Credit Acceptance (NASDAQ:CACC) Shares Down 4.3% – Time to Sell?

Credit Acceptance Corporation (NASDAQ:CACC) shares traded down 4.3% during mid-day trading on Thursday . The company traded as low as $536.75 and last traded at $533.1180. 16,985 shares traded hands during mid-day trading, a decline of 91% from the average session volume of 184,432 shares. The stock had previously closed at $557.21.

Wall Street Analyst Weigh In

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

Credit Acceptance Stock Performance

The firm has a market capitalization of $5.59 billion, a price-to-earnings ratio of 13.33 and a beta of 1.38. The company has a fifty day moving average of $517.25 and a two-hundred day moving average of $485.34. The company has a debt-to-equity ratio of 4.09, a quick ratio of 13.62 and a current ratio of 13.62.

Credit Acceptance (NASDAQ:CACC) last released its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share for the quarter, missing the consensus estimate of $10.73 by ($0.02). The firm had revenue of $406.00 million for the quarter, compared to analyst estimates of $580.77 million. Credit Acceptance had a return on equity of 29.95% and a net margin of 19.49%.The business’s revenue for the quarter was up 1.6% on a year-over-year basis. During the same period in the previous year, the business posted $9.35 earnings per share. As a group, equities research analysts predict that Credit Acceptance Corporation will post 47.5 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Jay D. Martin sold 3,000 shares of the company’s stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $525.63, for a total transaction of $1,576,890.00. Following the completion of the sale, the chief financial officer owned 25,963 shares of the company’s stock, valued at $13,646,931.69. This represents a 10.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kenneth Booth sold 4,000 shares of the stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $534.00, for a total transaction of $2,136,000.00. Following the sale, the director owned 22,832 shares in the company, valued at $12,192,288. The trade was a 14.91% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 26,527 shares of company stock valued at $14,203,265 over the last 90 days. 6.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Credit Acceptance

Several hedge funds have recently bought and sold shares of CACC. State of Wyoming bought a new position in Credit Acceptance in the 4th quarter valued at about $27,000. Kestra Advisory Services LLC bought a new position in shares of Credit Acceptance in the 4th quarter valued at $27,000. Parallel Advisors LLC increased its stake in shares of Credit Acceptance by 590.0% in the 1st quarter. Parallel Advisors LLC now owns 69 shares of the credit services provider’s stock valued at $29,000 after purchasing an additional 59 shares during the last quarter. Altshuler Shaham Ltd increased its stake in shares of Credit Acceptance by 37.3% in the 1st quarter. Altshuler Shaham Ltd now owns 70 shares of the credit services provider’s stock valued at $30,000 after purchasing an additional 19 shares during the last quarter. Finally, Rockefeller Capital Management L.P. increased its stake in shares of Credit Acceptance by 53.3% in the 4th quarter. Rockefeller Capital Management L.P. now owns 69 shares of the credit services provider’s stock valued at $31,000 after purchasing an additional 24 shares during 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.