Credit Acceptance (CACC) Upgraded by Zacks Investment Research to Strong-Buy
Credit Acceptance (NASDAQ:CACC) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a report issued on Friday. The brokerage currently has a $390.00 target price on the credit services provider’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 14.87% from the company’s previous close.
According to Zacks, “Credit Acceptance Corporation is a specialized financial services company which provides funding, receivables management, collection, sales training and related services to automobile dealers. “
Several other brokerages also recently weighed in on CACC. Stephens set a $257.00 price target on shares of Credit Acceptance and gave the company a “sell” rating in a research report on Wednesday, January 3rd. BMO Capital Markets reissued a “hold” rating and set a $238.00 price target on shares of Credit Acceptance in a research report on Friday, October 6th. BidaskClub raised shares of Credit Acceptance from a “buy” rating to a “strong-buy” rating in a research report on Tuesday, December 12th. Bank of America raised their price target on shares of Credit Acceptance from $195.00 to $230.00 and gave the company an “underperform” rating in a research report on Tuesday, October 31st. Finally, Credit Suisse Group raised their price target on shares of Credit Acceptance from $200.00 to $225.00 and gave the company an “underperform” rating in a research report on Tuesday, October 31st. Four analysts have rated the stock with a sell rating, five have assigned a hold rating, two have issued a buy rating and one has given a strong buy rating to the company’s stock. Credit Acceptance currently has a consensus rating of “Hold” and an average target price of $263.50.
Credit Acceptance (NASDAQ:CACC) last announced its earnings results on Monday, October 30th. The credit services provider reported $5.43 earnings per share for the quarter, beating the Zacks’ consensus estimate of $5.15 by $0.28. Credit Acceptance had a net margin of 35.29% and a return on equity of 32.08%. The business had revenue of $283.90 million during the quarter, compared to the consensus estimate of $281.03 million. During the same quarter last year, the firm earned $4.53 earnings per share. The business’s revenue for the quarter was up 15.1% on a year-over-year basis. research analysts forecast that Credit Acceptance will post 20.74 earnings per share for the current year.
In related news, major shareholder Jill Foss Watson sold 30,038 shares of the firm’s stock in a transaction that occurred on Thursday, December 21st. The shares were sold at an average price of $330.83, for a total transaction of $9,937,471.54. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders have sold 114,925 shares of company stock valued at $37,901,719 in the last three months. 5.80% of the stock is owned by insiders.
A number of hedge funds have recently modified their holdings of the stock. Parametric Portfolio Associates LLC boosted its holdings in Credit Acceptance by 19.0% in the third quarter. Parametric Portfolio Associates LLC now owns 50,674 shares of the credit services provider’s stock worth $14,197,000 after purchasing an additional 8,097 shares during the last quarter. Sterling Capital Management LLC purchased a new stake in Credit Acceptance in the third quarter worth approximately $693,000. California Public Employees Retirement System boosted its holdings in Credit Acceptance by 4.5% in the third quarter. California Public Employees Retirement System now owns 15,152 shares of the credit services provider’s stock worth $4,245,000 after purchasing an additional 652 shares during the last quarter. Ladenburg Thalmann Financial Services Inc. boosted its holdings in Credit Acceptance by 437.0% in the third quarter. Ladenburg Thalmann Financial Services Inc. now owns 537 shares of the credit services provider’s stock worth $150,000 after purchasing an additional 437 shares during the last quarter. Finally, Janus Henderson Group PLC purchased a new stake in Credit Acceptance in the third quarter worth approximately $2,072,000. Institutional investors own 70.69% of the company’s stock.
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About Credit Acceptance
Credit Acceptance Corporation offers financing programs that enable automobile dealers to sell vehicles to consumers. The Company’s financing programs are offered through a network of automobile dealers. The Company has two Dealers financing programs: the Portfolio Program and the Purchase Program. Under the Portfolio Program, the Company advances money to dealers (Dealer Loan) in exchange for the right to service the underlying consumer loans.
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