Credit Acceptance (NASDAQ:CACC) Insider Erin Kerber Sells 1,753 Shares

Credit Acceptance Corporation (NASDAQ:CACC) insider Erin Kerber sold 1,753 shares of the firm’s stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $551.62, for a total transaction of $966,989.86. Following the completion of the sale, the insider owned 25,711 shares of the company’s stock, valued at $14,182,701.82. The trade was a 6.38% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Credit Acceptance Stock Up 2.0%

CACC traded up $10.28 on Friday, hitting $533.15. 198,978 shares of the company were exchanged, compared to its average volume of 194,829. The company has a market cap of $5.58 billion, a PE ratio of 13.25 and a beta of 1.36. The stock’s fifty day moving average is $478.16 and its 200-day moving average is $469.49. Credit Acceptance Corporation has a 12 month low of $401.90 and a 12 month high of $565.14. The company has a debt-to-equity ratio of 4.09, a quick ratio of 16.91 and a current ratio of 13.62.

Credit Acceptance (NASDAQ:CACC) last announced its earnings results on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share for the quarter, missing analysts’ consensus estimates of $10.73 by ($0.02). Credit Acceptance had a return on equity of 29.95% and a net margin of 19.49%.The firm had revenue of $406.00 million for the quarter, compared to the consensus estimate of $580.77 million. During the same quarter last year, the business posted $9.35 EPS. Credit Acceptance’s revenue for the quarter was up 1.6% on a year-over-year basis. Equities research analysts predict that Credit Acceptance Corporation will post 47 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several research analysts have commented on the company. TD Cowen lifted their target price on Credit Acceptance from $450.00 to $500.00 and gave the stock a “hold” rating in a report on Wednesday. Zacks Research upgraded Credit Acceptance from a “hold” rating to a “strong-buy” rating in a report on Tuesday, February 3rd. Weiss Ratings restated a “hold (c)” rating on shares of Credit Acceptance in a research report on Monday, April 20th. Finally, Stephens increased their price target on Credit Acceptance from $450.00 to $540.00 and gave the stock an “equal weight” rating in a report on Friday, April 17th. One equities research analyst has rated the stock with a Strong Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $520.00.

Institutional Investors Weigh In On Credit Acceptance

Several hedge funds and other institutional investors have recently made changes to their positions in the business. M&T Bank Corp bought a new position in Credit Acceptance in the 4th quarter valued at about $208,294,000. Boston Partners raised its stake in shares of Credit Acceptance by 3.4% in the fourth quarter. Boston Partners now owns 456,253 shares of the credit services provider’s stock worth $202,373,000 after purchasing an additional 14,877 shares during the last quarter. Dimensional Fund Advisors LP boosted its position in shares of Credit Acceptance by 3.1% during the first quarter. Dimensional Fund Advisors LP now owns 230,715 shares of the credit services provider’s stock valued at $97,701,000 after buying an additional 6,843 shares during the last quarter. Smead Capital Management Inc. grew its holdings in Credit Acceptance by 17.0% during the second quarter. Smead Capital Management Inc. now owns 216,811 shares of the credit services provider’s stock worth $110,450,000 after buying an additional 31,438 shares in the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH grew its holdings in Credit Acceptance by 764.8% during the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 203,879 shares of the credit services provider’s stock worth $91,652,000 after buying an additional 180,304 shares in the last quarter. 81.71% of the stock is owned by institutional investors.

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.