Credit Acceptance (NASDAQ:CACC) Stock Gets Price Target Reduction from TD Cowen

Credit Acceptance (NASDAQ:CACC) had its price objective lowered by equities researchers at TD Cowen from $590.00 to $470.00 in a note issued to investors on Friday, Benzinga reports. The firm currently has a “hold” rating on the credit services provider’s stock. TD Cowen‘s price objective would indicate a potential upside of 1.30% from the stock’s current price.

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

Credit Acceptance Trading Down 19.4%

NASDAQ CACC traded down $111.80 on Friday, hitting $463.98. 280,958 shares of the stock were exchanged, compared to its average volume of 160,997. The company has a debt-to-equity ratio of 3.84, a quick ratio of 14.89 and a current ratio of 14.89. The stock has a fifty day moving average price of $566.72 and a two-hundred day moving average price of $537.43. The firm has a market capitalization of $4.85 billion, a P/E ratio of 10.25 and a beta of 1.40. Credit Acceptance has a 52-week low of $401.90 and a 52-week high of $668.86.

Credit Acceptance (NASDAQ:CACC) last announced its earnings results on Thursday, October 29th. The credit services provider reported $13.01 earnings per share for the quarter, beating the consensus estimate of $12.86 by $0.15. The business had revenue of $420.30 million for the quarter, compared to the consensus estimate of $596.40 million. Credit Acceptance had a net margin of 21.54% and a return on equity of 31.67%. The business’s revenue for the quarter was up 2.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $10.28 earnings per share. Research analysts forecast that Credit Acceptance will post 47.64 EPS for the current fiscal year.

Institutional Investors Weigh In On Credit Acceptance

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CACC. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in Credit Acceptance in the 3rd quarter worth about $467,000. Root Financial Partners LLC bought a new stake in shares of Credit Acceptance during the third quarter valued at approximately $35,000. Nisa Investment Advisors LLC boosted its holdings in shares of Credit Acceptance by 2.4% in the third quarter. Nisa Investment Advisors LLC now owns 3,074 shares of the credit services provider’s stock valued at $1,632,000 after purchasing an additional 73 shares during the period. Fortitude Family Office LLC boosted its holdings in shares of Credit Acceptance by 1,060.0% in the third quarter. Fortitude Family Office LLC now owns 116 shares of the credit services provider’s stock valued at $62,000 after purchasing an additional 106 shares during the period. Finally, GAMMA Investing LLC grew its stake in Credit Acceptance by 181.7% in the third quarter. GAMMA Investing LLC now owns 169 shares of the credit services provider’s stock worth $90,000 after purchasing an additional 109 shares in the last quarter. Institutional investors own 81.71% of the company’s stock.

Key Stories Impacting Credit Acceptance

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

• Positive Sentiment: Third-quarter adjusted earnings increased to $13.01 per diluted share from $10.28 a year earlier, exceeding the $12.86 analyst consensus. Adjusted net income rose to $135.5 million, while the company reported record dealer participation. Credit Acceptance Announces Third Quarter 2026 Results
• Neutral Sentiment: Third-quarter revenue rose 2.1% year over year to approximately $594.6 million, but fell slightly short of the roughly $596.4 million consensus estimate. The company’s outlook or forecast change may limit the benefit from the earnings beat. Credit Acceptance Q3 Revenue Earnings Flash
• Negative Sentiment: Credit Acceptance reported a $56.6 million GAAP net loss, or $5.43 per share, versus $108.2 million of net income a year earlier. The sharp gap between GAAP and adjusted results could raise concerns about unusual charges and earnings quality. Credit Acceptance Announces Third Quarter 2026 Results
• Negative Sentiment: Block & Leviton said it is investigating Credit Acceptance for potential securities-law violations and is soliciting investors who suffered losses. Although an investigation is not a finding of wrongdoing, the announcement adds legal and reputational risk and is likely the most immediate pressure on CACC shares. CACC Securities-Fraud Investigation Alert

Credit Acceptance Company Profile

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.