Insider Selling: Credit Acceptance (NASDAQ:CACC) COO Sells $3,600,000.00 in Stock

Credit Acceptance Corporation (NASDAQ:CACC) COO Jonathan Lum sold 6,000 shares of the stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $600.00, for a total transaction of $3,600,000.00. Following the completion of the sale, the chief operating officer owned 31,609 shares of the company’s stock, valued at approximately $18,965,400. The trade was a 15.95% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Jonathan Lum also recently made the following trade(s):

• On Monday, April 20th, Jonathan Lum sold 3,000 shares of Credit Acceptance stock. The stock was sold at an average price of $535.00, for a total value of $1,605,000.00.

Credit Acceptance Trading Up 0.1%

Shares of Credit Acceptance stock opened at $629.62 on Monday. The company has a debt-to-equity ratio of 4.09, a current ratio of 13.62 and a quick ratio of 13.62. The stock’s 50 day simple moving average is $548.53 and its 200-day simple moving average is $496.07. The stock has a market cap of $6.59 billion, a P/E ratio of 15.65 and a beta of 1.38. Credit Acceptance Corporation has a 1-year low of $401.90 and a 1-year high of $638.55.

Credit Acceptance (NASDAQ:CACC) last posted its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $10.71 EPS for the quarter, missing the consensus estimate of $10.73 by ($0.02). Credit Acceptance had a net margin of 19.49% and a return on equity of 29.95%. The company had revenue of $406.00 million during the quarter, compared to analyst estimates of $580.77 million. During the same period in the prior year, the business posted $9.35 EPS. Credit Acceptance’s revenue for the quarter was up 1.6% compared to the same quarter last year. Analysts predict that Credit Acceptance Corporation will post 47.5 EPS for the current fiscal year.

Wall Street Analyst Weigh In

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

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Altshuler Shaham Ltd grew its position in Credit Acceptance by 37.3% in the first quarter. Altshuler Shaham Ltd now owns 70 shares of the credit services provider’s stock worth $30,000 after acquiring an additional 19 shares during the period. Pictet Asset Management Holding SA lifted its stake in shares of Credit Acceptance by 2.1% in the 1st quarter. Pictet Asset Management Holding SA now owns 990 shares of the credit services provider’s stock valued at $419,000 after purchasing an additional 20 shares during the last quarter. Rockefeller Capital Management L.P. lifted its stake in shares of 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 valued at $31,000 after purchasing an additional 24 shares during the last quarter. Janney Montgomery Scott LLC grew its holdings in shares of Credit Acceptance by 4.6% during the 4th quarter. Janney Montgomery Scott LLC now owns 571 shares of the credit services provider’s stock worth $253,000 after purchasing an additional 25 shares during the period. Finally, Cetera Investment Advisers grew its holdings in shares of Credit Acceptance by 6.3% during the 4th quarter. Cetera Investment Advisers now owns 508 shares of the credit services provider’s stock worth $225,000 after purchasing an additional 30 shares during the period. 81.71% of the stock is currently owned by institutional investors and hedge funds.

About Credit Acceptance

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.