Credit Acceptance (NASDAQ:CACC) Insider Sells 5,720 Shares of Stock

Credit Acceptance Corporation (NASDAQ:CACC) insider Erin Kerber sold 5,720 shares of the business’s stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $629.80, for a total transaction of $3,602,456.00. Following the transaction, the insider owned 25,711 shares of the company’s stock, valued at approximately $16,192,787.80. This represents a 18.20% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Credit Acceptance Price Performance

Shares of CACC stock traded down $1.49 during trading hours on Tuesday, reaching $636.74. The company’s stock had a trading volume of 110,294 shares, compared to its average volume of 191,478. Credit Acceptance Corporation has a fifty-two week low of $401.90 and a fifty-two week high of $645.00. The firm’s 50 day simple moving average is $551.40 and its 200-day simple moving average is $497.32. The company has a quick ratio of 13.62, a current ratio of 13.62 and a debt-to-equity ratio of 4.09. The company has a market capitalization of $6.66 billion, a price-to-earnings ratio of 15.82 and a beta of 1.38.

Credit Acceptance (NASDAQ:CACC) last announced its quarterly earnings data on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share for the quarter, missing the consensus estimate of $10.73 by ($0.02). The business 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%.Credit Acceptance’s quarterly revenue was up 1.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $9.35 earnings per share. Sell-side analysts forecast that Credit Acceptance Corporation will post 47.5 earnings per share for the current year.

Wall Street Analyst Weigh In

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

Institutional Trading of Credit Acceptance

A number of hedge funds have recently made changes to their positions in CACC. M&T Bank Corp bought a new position in Credit Acceptance in the 4th quarter valued at approximately $208,294,000. Boston Partners bought a new stake in Credit Acceptance during the 3rd quarter worth approximately $206,327,000. Universal Beteiligungs und Servicegesellschaft mbH increased its position in 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 acquiring an additional 180,304 shares during the period. Smith Thomas W acquired a new position in Credit Acceptance in the 4th quarter valued at approximately $42,083,000. Finally, Renaissance Technologies LLC raised its stake in shares of Credit Acceptance by 1,078.0% during the first quarter. Renaissance Technologies LLC now owns 63,468 shares of the credit services provider’s stock valued at $26,876,000 after acquiring an additional 58,080 shares during the last quarter. 81.71% of the stock is owned by institutional investors and hedge funds.

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.