Credit Acceptance (NASDAQ:CACC) Shares Down 4.3% – Time to Sell?

Credit Acceptance Corporation (NASDAQ:CACC) shares dropped 4.3% during mid-day trading on Thursday . The stock traded as low as $536.75 and last traded at $533.1180. Approximately 16,985 shares were traded during mid-day trading, a decline of 91% from the average daily volume of 184,432 shares. The stock had previously closed at $557.21.

Analyst Ratings Changes

CACC has been the topic of several recent analyst reports. Zacks Research lowered Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 13th. Stephens lifted their price target on Credit Acceptance from $450.00 to $540.00 and gave the company an “equal weight” rating in a research note on Friday, April 17th. Weiss Ratings upgraded Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, May 8th. Finally, TD Cowen lifted their price target on Credit Acceptance from $450.00 to $500.00 and gave the company a “hold” rating in a research note on Wednesday, May 6th. Four analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $520.00.

Credit Acceptance Price Performance

The firm has a market cap of $5.59 billion, a P/E ratio of 13.33 and a beta of 1.38. The company has a current ratio of 13.62, a quick ratio of 13.62 and a debt-to-equity ratio of 4.09. The business has a 50-day moving average of $517.25 and a two-hundred day moving average of $485.34.

Credit Acceptance (NASDAQ:CACC) last issued its quarterly earnings data on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share for the quarter, missing analysts’ consensus estimates of $10.73 by ($0.02). The firm had revenue of $406.00 million for the quarter, compared to the consensus estimate of $580.77 million. Credit Acceptance had a return on equity of 29.95% and a net margin of 19.49%.The company’s revenue was up 1.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $9.35 EPS. On average, sell-side analysts anticipate that Credit Acceptance Corporation will post 47.5 earnings per share for the current fiscal year.

Insider Buying and Selling at Credit Acceptance

In related news, COO Jonathan Lum sold 3,000 shares of the business’s stock in a transaction on Monday, April 20th. The stock was sold at an average price of $535.00, for a total transaction of $1,605,000.00. Following the sale, the chief operating officer owned 31,609 shares in the company, valued at $16,910,815. The trade was a 8.67% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kenneth Booth sold 4,000 shares of the business’s stock in a transaction on Monday, April 20th. The stock was sold at an average price of $534.00, for a total value of $2,136,000.00. Following the sale, the director owned 22,832 shares in the company, valued at $12,192,288. This represents a 14.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 26,527 shares of company stock worth $14,203,265 over the last three months. 6.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Credit Acceptance

Hedge funds and other institutional investors have recently bought and sold shares of the company. M&T Bank Corp bought a new stake in shares of Credit Acceptance in the 4th quarter valued at about $208,294,000. Boston Partners grew its position in shares of Credit Acceptance by 3.4% in the 4th quarter. Boston Partners now owns 456,253 shares of the credit services provider’s stock valued at $202,373,000 after buying an additional 14,877 shares during the last quarter. Dimensional Fund Advisors LP grew its position in shares of Credit Acceptance by 3.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 230,715 shares of the credit services provider’s stock valued at $97,701,000 after buying an additional 6,843 shares during the last quarter. Smead Capital Management Inc. grew its position in shares of Credit Acceptance by 17.0% in the 2nd quarter. Smead Capital Management Inc. now owns 216,811 shares of the credit services provider’s stock valued at $110,450,000 after buying an additional 31,438 shares during the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH grew its position in shares of Credit Acceptance by 764.8% in the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 203,879 shares of the credit services provider’s stock valued at $91,652,000 after buying an additional 180,304 shares during the last quarter. Institutional investors 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.