Credit Acceptance (NASDAQ:CACC) Releases Earnings Results, Beats Expectations By $1.05 EPS

Credit Acceptance (NASDAQ:CACC) announced its earnings results on Thursday. The credit services provider reported $11.35 earnings per share for the quarter, topping the consensus estimate of $10.30 by $1.05, FiscalAI reports. The company had revenue of $408.20 million during the quarter, compared to analyst estimates of $582.63 million. Credit Acceptance had a net margin of 19.70% and a return on equity of 27.88%.

Credit Acceptance Price Performance

CACC stock traded up $17.81 on Thursday, reaching $451.24. 240,853 shares of the company’s stock were exchanged, compared to its average volume of 151,986. Credit Acceptance has a twelve month low of $401.90 and a twelve month high of $560.00. The company has a quick ratio of 15.81, a current ratio of 15.81 and a debt-to-equity ratio of 3.94. The stock has a fifty day moving average of $456.98 and a 200-day moving average of $475.12. The firm has a market cap of $4.98 billion, a PE ratio of 11.95 and a beta of 1.24.

Institutional Investors Weigh In On Credit Acceptance

Several institutional investors have recently modified their holdings of the company. Royal Bank of Canada increased its holdings in Credit Acceptance by 31.6% during the 1st quarter. Royal Bank of Canada now owns 1,916 shares of the credit services provider’s stock valued at $989,000 after acquiring an additional 460 shares in the last quarter. AQR Capital Management LLC raised its holdings in shares of Credit Acceptance by 230.6% in the 1st quarter. AQR Capital Management LLC now owns 7,885 shares of the credit services provider’s stock worth $3,961,000 after purchasing an additional 5,500 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Credit Acceptance by 3.9% in the 1st 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 purchasing an additional 900 shares in the last quarter. Creative Planning boosted its stake in shares of Credit Acceptance by 35.6% during the 2nd quarter. Creative Planning now owns 529 shares of the credit services provider’s stock valued at $269,000 after buying an additional 139 shares during the last quarter. Finally, JPMorgan Chase & Co. raised its stake in Credit Acceptance by 4.8% during the second quarter. JPMorgan Chase & Co. now owns 5,077 shares of the credit services provider’s stock worth $2,586,000 after acquiring an additional 232 shares during the period. Hedge funds and other institutional investors own 81.71% of the company’s stock.

Analyst Ratings Changes

Several research analysts have recently commented on CACC shares. TD Cowen raised shares of Credit Acceptance from a “sell” rating to a “hold” rating in a research note on Thursday, January 8th. Weiss Ratings reissued a “hold (c)” rating on shares of Credit Acceptance in a research report on Wednesday, January 21st. Three analysts have rated the stock with a Hold rating, According to MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $480.00.

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.