Hsbc Holdings PLC Buys New Position in Credit Acceptance Corporation $CACC

Hsbc Holdings PLC bought a new stake in Credit Acceptance Corporation (NASDAQ:CACC) during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund bought 2,423 shares of the credit services provider’s stock, valued at approximately $1,026,000.

Other large investors have also recently bought and sold shares of the company. State of Alaska Department of Revenue acquired a new stake in shares of Credit Acceptance in the 4th quarter valued at approximately $462,000. SG Americas Securities LLC grew its stake in shares of Credit Acceptance by 429.9% in the first quarter. SG Americas Securities LLC now owns 12,835 shares of the credit services provider’s stock valued at $5,435,000 after buying an additional 10,413 shares in the last quarter. M&T Bank Corp acquired a new position in Credit Acceptance during the fourth quarter worth $208,294,000. Geo Capital Gestora de Recursos Ltd acquired a new position in Credit Acceptance during the fourth quarter worth $1,842,000. Finally, Impact Partnership Wealth LLC bought a new stake in Credit Acceptance during the fourth quarter worth $441,000. Institutional investors and hedge funds own 81.71% of the company’s stock.

Wall Street Analyst Weigh In

CACC has been the subject of a number of recent analyst reports. Zacks Research cut shares of Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 13th. Stephens boosted their price objective on shares of Credit Acceptance from $450.00 to $540.00 and gave the stock an “equal weight” rating in a research note on Friday, April 17th. TD Cowen upped their target price on shares of Credit Acceptance from $500.00 to $575.00 and gave the company a “hold” rating in a report on Tuesday, July 7th. Finally, Weiss Ratings upgraded shares of Credit Acceptance from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, July 16th. One equities research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $557.50.

Credit Acceptance Stock Up 1.1%

CACC opened at $558.55 on Wednesday. Credit Acceptance Corporation has a 1-year low of $401.90 and a 1-year high of $668.86. The stock’s fifty day simple moving average is $590.77 and its 200 day simple moving average is $521.25. The company has a current ratio of 13.62, a quick ratio of 13.62 and a debt-to-equity ratio of 4.09. The stock has a market cap of $5.84 billion, a PE ratio of 13.88 and a beta of 1.36.

Credit Acceptance (NASDAQ:CACC) last released its quarterly earnings data 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). Credit Acceptance had a return on equity of 29.95% and a net margin of 19.49%.The company had revenue of $406.00 million for the quarter, compared to the consensus estimate of $580.77 million. During the same period last year, the firm earned $9.35 earnings per share. The company’s revenue for the quarter was up 1.6% compared to the same quarter last year. As a group, research analysts expect that Credit Acceptance Corporation will post 47.5 earnings per share for the current year.

Insider Activity at Credit Acceptance

In other Credit Acceptance news, insider Erin J. Kerber sold 5,720 shares of the stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $629.80, for a total value of $3,602,456.00. Following the transaction, the insider directly owned 25,711 shares of the company’s stock, valued at $16,192,787.80. This represents a 18.20% decrease in their position. The transaction was disclosed in a legal 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 Nicholas J. Elliott sold 2,306 shares of the firm’s stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $629.99, for a total transaction of $1,452,756.94. Following the sale, the insider owned 20,897 shares of the company’s stock, valued at $13,164,901.03. This trade represents a 9.94% 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 a total of 47,304 shares of company stock worth $29,186,331 in the last quarter. 6.10% of the stock is owned by corporate insiders.

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.