Credit Acceptance (NASDAQ:CACC) Reaches New 1-Year High – What’s Next?

Credit Acceptance Corporation (NASDAQ:CACC) reached a new 52-week high during mid-day trading on Monday . The stock traded as high as $667.00 and last traded at $662.8750, with a volume of 15462 shares. The stock had previously closed at $657.12.

Analyst Upgrades and Downgrades

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

Credit Acceptance Stock Up 0.1%

The stock has a 50 day moving average price of $561.17 and a 200 day moving average price of $502.37. 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 company has a market capitalization of $6.88 billion, a P/E ratio of 16.34 and a beta of 1.36.

Credit Acceptance (NASDAQ:CACC) last posted its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share for the quarter, missing the consensus estimate of $10.73 by ($0.02). The company had revenue of $406.00 million for the quarter, compared to the consensus estimate of $580.77 million. Credit Acceptance had a net margin of 19.49% and a return on equity of 29.95%. Credit Acceptance’s quarterly revenue was up 1.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $9.35 EPS. Equities research analysts forecast that Credit Acceptance Corporation will post 47.5 earnings per share for the current fiscal year.

Insider Activity at Credit Acceptance

In other Credit Acceptance news, CFO Jay D. Martin sold 3,000 shares of the stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $601.04, for a total transaction of $1,803,120.00. Following the completion of the transaction, the chief financial officer directly owned 25,963 shares of the company’s stock, valued at approximately $15,604,801.52. This represents a 10.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Ravi Mohan Valiyaveettil sold 1,262 shares of the business’s stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $550.00, for a total value of $694,100.00. Following the completion of the sale, the chief technology officer owned 25,985 shares in the company, valued at approximately $14,291,750. The trade was a 4.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 59,816 shares of company stock worth $34,542,867 over the last 90 days. Corporate insiders own 6.10% of the company’s stock.

Institutional Investors Weigh In On Credit Acceptance

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CACC. M&T Bank Corp purchased a new stake in Credit Acceptance during the fourth quarter valued at about $208,294,000. Boston Partners purchased a new position in shares of Credit Acceptance in the third quarter worth about $206,327,000. Universal Beteiligungs und Servicegesellschaft mbH increased its stake in shares of 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 in the last quarter. Smith Thomas W bought a new stake in shares of Credit Acceptance in the fourth quarter valued at approximately $42,083,000. Finally, Renaissance Technologies LLC lifted its stake in shares of Credit Acceptance by 1,078.0% during the 1st quarter. Renaissance Technologies LLC now owns 63,468 shares of the credit services provider’s stock valued at $26,876,000 after buying an additional 58,080 shares in the last quarter. 81.71% of the stock is currently 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.