Credit Acceptance (NASDAQ:CACC) Rating Increased to Strong-Buy at Zacks Research

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

CACC has been the topic of several other reports. TD Cowen upped their price target on Credit Acceptance from $460.00 to $470.00 and gave the company a “hold” rating in a research report on Friday, January 30th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Credit Acceptance in a research note on Wednesday, January 21st. One research analyst has rated the stock with a Strong Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $470.00.

Credit Acceptance Stock Performance

Credit Acceptance stock opened at $507.26 on Tuesday. Credit Acceptance has a fifty-two week low of $401.90 and a fifty-two week high of $549.75. The firm’s 50 day simple moving average is $462.71 and its 200-day simple moving average is $474.72. The company has a debt-to-equity ratio of 3.94, a current ratio of 15.81 and a quick ratio of 15.81. The company has a market cap of $5.60 billion, a P/E ratio of 13.90 and a beta of 1.27.

Credit Acceptance (NASDAQ:CACC) last posted its quarterly earnings data on Thursday, January 29th. The credit services provider reported $11.35 EPS for the quarter, topping analysts’ consensus estimates of $10.30 by $1.05. Credit Acceptance had a net margin of 18.29% and a return on equity of 28.46%. The firm had revenue of $408.20 million during the quarter, compared to analyst estimates of $582.63 million. During the same quarter last year, the business posted $10.17 EPS. The company’s revenue was up 2.5% on a year-over-year basis. As a group, equities research analysts predict that Credit Acceptance will post 53.24 EPS for the current year.

Insider Activity

In related news, insider Wendy A. Rummler sold 5,236 shares of Credit Acceptance stock in a transaction on Friday, January 30th. The stock was sold at an average price of $493.44, for a total transaction of $2,583,651.84. Following the completion of the sale, the insider owned 20,772 shares of the company’s stock, valued at approximately $10,249,735.68. This trade represents a 20.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 6.60% of the company’s stock.

Institutional Investors Weigh In On Credit Acceptance

Hedge funds and other institutional investors have recently made changes to their positions in the company. Global Retirement Partners LLC grew its position in shares of Credit Acceptance by 2.7% in the 3rd quarter. Global Retirement Partners LLC now owns 882 shares of the credit services provider’s stock valued at $412,000 after purchasing an additional 23 shares during the period. Russell Investments Group Ltd. boosted its holdings in shares of Credit Acceptance by 5.3% in the third quarter. Russell Investments Group Ltd. now owns 721 shares of the credit services provider’s stock valued at $337,000 after buying an additional 36 shares during the period. Greenline Partners LLC increased its position in shares of Credit Acceptance by 0.3% during the third quarter. Greenline Partners LLC now owns 13,450 shares of the credit services provider’s stock worth $6,280,000 after acquiring an additional 36 shares in the last quarter. Ameriprise Financial Inc. increased its position in shares of Credit Acceptance by 2.0% during the second quarter. Ameriprise Financial Inc. now owns 1,929 shares of the credit services provider’s stock worth $983,000 after acquiring an additional 38 shares in the last quarter. Finally, Creative Planning raised its holdings in shares of Credit Acceptance by 8.1% during the third quarter. Creative Planning now owns 572 shares of the credit services provider’s stock worth $267,000 after acquiring an additional 43 shares during the period. 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.