Credit Acceptance (NASDAQ:CACC) COO Sells $1,605,000.00 in Stock

Credit Acceptance Corporation (NASDAQ:CACC) COO Jonathan Lum sold 3,000 shares of the company’s stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $535.00, for a total transaction of $1,605,000.00. Following the completion of the sale, the chief operating officer directly owned 31,609 shares in the company, valued at approximately $16,910,815. The trade was a 8.67% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Credit Acceptance Price Performance

Shares of CACC traded up $5.53 during trading hours on Wednesday, hitting $526.76. The stock had a trading volume of 102,990 shares, compared to its average volume of 203,771. The company’s fifty day moving average is $473.01 and its two-hundred day moving average is $467.64. 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 Corporation has a 52 week low of $401.90 and a 52 week high of $549.75. The stock has a market capitalization of $5.66 billion, a price-to-earnings ratio of 14.43 and a beta of 1.32.

Credit Acceptance (NASDAQ:CACC) last issued its quarterly earnings results on Thursday, January 29th. The credit services provider reported $11.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $10.30 by $1.05. The business had revenue of $408.20 million for the quarter, compared to the consensus estimate of $582.63 million. Credit Acceptance had a net margin of 18.29% and a return on equity of 28.86%. The firm’s quarterly revenue was up 2.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $10.17 EPS. On average, analysts anticipate that Credit Acceptance Corporation will post 47 EPS for the current year.

Analyst Ratings Changes

Several brokerages recently issued reports on CACC. Weiss Ratings reiterated a “hold (c)” rating on shares of Credit Acceptance in a research report on Monday. Stephens upped their price target on shares of Credit Acceptance from $450.00 to $540.00 and gave the stock an “equal weight” rating in a research report on Friday, April 17th. TD Cowen upped their price target on shares of Credit Acceptance from $460.00 to $470.00 and gave the stock a “hold” rating in a research report on Friday, January 30th. Finally, Zacks Research upgraded shares of Credit Acceptance from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, February 3rd. One analyst has rated the stock with a Strong Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $505.00.

Institutional Trading of Credit Acceptance

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. M&T Bank Corp bought a new stake in Credit Acceptance during the 4th quarter worth about $208,294,000. Boston Partners raised its holdings in Credit Acceptance by 3.4% during the 4th quarter. Boston Partners now owns 456,253 shares of the credit services provider’s stock worth $202,373,000 after purchasing an additional 14,877 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in Credit Acceptance by 9.8% during the 4th quarter. Dimensional Fund Advisors LP now owns 223,872 shares of the credit services provider’s stock worth $99,284,000 after purchasing an additional 20,011 shares during the last quarter. Smead Capital Management Inc. raised its holdings in Credit Acceptance by 17.0% during the 2nd 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. Finally, Universal Beteiligungs und Servicegesellschaft mbH raised its holdings in Credit Acceptance by 764.8% during the 4th 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 last quarter. 81.71% of the stock is owned by institutional investors.

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.