Erin Kerber Sells 2,937 Shares of Credit Acceptance (NASDAQ:CACC) Stock

Credit Acceptance Corporation (NASDAQ:CACC) insider Erin Kerber sold 2,937 shares of the stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $627.19, for a total transaction of $1,842,057.03. Following the transaction, the insider directly owned 25,711 shares in the company, valued at approximately $16,125,682.09. The trade was a 10.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Credit Acceptance Stock Up 0.9%

CACC stock opened at $629.62 on Friday. The stock has a market capitalization of $6.59 billion, a P/E ratio of 15.65 and a beta of 1.38. The firm has a 50-day simple moving average of $548.53 and a 200-day simple moving average of $495.82. The company has a quick ratio of 13.62, a current ratio of 13.62 and a debt-to-equity ratio of 4.09. Credit Acceptance Corporation has a 52 week low of $401.90 and a 52 week high of $638.55.

Credit Acceptance (NASDAQ:CACC) last issued its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share for the quarter, missing analysts’ consensus estimates of $10.73 by ($0.02). Credit Acceptance had a net margin of 19.49% and a return on equity of 29.95%. The company had revenue of $406.00 million during the quarter, compared to analysts’ expectations of $580.77 million. During the same period in the prior year, the business posted $9.35 earnings per share. The company’s quarterly revenue was up 1.6% compared to the same quarter last year. Equities analysts forecast that Credit Acceptance Corporation will post 47.5 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Credit Acceptance

Several hedge funds and other institutional investors have recently made changes to their positions in CACC. Royal Bank of Canada lifted its position in Credit Acceptance by 31.6% during the first quarter. Royal Bank of Canada now owns 1,916 shares of the credit services provider’s stock worth $989,000 after buying an additional 460 shares in 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. Creative Planning grew its holdings in Credit Acceptance by 35.6% in the 2nd quarter. Creative Planning now owns 529 shares of the credit services provider’s stock valued at $269,000 after buying an additional 139 shares in the last quarter. Finally, JPMorgan Chase & Co. increased 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 worth $2,586,000 after acquiring an additional 232 shares during the last quarter. Institutional investors and hedge funds own 81.71% of the company’s stock.

Wall Street Analysts Forecast Growth

CACC has been the topic of a number of research analyst reports. Zacks Research lowered Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 13th. Stephens raised their price objective on Credit Acceptance from $450.00 to $540.00 and gave the company an “equal weight” rating in a report on Friday, April 17th. TD Cowen lifted their target price on shares of Credit Acceptance from $450.00 to $500.00 and gave the stock a “hold” rating in a research note on Wednesday, May 6th. Finally, Weiss Ratings upgraded shares of Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, May 8th. Four analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $520.00.

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.