Credit Acceptance (NASDAQ:CACC) Price Target Raised to $540.00 at Stephens

Credit Acceptance (NASDAQ:CACC) had its price target hoisted by research analysts at Stephens from $450.00 to $540.00 in a report released on Friday,Benzinga reports. The brokerage currently has an “equal weight” rating on the credit services provider’s stock. Stephens’ target price would suggest a potential upside of 9.19% from the company’s previous close.

Several other equities analysts have also weighed in on the stock. TD Cowen increased their price objective on shares of 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 report on Wednesday, January 21st. Finally, Zacks Research raised shares of Credit Acceptance from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, February 3rd. One equities research analyst has rated the stock with a Strong Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $505.00.

Credit Acceptance Price Performance

Shares of CACC opened at $494.56 on Friday. The firm has a market capitalization of $5.32 billion, a PE ratio of 13.55 and a beta of 1.32. The company’s 50-day moving average is $471.58 and its 200-day moving average is $466.49. Credit Acceptance has a fifty-two week low of $401.90 and a fifty-two week high of $549.75. The company has a debt-to-equity ratio of 4.10, a current ratio of 16.91 and a quick ratio of 16.91.

Credit Acceptance (NASDAQ:CACC) last issued its quarterly earnings data on Thursday, January 29th. The credit services provider reported $11.35 earnings per share for the quarter, beating the consensus estimate of $10.30 by $1.05. The company had revenue of $408.20 million for the quarter, compared to analyst estimates of $582.63 million. Credit Acceptance had a net margin of 18.29% and a return on equity of 28.86%. The company’s revenue was up 2.5% on a year-over-year basis. During the same period in the prior year, the firm earned $10.17 earnings per share. Equities analysts forecast that Credit Acceptance will post 53.24 EPS for the current year.

Insider Buying and Selling

In other Credit Acceptance news, Director Kenneth Booth sold 2,000 shares of the firm’s stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $508.00, for a total value of $1,016,000.00. Following the transaction, the director directly owned 22,832 shares of the company’s stock, valued at $11,598,656. This trade represents a 8.05% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Wendy A. Rummler sold 5,236 shares of the firm’s stock in a transaction dated Friday, January 30th. The shares were sold at an average price of $493.44, for a total transaction of $2,583,651.84. Following the completion of the transaction, the insider directly owned 20,772 shares in the company, valued at approximately $10,249,735.68. This represents a 20.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 11,576 shares of company stock valued at $5,824,119. 6.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On Credit Acceptance

Hedge funds have recently bought and sold shares of the company. State of Wyoming bought a new position in Credit Acceptance in the 4th quarter valued at about $27,000. Kestra Advisory Services LLC bought a new position in Credit Acceptance in the 4th quarter valued at about $27,000. Rockefeller Capital Management L.P. increased its holdings in Credit Acceptance by 53.3% in the 4th quarter. Rockefeller Capital Management L.P. now owns 69 shares of the credit services provider’s stock valued at $31,000 after buying an additional 24 shares during the period. Allworth Financial LP increased its holdings in Credit Acceptance by 141.9% in the 3rd quarter. Allworth Financial LP now owns 104 shares of the credit services provider’s stock valued at $49,000 after buying an additional 61 shares during the period. Finally, Vestcor Inc bought a new position in Credit Acceptance in the 3rd quarter valued at about $50,000. 81.71% of the stock is owned by 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.