Credit Acceptance (NASDAQ:CACC) Announces Earnings Results

Credit Acceptance (NASDAQ:CACC) posted its quarterly earnings results on Tuesday. The credit services provider reported $12.12 earnings per share for the quarter, missing analysts’ consensus estimates of $12.20 by ($0.08), FiscalAI reports. The company had revenue of $415.00 million during the quarter, compared to analyst estimates of $588.07 million. Credit Acceptance had a net margin of 19.49% and a return on equity of 29.95%.

Credit Acceptance Trading Up 2.6%

Shares of NASDAQ CACC traded up $14.88 during trading on Tuesday, reaching $587.85. The company had a trading volume of 118,143 shares, compared to its average volume of 182,593. The company’s fifty day moving average price is $591.94 and its 200-day moving average price is $523.95. Credit Acceptance has a 12 month low of $401.90 and a 12 month high of $668.86. The stock has a market cap of $6.15 billion, a P/E ratio of 14.61 and a beta of 1.37. The company has a quick ratio of 13.62, a current ratio of 13.62 and a debt-to-equity ratio of 4.09.

Insider Buying and Selling

In other Credit Acceptance news, CFO Jay D. Martin sold 3,000 shares of the company’s stock in a transaction on Wednesday, June 24th. The shares were sold at an average price of $601.04, for a total transaction of $1,803,120.00. Following the sale, the chief financial officer 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 legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Nicholas J. Elliott sold 2,306 shares of Credit Acceptance stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $629.99, for a total value of $1,452,756.94. Following the completion of the transaction, the insider directly owned 20,897 shares of the company’s stock, valued at approximately $13,164,901.03. This trade represents a 9.94% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 47,304 shares of company stock worth $29,186,331. Corporate insiders own 6.10% of the company’s stock.

Institutional Investors Weigh In On Credit Acceptance

Hedge funds have recently added to or reduced their stakes in the business. Royal Bank of Canada lifted its position in shares of Credit Acceptance by 31.6% during the 1st quarter. Royal Bank of Canada now owns 1,916 shares of the credit services provider’s stock valued at $989,000 after acquiring an additional 460 shares during the period. AQR Capital Management LLC increased its stake in Credit Acceptance by 230.6% in the first quarter. AQR Capital Management LLC now owns 7,885 shares of the credit services provider’s stock valued at $3,961,000 after purchasing an additional 5,500 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Credit Acceptance by 3.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 23,886 shares of the credit services provider’s stock valued at $12,334,000 after purchasing an additional 900 shares during the period. Creative Planning boosted its position in shares of Credit Acceptance by 35.6% during the 2nd quarter. Creative Planning now owns 529 shares of the credit services provider’s stock worth $269,000 after purchasing an additional 139 shares in the last quarter. Finally, JPMorgan Chase & Co. grew its stake in shares of Credit Acceptance by 4.8% in the 2nd quarter. JPMorgan Chase & Co. now owns 5,077 shares of the credit services provider’s stock valued at $2,586,000 after buying an additional 232 shares during the period. 81.71% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on CACC shares. TD Cowen increased their price objective on shares of Credit Acceptance from $500.00 to $575.00 and gave the company a “hold” rating in a research note on Tuesday, July 7th. 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 report on Friday, April 17th. Zacks Research cut Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 13th. Finally, Weiss Ratings raised Credit Acceptance from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, July 16th. One analyst has rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $557.50.

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.