Credit Acceptance (NASDAQ:CACC) Stock Passes Above Two Hundred Day Moving Average – Should You Sell?

Shares of Credit Acceptance Corporation (NASDAQ:CACC) passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $533.82 and traded as high as $579.60. Credit Acceptance shares last traded at $570.54, with a volume of 86,479 shares trading hands.

Analysts Set New Price Targets

A number of research analysts recently issued reports on CACC shares. Zacks Research cut shares of Credit Acceptance from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 13th. TD Cowen increased their target price on shares of Credit Acceptance from $575.00 to $600.00 and gave the stock a “hold” rating in a report on Wednesday, August 5th. Finally, Weiss Ratings raised shares of Credit Acceptance from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, July 16th. One analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $570.00.

Credit Acceptance Price Performance

The company has a current ratio of 14.89, a quick ratio of 14.89 and a debt-to-equity ratio of 3.84. The firm has a market cap of $6.13 billion, a P/E ratio of 12.88 and a beta of 1.37. The company has a fifty day moving average price of $598.11 and a two-hundred day moving average price of $534.75.

Credit Acceptance (NASDAQ:CACC) last posted its earnings results on Tuesday, August 4th. The credit services provider reported $12.12 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $12.20 by ($0.08). Credit Acceptance had a return on equity of 31.67% and a net margin of 21.54%.The business had revenue of $415.00 million for the quarter, compared to the consensus estimate of $588.07 million. During the same period in the previous year, the company posted $10.05 earnings per share. Credit Acceptance’s revenue for the quarter was up .6% compared to the same quarter last year. Equities analysts anticipate that Credit Acceptance Corporation will post 47.8 earnings per share for the current year.

Insider Buying and Selling at Credit Acceptance

In other Credit Acceptance news, major shareholder Jill Foss Watson sold 11,000 shares of Credit Acceptance 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 sale, the insider owned 49,346 shares of the company’s stock, valued at $32,234,781.04. This trade represents a 18.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Jay D. Martin sold 3,000 shares of the business’s stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $601.04, for a total value of $1,803,120.00. Following the completion of the sale, the chief financial officer owned 25,963 shares in the company, valued at approximately $15,604,801.52. This trade represents a 10.36% decrease in their ownership of the stock. 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 sold a total of 44,289 shares of company stock valued at $27,525,241 over the last quarter. 6.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Credit Acceptance

Hedge funds and other institutional investors have recently made changes to their positions in the business. Versant Capital Management Inc boosted its holdings in Credit Acceptance by 587.5% during the second quarter. Versant Capital Management Inc now owns 55 shares of the credit services provider’s stock worth $35,000 after purchasing an additional 47 shares during the last quarter. State of Wyoming bought a new stake in Credit Acceptance during the 4th quarter worth about $27,000. Kestra Advisory Services LLC acquired a new position in shares of Credit Acceptance during the 4th quarter worth about $27,000. Rockefeller Capital Management L.P. boosted its stake in shares of Credit Acceptance by 53.3% during the 4th 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, Parallel Advisors LLC grew its holdings in shares of Credit Acceptance by 590.0% in the 1st quarter. Parallel Advisors LLC now owns 69 shares of the credit services provider’s stock valued at $29,000 after acquiring an additional 59 shares in the last quarter. 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.