Credit Acceptance (NASDAQ:CACC) Reaches New 52-Week Low – Should You Sell?

Credit Acceptance Corporation (NASDAQ:CACC) hit a new 52-week low during mid-day trading on Thursday . The company traded as low as $401.90 and last traded at $421.1340, with a volume of 242571 shares traded. The stock had previously closed at $451.39.

Wall Street Analysts Forecast Growth

CACC has been the topic of a number of recent research reports. Cowen reissued a “sell” rating on shares of Credit Acceptance in a report on Friday, October 31st. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Credit Acceptance in a report on Wednesday, October 8th. Finally, TD Cowen cut their price target on Credit Acceptance from $450.00 to $430.00 and set a “sell” rating on the stock in a report on Friday, October 31st. Two equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Credit Acceptance currently has an average rating of “Reduce” and an average target price of $465.00.

Credit Acceptance Stock Performance

The stock has a market cap of $4.62 billion, a P/E ratio of 12.06 and a beta of 1.16. The company has a fifty day moving average of $491.22 and a 200 day moving average of $493.71. The company has a debt-to-equity ratio of 4.16, a current ratio of 22.03 and a quick ratio of 22.03.

Credit Acceptance (NASDAQ:CACC) last announced its earnings results on Thursday, October 30th. The credit services provider reported $10.28 EPS for the quarter, topping the consensus estimate of $9.61 by $0.67. Credit Acceptance had a return on equity of 27.06% and a net margin of 18.69%.The firm had revenue of $582.40 million for the quarter, compared to analysts’ expectations of $592.19 million. During the same quarter in the previous year, the company earned $9.25 earnings per share. The firm’s quarterly revenue was up 5.8% compared to the same quarter last year. On average, equities analysts predict that Credit Acceptance Corporation will post 53.24 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Credit Acceptance news, COO Jonathan Lum sold 6,000 shares of Credit Acceptance stock in a transaction that occurred on Monday, August 25th. The shares were sold at an average price of $512.61, for a total value of $3,075,660.00. Following the transaction, the chief operating officer owned 31,493 shares in the company, valued at approximately $16,143,626.73. The trade was a 16.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Kenneth Booth sold 4,000 shares of Credit Acceptance stock in a transaction that occurred on Thursday, September 18th. The stock was sold at an average price of $506.59, for a total transaction of $2,026,360.00. Following the completion of the transaction, the chief executive officer owned 68,116 shares in the company, valued at approximately $34,506,884.44. This trade represents a 5.55% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 13,697 shares of company stock worth $6,981,255. 6.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Mraz Amerine & Associates Inc. grew its position in Credit Acceptance by 0.8% in the third quarter. Mraz Amerine & Associates Inc. now owns 13,432 shares of the credit services provider’s stock worth $6,272,000 after buying an additional 107 shares during the last quarter. Illinois Municipal Retirement Fund purchased a new position in Credit Acceptance during the 3rd quarter worth approximately $697,000. Caprock Group LLC purchased a new position in Credit Acceptance during the 3rd quarter worth approximately $298,000. Envestnet Asset Management Inc. grew its position in Credit Acceptance by 8.0% during the 3rd quarter. Envestnet Asset Management Inc. now owns 34,990 shares of the credit services provider’s stock worth $16,338,000 after purchasing an additional 2,583 shares in the last quarter. Finally, Allianz Asset Management GmbH grew its position in Credit Acceptance by 21.3% during the 3rd quarter. Allianz Asset Management GmbH now owns 29,095 shares of the credit services provider’s stock worth $13,585,000 after purchasing an additional 5,107 shares in the last quarter. Institutional investors and hedge funds own 81.71% of the company’s stock.

Credit Acceptance Company Profile

Credit Acceptance Corporation engages in the provision of financing programs, and related products and services in the United States. The company advances money to automobile dealers in exchange for the right to service the underlying consumer loans; and buys the consumer loans from the dealers and keeps the amount collected from the consumers.