Illinois Municipal Retirement Fund Acquires New Holdings in Credit Acceptance Corporation $CACC

Illinois Municipal Retirement Fund acquired a new position in Credit Acceptance Corporation (NASDAQ:CACC) during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund acquired 1,492 shares of the credit services provider’s stock, valued at approximately $697,000.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in CACC. Smead Capital Management Inc. raised its stake in Credit Acceptance by 17.0% in the second quarter. Smead Capital Management Inc. now owns 216,811 shares of the credit services provider’s stock valued at $110,450,000 after buying an additional 31,438 shares during the last quarter. RV Capital AG increased its holdings in shares of Credit Acceptance by 1.2% during the third quarter. RV Capital AG now owns 130,431 shares of the credit services provider’s stock valued at $60,902,000 after acquiring an additional 1,502 shares in the last quarter. Twin Lions Management LLC increased its holdings in shares of Credit Acceptance by 51.9% during the second quarter. Twin Lions Management LLC now owns 69,051 shares of the credit services provider’s stock valued at $35,177,000 after acquiring an additional 23,580 shares in the last quarter. First Trust Advisors LP purchased a new position in shares of Credit Acceptance in the 2nd quarter valued at approximately $26,422,000. Finally, Envestnet Asset Management Inc. boosted its stake in Credit Acceptance by 8.0% in the 3rd quarter. Envestnet Asset Management Inc. now owns 34,990 shares of the credit services provider’s stock worth $16,338,000 after purchasing an additional 2,583 shares in the last quarter. 81.71% of the stock is currently owned by hedge funds and other institutional investors.

Credit Acceptance Stock Performance

Shares of NASDAQ CACC opened at $485.65 on Friday. The company has a 50 day simple moving average of $469.67 and a two-hundred day simple moving average of $474.18. The stock has a market cap of $5.22 billion, a price-to-earnings ratio of 13.31 and a beta of 1.27. The company has a current ratio of 16.91, a quick ratio of 15.81 and a debt-to-equity ratio of 4.10. Credit Acceptance Corporation has a 12 month low of $401.90 and a 12 month high of $549.75.

Credit Acceptance (NASDAQ:CACC) last released its quarterly earnings data on Thursday, January 29th. The credit services provider reported $11.35 earnings per share for the quarter, topping analysts’ consensus estimates of $10.30 by $1.05. The firm 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 28.86%. The business’s quarterly revenue was up 2.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $10.17 earnings per share. As a group, analysts predict that Credit Acceptance Corporation will post 53.24 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on CACC. Weiss Ratings reissued a “hold (c)” rating on shares of Credit Acceptance in a research report on Wednesday, January 21st. TD Cowen boosted their price objective on shares of Credit Acceptance from $460.00 to $470.00 and gave the company a “hold” rating in a report on Friday, January 30th. Finally, Zacks Research upgraded Credit Acceptance from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, February 3rd. 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, Credit Acceptance has a consensus rating of “Moderate Buy” and an average target price of $470.00.

Insider Buying and Selling at Credit Acceptance

In related news, insider Wendy A. Rummler sold 5,236 shares of Credit Acceptance stock in a transaction that occurred on Friday, January 30th. The stock was sold at an average price of $493.44, for a total transaction of $2,583,651.84. Following the completion of the transaction, the insider directly owned 20,772 shares in the company, valued at approximately $10,249,735.68. This trade represents a 20.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Kenneth Booth sold 2,000 shares of the business’s 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 completion of the transaction, the director directly owned 22,832 shares of the company’s stock, valued at $11,598,656. The trade was a 8.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 11,576 shares of company stock worth $5,824,119. Insiders own 6.60% of the company’s stock.

Credit Acceptance Company Profile

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.