TD Cowen Upgrades Credit Acceptance (NASDAQ:CACC) to “Hold”

Credit Acceptance (NASDAQ:CACC) was upgraded by research analysts at TD Cowen from a “sell” rating to a “hold” rating in a research report issued on Thursday, MarketBeat Ratings reports. The brokerage currently has a $460.00 price target on the credit services provider’s stock. TD Cowen’s target price would indicate a potential downside of 3.43% from the company’s previous close.

CACC has been the subject of several other reports. Cowen restated a “sell” rating on shares of Credit Acceptance in a report on Friday, October 31st. Weiss Ratings reissued a “hold (c)” rating on shares of Credit Acceptance in a research report on Wednesday, October 8th. Four analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $480.00.

Credit Acceptance Stock Up 2.2%

Shares of CACC stock opened at $476.32 on Thursday. Credit Acceptance has a twelve month low of $401.90 and a twelve month high of $560.00. The stock has a market cap of $5.25 billion, a P/E ratio of 12.61 and a beta of 1.24. The stock has a 50 day moving average of $451.53 and a 200 day moving average of $481.37. The company has a current ratio of 15.81, a quick ratio of 15.81 and a debt-to-equity ratio of 3.94.

Credit Acceptance (NASDAQ:CACC) last released its quarterly earnings data on Thursday, October 30th. The credit services provider reported $10.28 earnings per share for the quarter, beating analysts’ consensus estimates of $9.61 by $0.67. The company had revenue of $405.10 million during the quarter, compared to analysts’ expectations of $592.19 million. Credit Acceptance had a net margin of 19.70% and a return on equity of 27.88%. The firm’s revenue for the quarter was up 5.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $9.25 earnings per share. As a group, sell-side analysts expect that Credit Acceptance will post 53.24 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the company. Global Retirement Partners LLC increased its stake in shares of Credit Acceptance by 2.7% during the third quarter. Global Retirement Partners LLC now owns 882 shares of the credit services provider’s stock worth $412,000 after buying an additional 23 shares during the period. Russell Investments Group Ltd. increased its position in shares of Credit Acceptance by 5.3% in the 3rd quarter. Russell Investments Group Ltd. now owns 721 shares of the credit services provider’s stock valued at $337,000 after purchasing an additional 36 shares during the last quarter. Greenline Partners LLC raised its holdings in shares of Credit Acceptance by 0.3% in the 3rd quarter. Greenline Partners LLC now owns 13,450 shares of the credit services provider’s stock valued at $6,280,000 after purchasing an additional 36 shares in the last quarter. Ameriprise Financial Inc. lifted its position in shares of Credit Acceptance by 2.0% during the 2nd quarter. Ameriprise Financial Inc. now owns 1,929 shares of the credit services provider’s stock worth $983,000 after purchasing an additional 38 shares during the last quarter. Finally, Creative Planning grew its stake in shares of Credit Acceptance by 8.1% during the third quarter. Creative Planning now owns 572 shares of the credit services provider’s stock worth $267,000 after purchasing an additional 43 shares in the last quarter. 81.71% of the stock is currently owned by hedge funds and other 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.