Credit Acceptance (NASDAQ:CACC) Shares Gap Up on Strong Earnings

Credit Acceptance Corporation (NASDAQ:CACC) shares gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $451.24, but opened at $485.00. Credit Acceptance shares last traded at $471.12, with a volume of 20,536 shares trading hands.

The credit services provider reported $11.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $10.30 by $1.05. The firm had revenue of $408.20 million for 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%.

More Credit Acceptance News

Here are the key news stories impacting Credit Acceptance this week:

• Positive Sentiment: Adjusted EPS topped estimates — Credit Acceptance reported adjusted EPS of $11.35 vs. the Zacks/Street consensus of $10.30, driven by strong adjusted net income of $126.0M (GAAP net income $122.0M). Investors often favor earnings beats, which likely supported the stock rally. Credit Acceptance (CACC) Q4 Earnings Beat Estimates
• Positive Sentiment: Management rolled out a “digital-first” growth plan — leadership positioned the company to stabilize and grow market share with digital origination and operational investments, which markets view as a constructive long-term revenue driver. Credit Acceptance outlines digital-first growth plan as loan volumes and market share stabilize
• Positive Sentiment: Profitability metrics remain healthy — the company reported a net margin ~19.7% and ROE ~27.9%, showing continued profitability even as volumes adjust. These metrics can support valuations on an earnings multiple basis. Credit Acceptance Announces Fourth Quarter 2025 Results
• Neutral Sentiment: Full earnings transcript available — the call transcript provides management commentary and color on originations, loss trends and capital allocation for investors wanting detail beyond the headline numbers. Credit Acceptance Corporation (CACC) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Pre-earnings analyst preview and local coverage summarized expectations and results — useful context but not market-moving on its own. What to Expect from Credit Acceptance’s Earnings
• Neutral Sentiment: Short-interest data appears inconsistent — a recent report showed an odd/zero-share reading for January that looks like a data glitch and offers little actionable signal. CACC Market Data
• Negative Sentiment: Revenue missed materially — reported revenue of $408.2M fell well short of the ~$582.6M consensus, signaling softer loan originations or timing issues; a sustained top-line shortfall could pressure the stock if management cannot translate the digital plan into revenue growth. Credit Acceptance Q4 earnings summary

Analysts Set New Price Targets

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

Institutional Investors Weigh In On Credit Acceptance

Several institutional investors have recently bought and sold shares of the stock. M&T Bank Corp bought a new position in shares of Credit Acceptance in the fourth quarter valued at approximately $451,000. Universal Beteiligungs und Servicegesellschaft mbH lifted its position in Credit Acceptance by 764.8% in 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 purchasing an additional 180,304 shares during the period. State of Alaska Department of Revenue acquired a new stake in Credit Acceptance in the fourth quarter worth approximately $462,000. Lodestone Wealth Management LLC boosted its stake in Credit Acceptance by 10.1% during the 4th quarter. Lodestone Wealth Management LLC now owns 1,356 shares of the credit services provider’s stock valued at $601,000 after purchasing an additional 124 shares in the last quarter. Finally, Allworth Financial LP increased its position in shares of Credit Acceptance by 141.9% during the 3rd quarter. Allworth Financial LP now owns 104 shares of the credit services provider’s stock valued at $49,000 after purchasing an additional 61 shares during the period. Institutional investors and hedge funds own 81.71% of the company’s stock.

Credit Acceptance Stock Up 4.4%

The company has a debt-to-equity ratio of 3.94, a quick ratio of 15.81 and a current ratio of 15.81. The company has a market cap of $5.20 billion, a P/E ratio of 12.47 and a beta of 1.24. The stock has a 50 day moving average price of $457.79 and a 200 day moving average price of $474.95.

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.