Credit Acceptance (NASDAQ:CACC) Downgraded by Zacks Research to “Strong Sell”

Zacks Research downgraded shares of Credit Acceptance (NASDAQ:CACC) from a hold rating to a strong sell rating in a research report report published on Tuesday,Zacks reports.

A number of other analysts have also commented on the company. TD Cowen dropped their price target on Credit Acceptance from $590.00 to $470.00 and set a “hold” rating for the company in a research note on Friday, October 30th. Weiss Ratings cut Credit Acceptance from a “buy (b-)” rating to a “hold (c)” rating in a research note on Monday. Three research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Reduce” and a consensus price target of $505.00.

Credit Acceptance Stock Performance

Shares of CACC opened at $498.68 on Tuesday. Credit Acceptance has a 12-month low of $401.90 and a 12-month high of $668.86. The company has a current ratio of 13.49, a quick ratio of 13.49 and a debt-to-equity ratio of 4.68. The company has a market cap of $5.06 billion, a PE ratio of 16.29 and a beta of 1.45. The stock has a 50-day moving average price of $557.42 and a 200-day moving average price of $537.69.

Credit Acceptance (NASDAQ:CACC) last posted its quarterly earnings data on Thursday, October 29th. The credit services provider reported $13.01 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $12.86 by $0.15. Credit Acceptance had a return on equity of 33.84% and a net margin of 14.39%. The firm had revenue of $420.30 million during the quarter, compared to analysts’ expectations of $596.40 million. During the same period in the prior year, the business earned $10.28 EPS. The company’s revenue for the quarter was up 2.1% compared to the same quarter last year. As a group, equities analysts forecast that Credit Acceptance will post 47.61 earnings per share for the current fiscal year.

Institutional Trading of Credit Acceptance

Institutional investors and hedge funds have recently modified their holdings of the business. AlphaCore Capital LLC bought a new position in Credit Acceptance during the 3rd quarter valued at about $586,000. Fulcrum Asset Management LLP boosted its holdings in shares of Credit Acceptance by 888.2% during the 3rd quarter. Fulcrum Asset Management LLP now owns 6,720 shares of the credit services provider’s stock valued at $3,609,000 after acquiring an additional 6,040 shares during the last quarter. Pictet Asset Management Holding SA boosted its holdings in shares of Credit Acceptance by 7.8% during the 3rd quarter. Pictet Asset Management Holding SA now owns 830 shares of the credit services provider’s stock valued at $441,000 after acquiring an additional 60 shares during the last quarter. Parallel Advisors LLC boosted its holdings in shares of Credit Acceptance by 342.9% during the 3rd quarter. Parallel Advisors LLC now owns 62 shares of the credit services provider’s stock valued at $33,000 after acquiring an additional 48 shares during the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of Credit Acceptance in the third quarter worth approximately $467,000. Institutional investors own 81.71% of the company’s stock.

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.