stock is owned by institutional investors.

Credit Acceptance Price Performance

The firm has a fifty day moving average of $564.30 and a two-hundred day moving average of $537.42. The company has a current ratio of 14.89, a quick ratio of 14.89 and a debt-to-equity ratio of 3.84. The company has a market capitalization of $4.86 billion, a PE ratio of 15.18 and a beta of 1.40.

Credit Acceptance (NASDAQ:CACC) last announced its quarterly earnings results on Thursday, October 29th. The credit services provider reported $13.01 EPS for the quarter, topping analysts’ consensus estimates of $12.86 by $0.15. Credit Acceptance had a return on equity of 33.00% and a net margin of 14.39%. The business had revenue of $420.30 million for the quarter, compared to analysts’ expectations of $596.40 million. During the same period in the previous year, the firm earned $10.28 EPS. The business’s quarterly revenue was up 2.1% on a year-over-year basis. Research analysts anticipate that Credit Acceptance Corporation will post 47.64 EPS for the current fiscal year.

About Credit Acceptance

Credit Acceptance Corporation (NASDAQ:CACC) is a specialized automobile finance company that provides financing programs for consumers who may have difficulty obtaining credit through traditional lenders. The company primarily operates through an indirect lending model, working with automobile dealers who offer financing to customers purchasing new or used vehicles.

Credit Acceptance purchases or services automotive loans originated through its dealer-partner network. Its programs are designed to help dealers sell vehicles to a broader range of consumers, while the company manages loan underwriting, servicing, collections, and related risk-management activities.