Credit Acceptance Corp. (CACC) Debt Trading 0.6% Lower Insider Trade
An issue of Credit Acceptance Corp. (NASDAQ:CACC) bonds fell 0.6% against their face value during trading on Wednesday following insider selling activity. The debt issue has a 6.125% coupon and will mature on February 15, 2021. The bonds in the issue are now trading at $100.63 and were trading at $101.25 last week. Price moves in a company’s bonds in credit markets often predict parallel moves in its stock price. Specifically, major shareholder Jill Foss Watson sold 240,000 shares of Credit Acceptance Corp. stock in a transaction on Monday, September 26th. The stock was sold at an average price of $197.50, for a total value of $47,400,000.00. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 25.20% of the stock is owned by corporate insiders.
A number of brokerages recently weighed in on CACC. Zacks Investment Research upgraded Credit Acceptance Corp. from a “hold” rating to a “strong-buy” rating and set a $226.00 target price on the stock in a report on Wednesday, August 3rd. Compass Point raised their price objective on Credit Acceptance Corp. from $160.00 to $170.00 and gave the company a “neutral” rating in a research report on Monday, August 1st. Janney Montgomery Scott reissued a “hold” rating on shares of Credit Acceptance Corp. in a research report on Thursday, September 22nd. Finally, Credit Suisse Group AG lowered Credit Acceptance Corp. from a “neutral” rating to an “underperform” rating and cut their price objective for the company from $200.00 to $185.00 in a research report on Wednesday, July 27th. Six analysts have rated the stock with a sell rating, two have assigned a hold rating and one has assigned a strong buy rating to the company. Credit Acceptance Corp. currently has an average rating of “Hold” and a consensus price target of $179.15.
The firm has a market cap of $3.98 billion, a price-to-earnings ratio of 12.91 and a beta of 0.67. The stock has a 50 day moving average price of $199.04 and a 200 day moving average price of $188.92.
Credit Acceptance Corp. (NASDAQ:CACC) last posted its quarterly earnings results on Friday, July 29th. The company reported $4.38 EPS for the quarter, beating the consensus estimate of $3.86 by $0.52. Credit Acceptance Corp. had a net margin of 35.03% and a return on equity of 33.91%. The business had revenue of $238.50 million for the quarter, compared to analysts’ expectations of $232.40 million. During the same period in the previous year, the company posted $3.60 EPS. Credit Acceptance Corp.’s revenue was up 17.4% on a year-over-year basis. On average, equities research analysts predict that Credit Acceptance Corp. will post $16.02 EPS for the current year.
Institutional investors have recently bought and sold shares of the stock. Abrams Bison Investments LLC boosted its position in Credit Acceptance Corp. by 9.8% in the first quarter. Abrams Bison Investments LLC now owns 1,091,474 shares of the company’s stock valued at $198,157,000 after buying an additional 97,235 shares in the last quarter. BloombergSen Inc. boosted its position in Credit Acceptance Corp. by 0.9% in the second quarter. BloombergSen Inc. now owns 813,537 shares of the company’s stock valued at $150,569,000 after buying an additional 6,998 shares in the last quarter. Vanguard Group Inc. boosted its position in Credit Acceptance Corp. by 7.1% in the second quarter. Vanguard Group Inc. now owns 719,102 shares of the company’s stock valued at $133,091,000 after buying an additional 47,735 shares in the last quarter. Beck Mack & Oliver LLC boosted its position in Credit Acceptance Corp. by 3.5% in the second quarter. Beck Mack & Oliver LLC now owns 347,490 shares of the company’s stock valued at $64,314,000 after buying an additional 11,725 shares in the last quarter. Finally, Makaira Partners LLC bought a new position in Credit Acceptance Corp. during the second quarter valued at approximately $37,941,000. Institutional investors and hedge funds own 47.43% of the company’s stock.
About Credit Acceptance Corp.
Credit Acceptance Corporation (Credit Acceptance) is a provider of financing programs to automobile dealers that enable them to sell vehicles to consumers. The Company’s financing programs are offered through a nationwide network of automobile dealers; from repeat and referral sales generated by customers, and from sales to customers responding to advertisements for it products.
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