Credit Acceptance (NASDAQ:CACC) Downgraded by Zacks Research to “Strong Sell”

Credit Acceptance (NASDAQ:CACC) was downgraded by investment analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued on Tuesday, Zacks reports.

CACC has been the topic of several other reports. TD Cowen lowered their price objective on Credit Acceptance from $590.00 to $470.00 and set a “hold” rating on the stock in a research report on Friday, October 30th. Weiss Ratings lowered Credit Acceptance from a “buy (b-)” rating to a “hold (c)” rating in a report on Monday. Three investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Reduce” and an average target price of $505.00.

Credit Acceptance Stock Up 3.8%

Shares of Credit Acceptance stock opened at $498.68 on Tuesday. The company has a debt-to-equity ratio of 4.68, a quick ratio of 13.49 and a current ratio of 13.49. The stock has a market capitalization of $5.06 billion, a PE ratio of 10.19 and a beta of 1.45. Credit Acceptance has a 52-week low of $401.90 and a 52-week high of $668.86. The company has a 50-day simple moving average of $557.42 and a two-hundred day simple moving average of $537.69.

Credit Acceptance (NASDAQ:CACC) last posted its quarterly earnings results on Thursday, October 29th. The credit services provider reported $13.01 EPS for the quarter, beating analysts’ consensus estimates of $12.86 by $0.15. The firm had revenue of $420.30 million for the quarter, compared to analysts’ expectations of $596.40 million. Credit Acceptance had a net margin of 14.39% and a return on equity of 33.84%. The business’s revenue for the quarter was up 2.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $10.28 earnings per share. On average, analysts anticipate that Credit Acceptance will post 47.61 EPS for the current fiscal year.

Hedge Funds Weigh In On Credit Acceptance

Several hedge funds and other institutional investors have recently bought and sold shares of CACC. Bank of New York Mellon Corp bought a new stake in shares of Credit Acceptance in the second quarter worth approximately $19,347,000. The Manufacturers Life Insurance Company purchased a new position in shares of Credit Acceptance during the second quarter valued at approximately $1,337,000. Corient Private Wealth LP purchased a new position in shares of Credit Acceptance during the second quarter valued at approximately $856,000. BlackRock Inc. bought a new position in Credit Acceptance during the second quarter valued at approximately $408,849,000. Finally, Jupiter Topco LLC bought a new position in Credit Acceptance during the second quarter valued at approximately $1,812,000. Institutional investors own 81.71% of the company’s stock.

About Credit Acceptance

Credit Acceptance Corporation (NASDAQ:CACC) is a specialized automobile finance company that provides financing programs for consumers who may have difficulty obtaining credit through traditional lenders. The company primarily operates through an indirect lending model, working with automobile dealers who offer financing to customers purchasing new or used vehicles.

Credit Acceptance purchases or services automotive loans originated through its dealer-partner network. Its programs are designed to help dealers sell vehicles to a broader range of consumers, while the company manages loan underwriting, servicing, collections, and related risk-management activities.