Susquehanna Fundamental Investments LLC Takes Position in Credit Acceptance Corporation $CACC

Susquehanna Fundamental Investments LLC bought a new stake in Credit Acceptance Corporation (NASDAQ:CACC) during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 1,650 shares of the credit services provider’s stock, valued at approximately $1,051,000.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in Credit Acceptance during the 2nd quarter worth approximately $408,849,000. Boston Partners acquired a new position in shares of Credit Acceptance during the 3rd quarter valued at $206,327,000. Goodnow Investment Group LLC purchased a new stake in Credit Acceptance during the 2nd quarter worth $67,578,000. Smith Thomas W acquired a new stake in Credit Acceptance in the 4th quarter valued at $42,083,000. Finally, Renaissance Technologies LLC raised its position in Credit Acceptance by 1,078.0% in the first quarter. Renaissance Technologies LLC now owns 63,468 shares of the credit services provider’s stock valued at $26,876,000 after purchasing an additional 58,080 shares during the period. 81.71% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

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

Insider Buying and Selling

In related news, COO Jonathan Lum sold 6,000 shares of the company’s stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $600.00, for a total transaction of $3,600,000.00. Following the completion of the transaction, the chief operating officer directly owned 31,609 shares in the company, valued at $18,965,400. This represents a 15.95% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Erin J. Kerber sold 8,656 shares of the stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $600.94, for a total value of $5,201,736.64. Following the completion of the sale, the insider directly owned 25,711 shares in the company, valued at $15,450,768.34. This represents a 25.19% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 90 days. 6.10% of the stock is owned by corporate insiders.

Credit Acceptance Stock Performance

CACC stock opened at $594.18 on Wednesday. The stock’s 50 day simple moving average is $602.97 and its 200 day simple moving average is $540.66. Credit Acceptance Corporation has a 12-month low of $401.90 and a 12-month high of $668.86. The firm has a market cap of $6.22 billion, a P/E ratio of 13.06 and a beta of 1.35. The company has a current ratio of 14.89, a quick ratio of 14.89 and a debt-to-equity ratio of 3.84.

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