Jay Martin Sells 4,340 Shares of Credit Acceptance (NASDAQ:CACC) Stock

Credit Acceptance Corporation (NASDAQ:CACC) CFO Jay Martin sold 4,340 shares of the stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $512.55, for a total value of $2,224,467.00. Following the transaction, the chief financial officer owned 25,963 shares in the company, valued at $13,307,335.65. This trade represents a 14.32% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink.

Credit Acceptance Price Performance

CACC traded up $3.35 during midday trading on Wednesday, hitting $510.71. 175,265 shares of the company traded hands, compared to its average volume of 194,309. The company has a market capitalization of $5.63 billion, a price-to-earnings ratio of 13.99 and a beta of 1.27. The business has a 50 day simple moving average of $466.24 and a two-hundred day simple moving average of $474.00. The company has a current ratio of 15.81, a quick ratio of 15.81 and a debt-to-equity ratio of 3.94. Credit Acceptance Corporation has a 52-week low of $401.90 and a 52-week high of $549.75.

Credit Acceptance (NASDAQ:CACC) last posted its quarterly earnings data on Thursday, January 29th. The credit services provider reported $11.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $10.30 by $1.05. The company had revenue of $408.20 million for the quarter, compared to analysts’ expectations of $582.63 million. Credit Acceptance had a return on equity of 28.46% and a net margin of 18.29%.Credit Acceptance’s revenue was up 2.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $10.17 EPS. On average, equities analysts forecast that Credit Acceptance Corporation will post 53.24 earnings per share for the current fiscal year.

Institutional Trading of Credit Acceptance

A number of institutional investors have recently added to or reduced their stakes in the business. M&T Bank Corp purchased a new stake in Credit Acceptance during the 4th quarter worth $208,294,000. Boston Partners purchased a new stake in Credit Acceptance during the 3rd quarter worth approximately $206,327,000. Universal Beteiligungs und Servicegesellschaft mbH boosted its stake in shares of Credit Acceptance by 764.8% during the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 203,879 shares of the credit services provider’s stock valued at $91,652,000 after buying an additional 180,304 shares during the last quarter. First Trust Advisors LP bought a new stake in shares of Credit Acceptance in the second quarter worth $26,422,000. Finally, Smead Capital Management Inc. raised its holdings in Credit Acceptance by 17.0% in the second quarter. Smead Capital Management Inc. now owns 216,811 shares of the credit services provider’s stock valued at $110,450,000 after acquiring an additional 31,438 shares in the last quarter. 81.71% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on CACC shares. TD Cowen increased their target price on shares of Credit Acceptance from $460.00 to $470.00 and gave the company a “hold” rating in a research report on Friday, January 30th. Zacks Research upgraded shares of Credit Acceptance from a “hold” rating to a “strong-buy” rating in a report on Tuesday, February 3rd. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Credit Acceptance in a research note on Wednesday, January 21st. One research analyst has rated the stock with a Strong Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $470.00.

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.