Zacks Research Upgrades Credit Acceptance (NASDAQ:CACC) to Strong-Buy

Credit Acceptance (NASDAQ:CACC) was upgraded by research analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a report issued on Tuesday,Zacks.com reports.

A number of other equities analysts have also weighed in on the company. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Credit Acceptance in a research report on Wednesday, January 21st. TD Cowen raised their price objective on shares of Credit Acceptance from $460.00 to $470.00 and gave the company a “hold” rating in a research note on Friday, January 30th. One research analyst has rated the stock with a Strong Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $470.00.

Credit Acceptance Price Performance

Shares of NASDAQ CACC opened at $507.26 on Tuesday. The firm has a market capitalization of $5.60 billion, a P/E ratio of 13.90 and a beta of 1.27. The firm’s 50-day moving average price is $462.71 and its 200-day moving average price is $474.72. 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 has a 1-year low of $401.90 and a 1-year high of $549.75.

Credit Acceptance (NASDAQ:CACC) last issued its earnings results on Thursday, January 29th. The credit services provider reported $11.35 EPS for the quarter, beating analysts’ consensus estimates of $10.30 by $1.05. The business had revenue of $408.20 million during the quarter, compared to analyst estimates of $582.63 million. Credit Acceptance had a return on equity of 28.46% and a net margin of 18.29%.The firm’s revenue was up 2.5% compared to the same quarter last year. During the same period in the previous year, the company posted $10.17 EPS. Equities research analysts anticipate that Credit Acceptance will post 53.24 earnings per share for the current fiscal year.

Insider Transactions at Credit Acceptance

In related news, insider Wendy A. Rummler sold 5,236 shares of the stock in a transaction on Friday, January 30th. The stock was 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 directly owned 20,772 shares of the company’s stock, valued at approximately $10,249,735.68. This represents a 20.13% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 6.60% of the company’s stock.

Hedge Funds Weigh In On Credit Acceptance

A number of hedge funds have recently bought and sold shares of CACC. M&T Bank Corp purchased a new position in shares of Credit Acceptance in the 4th quarter worth approximately $208,294,000. Boston Partners bought a new stake in Credit Acceptance during the third quarter worth $206,327,000. Universal Beteiligungs und Servicegesellschaft mbH lifted its holdings in Credit Acceptance by 764.8% during the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 203,879 shares of the credit services provider’s stock worth $91,652,000 after acquiring an additional 180,304 shares during the period. First Trust Advisors LP bought a new stake in Credit Acceptance during the second quarter worth $26,422,000. Finally, Smead Capital Management Inc. boosted its position 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 worth $110,450,000 after purchasing an additional 31,438 shares during the last quarter. 81.71% of the stock is owned by hedge funds and other institutional investors.

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.