Kenneth Booth Sells 2,000 Shares of Credit Acceptance (NASDAQ:CACC) Stock

Credit Acceptance Corporation (NASDAQ:CACC) Director Kenneth Booth sold 2,000 shares of the stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $508.00, for a total value of $1,016,000.00. Following the transaction, the director owned 22,832 shares in the company, valued at $11,598,656. This trade represents a 8.05% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink.

Credit Acceptance Price Performance

Shares of NASDAQ CACC opened at $485.14 on Friday. The company has a debt-to-equity ratio of 3.94, a quick ratio of 15.81 and a current ratio of 15.81. The firm has a fifty day moving average of $467.45 and a 200 day moving average of $474.34. The firm has a market cap of $5.35 billion, a PE ratio of 13.29 and a beta of 1.27. Credit Acceptance Corporation has a one year low of $401.90 and a one year high of $549.75.

Credit Acceptance (NASDAQ:CACC) last announced its earnings results on Thursday, January 29th. The credit services provider reported $11.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $10.30 by $1.05. The business had revenue of $408.20 million for the quarter, compared to analyst estimates of $582.63 million. Credit Acceptance had a net margin of 18.29% and a return on equity of 28.46%. The company’s revenue for the quarter was up 2.5% compared to the same quarter last year. During the same quarter last year, the business earned $10.17 earnings per share. As a group, research analysts predict that Credit Acceptance Corporation will post 53.24 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Royal Bank of Canada increased its holdings in shares of Credit Acceptance by 31.6% in the first quarter. Royal Bank of Canada now owns 1,916 shares of the credit services provider’s stock valued at $989,000 after purchasing an additional 460 shares during the last quarter. AQR Capital Management LLC boosted its stake in Credit Acceptance by 230.6% during the first quarter. AQR Capital Management LLC now owns 7,885 shares of the credit services provider’s stock worth $3,961,000 after buying an additional 5,500 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Credit Acceptance by 3.9% in the 1st 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 buying an additional 900 shares in the last quarter. KLP Kapitalforvaltning AS increased its stake in shares of Credit Acceptance by 7.7% in the 2nd quarter. KLP Kapitalforvaltning AS now owns 1,400 shares of the credit services provider’s stock worth $713,000 after acquiring an additional 100 shares during the last quarter. Finally, Envestnet Portfolio Solutions Inc. increased its stake in shares of Credit Acceptance by 9.8% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 818 shares of the credit services provider’s stock worth $417,000 after acquiring an additional 73 shares during the last quarter. 81.71% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several research firms have commented on CACC. Zacks Research upgraded Credit Acceptance from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, February 3rd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Credit Acceptance in a research note on Wednesday, January 21st. Finally, TD Cowen increased their price objective on Credit Acceptance from $460.00 to $470.00 and gave the company a “hold” rating in a research note on Friday, January 30th. One equities research analyst has rated the stock with a Strong Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $470.00.

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.