Credit Acceptance (NASDAQ:CACC) Insider Erin Kerber Sells 5,720 Shares

Credit Acceptance Corporation (NASDAQ:CACC) insider Erin Kerber sold 5,720 shares of the stock in a transaction on Friday, June 26th. The stock was sold at an average price of $629.80, for a total transaction of $3,602,456.00. Following the sale, the insider owned 25,711 shares of the company’s stock, valued at approximately $16,192,787.80. This trade represents a 18.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Credit Acceptance Price Performance

CACC stock opened at $636.74 on Wednesday. The firm has a market cap of $6.66 billion, a price-to-earnings ratio of 15.82 and a beta of 1.38. The company has a quick ratio of 13.62, a current ratio of 13.62 and a debt-to-equity ratio of 4.09. Credit Acceptance Corporation has a 12-month low of $401.90 and a 12-month high of $645.00. The company’s fifty day simple moving average is $553.59 and its 200 day simple moving average is $498.46.

Credit Acceptance (NASDAQ:CACC) last issued its quarterly 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 business had revenue of $406.00 million for the quarter, compared to analyst estimates of $580.77 million. During the same quarter in the previous year, the business posted $9.35 earnings per share. The business’s revenue was up 1.6% on a year-over-year basis. On average, analysts expect that Credit Acceptance Corporation will post 47.5 earnings per share for the current year.

Institutional Investors Weigh In On Credit Acceptance

A number of hedge funds have recently added to or reduced their stakes in the company. M&T Bank Corp bought a new stake in shares of Credit Acceptance during the fourth quarter valued at approximately $208,294,000. Boston Partners grew its position in Credit Acceptance by 3.4% in the 4th quarter. Boston Partners now owns 456,253 shares of the credit services provider’s stock valued at $202,373,000 after purchasing an additional 14,877 shares during the period. Dimensional Fund Advisors LP grew its position in Credit Acceptance by 3.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 230,715 shares of the credit services provider’s stock valued at $97,701,000 after purchasing an additional 6,843 shares during the period. Smead Capital Management Inc. increased its stake in Credit Acceptance by 17.0% during the 2nd quarter. Smead Capital Management Inc. now owns 216,811 shares of the credit services provider’s stock valued at $110,450,000 after purchasing an additional 31,438 shares in the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH raised 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 during the last quarter. Institutional investors and hedge funds own 81.71% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on the company. Weiss Ratings raised Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, May 8th. Zacks Research downgraded shares of 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 shares of Credit Acceptance from $450.00 to $500.00 and gave the stock a “hold” rating in a research note on Wednesday, May 6th. Finally, Stephens raised their price target on shares of Credit Acceptance from $450.00 to $540.00 and gave the stock an “equal weight” rating in a report on Friday, April 17th. Four investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $520.00.

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.