Credit Acceptance (NASDAQ:CACC) Sets New 12-Month High – Here’s What Happened

Credit Acceptance Corporation (NASDAQ:CACC)’s share price reached a new 52-week high on Monday . The stock traded as high as $638.55 and last traded at $623.8750, with a volume of 208842 shares. The stock had previously closed at $628.86.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on CACC. Weiss Ratings raised shares of Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, May 8th. Stephens lifted their price target on Credit Acceptance from $450.00 to $540.00 and gave the stock an “equal weight” rating in a report on Friday, April 17th. Zacks Research downgraded Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, May 13th. Finally, TD Cowen upped their price objective on Credit Acceptance from $450.00 to $500.00 and gave the company a “hold” rating in a research note on Wednesday, May 6th. Four research analysts have rated the stock with a Hold rating, According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $520.00.

Credit Acceptance Stock Up 0.1%

The company has a debt-to-equity ratio of 4.09, a quick ratio of 13.62 and a current ratio of 13.62. The firm has a fifty day simple moving average of $548.53 and a 200-day simple moving average of $496.07. The firm has a market cap of $6.58 billion, a price-to-earnings ratio of 15.64 and a beta of 1.38.

Credit Acceptance (NASDAQ:CACC) last released its quarterly earnings data on Tuesday, May 5th. The credit services provider reported $10.71 EPS for the quarter, missing the consensus estimate of $10.73 by ($0.02). The company had revenue of $406.00 million during the quarter, compared to analyst estimates of $580.77 million. Credit Acceptance had a net margin of 19.49% and a return on equity of 29.95%. Credit Acceptance’s revenue for the quarter was up 1.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $9.35 earnings per share. As a group, sell-side analysts expect that Credit Acceptance Corporation will post 47.5 EPS for the current year.

Insiders Place Their Bets

In other news, Director Kenneth Booth sold 4,000 shares of the business’s stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $534.00, for a total transaction of $2,136,000.00. Following the completion of the sale, the director owned 22,832 shares in the company, valued at $12,192,288. The trade was a 14.91% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Jill Foss Watson sold 9,450 shares of the company’s stock in a transaction that occurred on Tuesday, April 21st. The shares were sold at an average price of $538.52, for a total value of $5,089,014.00. Following the completion of the transaction, the insider directly owned 92,107 shares in the company, valued at $49,601,461.64. The trade was a 9.31% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 51,790 shares of company stock worth $29,487,654 in the last 90 days. Corporate insiders own 6.10% of the company’s stock.

Institutional Trading of Credit Acceptance

Hedge funds have recently added to or reduced their stakes in the company. State of Wyoming bought a new position in Credit Acceptance during the 4th quarter worth $27,000. Kestra Advisory Services LLC bought a new stake in shares of Credit Acceptance in the fourth quarter valued at about $27,000. Parallel Advisors LLC boosted its position in shares of Credit Acceptance by 590.0% in the first quarter. Parallel Advisors LLC now owns 69 shares of the credit services provider’s stock valued at $29,000 after acquiring an additional 59 shares during the period. Altshuler Shaham Ltd boosted its position in shares of Credit Acceptance by 37.3% in the first quarter. Altshuler Shaham Ltd now owns 70 shares of the credit services provider’s stock valued at $30,000 after acquiring an additional 19 shares during the period. Finally, Rockefeller Capital Management L.P. grew its stake in shares of Credit Acceptance by 53.3% in the fourth quarter. Rockefeller Capital Management L.P. now owns 69 shares of the credit services provider’s stock valued at $31,000 after acquiring an additional 24 shares in the last quarter. 81.71% of the stock is owned by institutional investors and hedge funds.

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.