Ruane Cunniff & Goldfarb L.P. Decreases Holdings in Credit Acceptance Corporation $CACC

Ruane Cunniff & Goldfarb L.P. decreased its stake in Credit Acceptance Corporation (NASDAQ:CACC) by 72.7% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The firm owned 146,203 shares of the credit services provider’s stock after selling 389,929 shares during the period. Credit Acceptance accounts for about 1.0% of Ruane Cunniff & Goldfarb L.P.’s holdings, making the stock its 20th biggest position. Ruane Cunniff & Goldfarb L.P. owned about 1.40% of Credit Acceptance worth $61,911,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. State of Wyoming bought a new stake in shares of Credit Acceptance in the 4th quarter worth approximately $27,000. Kestra Advisory Services LLC bought a new position in Credit Acceptance during the fourth quarter valued at $27,000. Parallel Advisors LLC grew its holdings in Credit Acceptance by 590.0% during the first quarter. Parallel Advisors LLC now owns 69 shares of the credit services provider’s stock valued at $29,000 after purchasing an additional 59 shares during the period. Rockefeller Capital Management L.P. increased its position in Credit Acceptance by 53.3% in the fourth quarter. Rockefeller Capital Management L.P. now owns 69 shares of the credit services provider’s stock worth $31,000 after buying an additional 24 shares during the last quarter. Finally, Allworth Financial LP increased its position in Credit Acceptance by 141.9% in the third quarter. Allworth Financial LP now owns 104 shares of the credit services provider’s stock worth $49,000 after buying an additional 61 shares during the last quarter. 81.71% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, insider Erin J. Kerber sold 8,656 shares of the stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $600.94, for a total transaction of $5,201,736.64. Following the sale, the insider owned 25,711 shares of the company’s stock, valued at approximately $15,450,768.34. This represents a 25.19% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Jill Foss Watson sold 11,000 shares of the firm’s stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $653.24, for a total value of $7,185,640.00. Following the completion of the transaction, the insider owned 49,346 shares of the company’s stock, valued at approximately $32,234,781.04. This represents a 18.23% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 47,304 shares of company stock valued at $29,186,331 in the last 90 days. Corporate insiders own 6.10% of the company’s stock.

Wall Street Analyst Weigh In

CACC has been the topic of a number of recent research reports. Stephens upped their price target on Credit Acceptance from $450.00 to $540.00 and gave the company an “equal weight” rating in a research report on Friday, April 17th. Weiss Ratings upgraded Credit Acceptance from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, July 16th. TD Cowen lifted their price objective on Credit Acceptance from $500.00 to $575.00 and gave the stock a “hold” rating in a report on Tuesday, July 7th. Finally, Zacks Research cut Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 13th. One equities research analyst has rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $557.50.

Credit Acceptance Stock Down 3.7%

CACC opened at $552.73 on Tuesday. Credit Acceptance Corporation has a 12 month low of $401.90 and a 12 month high of $668.86. The company has a market cap of $5.78 billion, a PE ratio of 13.74 and a beta of 1.36. 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 company has a 50 day moving average of $590.55 and a 200 day moving average of $520.56.

Credit Acceptance (NASDAQ:CACC) last issued its earnings results on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 net margin of 19.49% and a return on equity of 29.95%. The company’s revenue was up 1.6% compared to the same quarter last year. During the same period in the previous year, the firm earned $9.35 EPS. On average, sell-side analysts expect that Credit Acceptance Corporation will post 47.5 EPS for the current year.

Credit Acceptance 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.