London Co. of Virginia Trims Stake in Credit Acceptance Corporation $CACC

London Co. of Virginia cut its position in Credit Acceptance Corporation (NASDAQ:CACC) by 2.4% in the third quarter, Holdings Channel reports. The firm owned 100,313 shares of the credit services provider’s stock after selling 2,510 shares during the period. London Co. of Virginia’s holdings in Credit Acceptance were worth $46,843,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also recently added to or reduced their stakes in the company. Royal Bank of Canada increased its position in Credit Acceptance by 31.6% during the first quarter. Royal Bank of Canada now owns 1,916 shares of the credit services provider’s stock worth $989,000 after buying an additional 460 shares during the period. AQR Capital Management LLC boosted its holdings in shares of Credit Acceptance by 230.6% in the first quarter. AQR Capital Management LLC now owns 7,885 shares of the credit services provider’s stock valued at $3,961,000 after acquiring an additional 5,500 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Credit Acceptance by 3.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 23,886 shares of the credit services provider’s stock valued at $12,334,000 after acquiring an additional 900 shares during the period. Police & Firemen s Retirement System of New Jersey grew its position in shares of Credit Acceptance by 13.7% during the second quarter. Police & Firemen s Retirement System of New Jersey now owns 2,593 shares of the credit services provider’s stock worth $1,321,000 after acquiring an additional 312 shares during the last quarter. Finally, SG Americas Securities LLC grew its position in shares of Credit Acceptance by 64.0% during the second quarter. SG Americas Securities LLC now owns 456 shares of the credit services provider’s stock worth $232,000 after acquiring an additional 178 shares during the last quarter. Hedge funds and other institutional investors own 81.71% of the company’s stock.

Credit Acceptance Stock Down 0.7%

Credit Acceptance stock opened at $444.55 on Tuesday. The stock has a 50 day moving average of $479.93 and a two-hundred day moving average of $474.77. Credit Acceptance Corporation has a twelve month low of $401.90 and a twelve month high of $549.75. The stock has a market capitalization of $4.78 billion, a price-to-earnings ratio of 12.18 and a beta of 1.29. The company has a current ratio of 16.91, a quick ratio of 16.91 and a debt-to-equity ratio of 4.10.

Credit Acceptance (NASDAQ:CACC) last released its earnings results on Thursday, January 29th. The credit services provider reported $11.35 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $10.30 by $1.05. Credit Acceptance had a return on equity of 28.86% and a net margin of 18.29%.The business had revenue of $408.20 million for the quarter, compared to analyst estimates of $582.63 million. During the same quarter in the previous year, the company posted $10.17 earnings per share. The company’s revenue for the quarter was up 2.5% compared to the same quarter last year. As a group, research analysts expect that Credit Acceptance Corporation will post 53.24 earnings per share for the current year.

Wall Street Analysts Forecast Growth

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

Insider Activity at Credit Acceptance

In other news, insider Wendy A. Rummler sold 5,236 shares of the firm’s stock in a transaction on Friday, January 30th. The shares were sold at an average price of $493.44, for a total value of $2,583,651.84. Following the completion of the sale, the insider owned 20,772 shares in the company, valued at approximately $10,249,735.68. This trade represents a 20.13% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Kenneth Booth sold 2,000 shares of Credit Acceptance stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $508.00, for a total transaction of $1,016,000.00. Following the completion of the sale, the director directly owned 22,832 shares in the company, valued at approximately $11,598,656. The trade was a 8.05% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 11,576 shares of company stock worth $5,824,119 in the last three months. Insiders own 6.60% of the company’s stock.

Credit Acceptance 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.