Hsbc Holdings PLC Invests $1.03 Million in Credit Acceptance Corporation $CACC

Hsbc Holdings PLC bought a new stake in Credit Acceptance Corporation (NASDAQ:CACC) in the first quarter, HoldingsChannel.com reports. The firm bought 2,423 shares of the credit services provider’s stock, valued at approximately $1,026,000.

Several other institutional investors and hedge funds have also modified their holdings of CACC. State of Wyoming bought a new stake in Credit Acceptance in the 4th quarter valued at about $27,000. Kestra Advisory Services LLC bought a new position in shares of Credit Acceptance during the fourth quarter worth approximately $27,000. Rockefeller Capital Management L.P. increased its holdings in shares of Credit Acceptance by 53.3% during the fourth quarter. Rockefeller Capital Management L.P. now owns 69 shares of the credit services provider’s stock worth $31,000 after purchasing an additional 24 shares during the period. Allworth Financial LP raised its position in shares of Credit Acceptance by 141.9% in the third quarter. Allworth Financial LP now owns 104 shares of the credit services provider’s stock valued at $49,000 after buying an additional 61 shares in the last quarter. Finally, Vestcor Inc acquired a new stake in shares of Credit Acceptance in the third quarter valued at approximately $50,000. 81.71% of the stock is currently owned by institutional investors and hedge funds.

Credit Acceptance Stock Performance

Shares of Credit Acceptance stock opened at $558.55 on Wednesday. The company has a 50 day moving average of $590.77 and a 200-day moving average of $521.25. Credit Acceptance Corporation has a 1-year low of $401.90 and a 1-year high of $668.86. 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 market cap of $5.84 billion, a PE ratio of 13.88 and a beta of 1.36.

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

Analysts Set New Price Targets

A number of brokerages recently issued reports on CACC. Zacks Research downgraded Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, May 13th. TD Cowen increased their target price on Credit Acceptance from $500.00 to $575.00 and gave the stock a “hold” rating in a report on Tuesday, July 7th. Weiss Ratings upgraded Credit Acceptance from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, July 16th. Finally, Stephens boosted 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. One investment analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $557.50.

Insider Activity

In other news, insider Nicholas J. Elliott sold 2,306 shares of Credit Acceptance stock in a transaction on Friday, June 26th. The stock was sold at an average price of $629.99, for a total value of $1,452,756.94. Following the transaction, the insider owned 20,897 shares in the company, valued at approximately $13,164,901.03. This trade represents a 9.94% 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, insider Erin J. Kerber sold 5,720 shares of the business’s stock in a transaction on Friday, June 26th. The stock was sold at an average price of $629.80, for a total value of $3,602,456.00. Following the transaction, the insider directly owned 25,711 shares of the company’s stock, valued at $16,192,787.80. This trade represents a 18.20% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 47,304 shares of company stock valued at $29,186,331. Corporate insiders own 6.10% of the company’s stock.

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.