Two Sigma Securities LLC Makes New $811,000 Investment in Credit Acceptance Corporation $CACC

Two Sigma Securities LLC acquired a new position in Credit Acceptance Corporation (NASDAQ:CACC) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 1,274 shares of the credit services provider’s stock, valued at approximately $811,000.

A number of other hedge funds have also made changes to their positions in CACC. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in Credit Acceptance by 8.7% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 19,393 shares of the credit services provider’s stock worth $12,348,000 after purchasing an additional 1,549 shares during the period. Wellington Management Group LLP increased its holdings in Credit Acceptance by 0.5% in the 2nd quarter. Wellington Management Group LLP now owns 260,084 shares of the credit services provider’s stock valued at $165,606,000 after purchasing an additional 1,186 shares in the last quarter. Beacon Pointe Advisors LLC purchased a new position in Credit Acceptance in the second quarter valued at about $1,097,000. Public Employees Retirement System of Ohio purchased a new position in Credit Acceptance in the second quarter valued at about $760,000. Finally, Redwood Investment Management LLC purchased a new position in Credit Acceptance in the second quarter valued at about $1,158,000. Hedge funds and other institutional investors own 81.71% of the company’s stock.

Insider Buying and Selling

In other news, insider Erin J. Kerber sold 8,656 shares of the firm’s stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $600.94, for a total transaction of $5,201,736.64. Following the completion of the sale, the insider directly owned 25,711 shares in the company, valued at $15,450,768.34. This trade represents a 25.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jay D. Martin sold 3,000 shares of Credit Acceptance stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $601.04, for a total value of $1,803,120.00. Following the sale, the chief financial officer directly owned 25,963 shares in the company, valued at approximately $15,604,801.52. The trade was a 10.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 44,289 shares of company stock worth $27,525,241 over the last quarter. Company insiders own 6.10% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the company. Zacks Research downgraded Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, May 13th. Weiss Ratings upgraded Credit Acceptance from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, July 16th. Finally, TD Cowen boosted their price target on Credit Acceptance from $575.00 to $600.00 and gave the stock a “hold” rating in a research report on Wednesday, August 5th. One equities research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $570.00.

Credit Acceptance Price Performance

Shares of CACC stock opened at $594.18 on Wednesday. The firm has a fifty day simple moving average of $602.97 and a 200-day simple moving average of $540.66. The company has a market capitalization of $6.22 billion, a PE ratio of 13.06 and a beta of 1.35. Credit Acceptance Corporation has a twelve month low of $401.90 and a twelve month high of $668.86. The company has a current ratio of 14.89, a quick ratio of 14.89 and a debt-to-equity ratio of 3.84.

Credit Acceptance (NASDAQ:CACC) last released its quarterly earnings results on Tuesday, August 4th. The credit services provider reported $12.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $12.20 by ($0.08). Credit Acceptance had a return on equity of 31.67% and a net margin of 21.54%.The firm had revenue of $415.00 million for the quarter, compared to analysts’ expectations of $588.07 million. During the same period last year, the firm earned $10.05 EPS. The business’s quarterly revenue was up .6% on a year-over-year basis. Equities research analysts anticipate that Credit Acceptance Corporation will post 47.8 earnings per share for the current fiscal year.

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.