Redwood Investment Management LLC Acquires Shares of 1,819 Credit Acceptance Corporation $CACC

Redwood Investment Management LLC bought a new stake in Credit Acceptance Corporation (NASDAQ:CACC) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 1,819 shares of the credit services provider’s stock, valued at approximately $1,158,000.

Several other institutional investors have also recently made changes to their positions in the company. Versant Capital Management Inc boosted its stake in shares of Credit Acceptance by 587.5% during the 2nd quarter. Versant Capital Management Inc now owns 55 shares of the credit services provider’s stock worth $35,000 after purchasing an additional 47 shares during the period. State of Wyoming bought a new position in Credit Acceptance during the 4th quarter valued at about $27,000. Kestra Advisory Services LLC purchased a new stake in Credit Acceptance in the 4th quarter worth about $27,000. Rockefeller Capital Management L.P. raised its position in Credit Acceptance by 53.3% in the 4th quarter. Rockefeller Capital Management L.P. now owns 69 shares of the credit services provider’s stock worth $31,000 after purchasing an additional 24 shares during the period. Finally, Parallel Advisors LLC lifted its stake in Credit Acceptance by 590.0% in the first quarter. Parallel Advisors LLC now owns 69 shares of the credit services provider’s stock worth $29,000 after purchasing an additional 59 shares during the last quarter. Institutional investors own 81.71% of the company’s stock.

Credit Acceptance Price Performance

Shares of CACC stock opened at $593.64 on Thursday. Credit Acceptance Corporation has a twelve month low of $401.90 and a twelve month high of $668.86. The stock has a market capitalization of $6.21 billion, a price-to-earnings ratio of 13.05 and a beta of 1.37. The stock has a fifty day simple moving average of $601.72 and a two-hundred day simple moving average of $538.13. The company has a current ratio of 14.89, a quick ratio of 14.89 and a debt-to-equity ratio of 3.84.

Credit Acceptance (NASDAQ:CACC) last announced its quarterly earnings results on Tuesday, August 4th. The credit services provider reported $12.12 EPS for the quarter, missing the consensus estimate of $12.20 by ($0.08). The firm had revenue of $415.00 million for the quarter, compared to analysts’ expectations of $588.07 million. Credit Acceptance had a net margin of 21.54% and a return on equity of 31.67%. The business’s quarterly revenue was up .6% on a year-over-year basis. During the same quarter in the prior year, the business posted $10.05 EPS. On average, analysts predict that Credit Acceptance Corporation will post 47.8 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

CACC has been the subject of several recent analyst reports. Weiss Ratings upgraded Credit Acceptance from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, July 16th. TD Cowen increased their price target on Credit Acceptance from $575.00 to $600.00 and gave the stock a “hold” rating in a report on Wednesday, August 5th. Finally, Zacks Research cut Credit Acceptance from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 13th. One analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Credit Acceptance presently has a consensus rating of “Hold” and a consensus price target of $570.00.

Insider Activity at Credit Acceptance

In other Credit Acceptance news, insider Nicholas J. Elliott sold 3,487 shares of the stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $601.01, for a total transaction of $2,095,721.87. Following the transaction, the insider directly owned 20,897 shares in the company, valued at $12,559,305.97. This represents a 14.30% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Erin J. Kerber sold 8,656 shares of the firm’s stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $600.94, for a total transaction of $5,201,736.64. Following the transaction, the insider directly owned 25,711 shares in the company, valued at $15,450,768.34. This trade represents a 25.19% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 44,289 shares of company stock worth $27,525,241 over the last quarter. Corporate insiders own 6.10% 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.