Credit Acceptance (NASDAQ:CACC) Releases Earnings Results, Beats Expectations By $1.05 EPS

Credit Acceptance (NASDAQ:CACC) posted its earnings results on Thursday. The credit services provider reported $11.35 EPS for the quarter, topping the consensus estimate of $10.30 by $1.05, FiscalAI reports. Credit Acceptance had a net margin of 19.70% and a return on equity of 27.88%. The firm had revenue of $408.20 million during the quarter, compared to analysts’ expectations of $582.63 million.

Credit Acceptance Stock Up 4.1%

NASDAQ CACC traded up $17.81 during trading on Thursday, reaching $451.24. 240,853 shares of the company’s stock were exchanged, compared to its average volume of 151,986. The company has a current ratio of 15.81, a quick ratio of 15.81 and a debt-to-equity ratio of 3.94. Credit Acceptance has a fifty-two week low of $401.90 and a fifty-two week high of $560.00. The company’s fifty day simple moving average is $456.98 and its 200-day simple moving average is $475.12. The firm has a market capitalization of $4.98 billion, a PE ratio of 11.95 and a beta of 1.24.

Analyst Ratings Changes

Several brokerages recently commented on CACC. Weiss Ratings reissued a “hold (c)” rating on shares of Credit Acceptance in a report on Wednesday, January 21st. TD Cowen raised shares of Credit Acceptance from a “sell” rating to a “hold” rating in a research note on Thursday, January 8th. Three research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, Credit Acceptance currently has a consensus rating of “Hold” and an average target price of $480.00.

Institutional Investors Weigh In On Credit Acceptance

A number of institutional investors have recently modified their holdings of CACC. Vestcor Inc acquired a new stake in Credit Acceptance during the third quarter valued at $50,000. Raymond James Financial Inc. acquired a new position in shares of Credit Acceptance during the 2nd quarter valued at about $150,000. Prudential Financial Inc. acquired a new position in Credit Acceptance during the second quarter valued at approximately $215,000. Creative Planning grew its stake in Credit Acceptance by 8.1% in the 3rd quarter. Creative Planning now owns 572 shares of the credit services provider’s stock valued at $267,000 after buying an additional 43 shares during the last quarter. Finally, Mackenzie Financial Corp grew its position in shares of Credit Acceptance by 14.1% in the third quarter. Mackenzie Financial Corp now owns 721 shares of the credit services provider’s stock valued at $337,000 after purchasing an additional 89 shares during the last quarter. Institutional investors and hedge funds 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.