Credit Acceptance (NASDAQ:CACC) Insider Sells $1,842,057.03 in Stock

Credit Acceptance Corporation (NASDAQ:CACC) insider Erin Kerber sold 2,937 shares of the firm’s stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $627.19, for a total value of $1,842,057.03. Following the transaction, the insider directly owned 25,711 shares in the company, valued at $16,125,682.09. This trade represents a 10.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Credit Acceptance Price Performance

CACC stock traded up $5.92 during trading on Friday, hitting $629.62. The company had a trading volume of 204,962 shares, compared to its average volume of 192,517. The business has a 50 day moving average of $545.89 and a 200 day moving average of $494.88. The firm has a market capitalization of $6.59 billion, a price-to-earnings ratio of 15.65 and a beta of 1.38. The company has a current ratio of 13.62, a quick ratio of 13.62 and a debt-to-equity ratio of 4.09. Credit Acceptance Corporation has a fifty-two week low of $401.90 and a fifty-two week high of $638.55.

Credit Acceptance (NASDAQ:CACC) last released its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $10.71 EPS for the quarter, missing analysts’ consensus estimates of $10.73 by ($0.02). The company 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%.The firm’s quarterly revenue was up 1.6% compared to the same quarter last year. During the same quarter last year, the firm posted $9.35 earnings per share. As a group, research analysts predict that Credit Acceptance Corporation will post 47.5 earnings per share for the current year.

Analyst Ratings Changes

CACC has been the topic of a number of research reports. Weiss Ratings raised Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, May 8th. TD Cowen upped their price target on Credit Acceptance from $450.00 to $500.00 and gave the company a “hold” rating in a report on Wednesday, May 6th. Stephens increased their price objective 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. Finally, Zacks Research lowered Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, May 13th. Four equities research analysts have rated the stock with a Hold rating, According to MarketBeat, Credit Acceptance presently has a consensus rating of “Hold” and an average target price of $520.00.

Institutional Trading of Credit Acceptance

Several large investors have recently added to or reduced their stakes in CACC. Altshuler Shaham Ltd grew its holdings in shares of Credit Acceptance by 37.3% during the first quarter. Altshuler Shaham Ltd now owns 70 shares of the credit services provider’s stock valued at $30,000 after buying an additional 19 shares in the last quarter. Pictet Asset Management Holding SA boosted its position in Credit Acceptance by 2.1% during the 1st quarter. Pictet Asset Management Holding SA now owns 990 shares of the credit services provider’s stock worth $419,000 after acquiring an additional 20 shares during the period. Rockefeller Capital Management L.P. grew its stake in 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 valued at $31,000 after acquiring an additional 24 shares in the last quarter. Janney Montgomery Scott LLC increased its holdings in shares of Credit Acceptance by 4.6% in the 4th quarter. Janney Montgomery Scott LLC now owns 571 shares of the credit services provider’s stock valued at $253,000 after purchasing an additional 25 shares during the period. Finally, Cetera Investment Advisers increased its holdings in shares of Credit Acceptance by 6.3% in the 4th quarter. Cetera Investment Advisers now owns 508 shares of the credit services provider’s stock valued at $225,000 after purchasing an additional 30 shares during the period. 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.