Credit Acceptance (NASDAQ:CACC) Hits New 12-Month High – Here’s Why

Credit Acceptance Corporation (NASDAQ:CACC) shares hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $638.55 and last traded at $623.8750, with a volume of 208842 shares traded. The stock had previously closed at $628.86.

Analyst Upgrades and Downgrades

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

Credit Acceptance Trading Down 0.2%

The company has a debt-to-equity ratio of 4.09, a quick ratio of 13.62 and a current ratio of 13.62. The firm has a 50-day moving average of $553.59 and a 200-day moving average of $498.46. The firm has a market capitalization of $6.66 billion, a P/E ratio of 15.82 and a beta of 1.38.

Credit Acceptance (NASDAQ:CACC) last announced its quarterly earnings data on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share for the quarter, missing the consensus estimate of $10.73 by ($0.02). The company had revenue of $406.00 million during the quarter, compared to the consensus estimate of $580.77 million. Credit Acceptance had a net margin of 19.49% and a return on equity of 29.95%. The business’s revenue for the quarter was up 1.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $9.35 EPS. On average, equities research analysts anticipate that Credit Acceptance Corporation will post 47.5 EPS for the current fiscal year.

Insider Activity at Credit Acceptance

In other Credit Acceptance news, insider Nicholas J. Elliott sold 2,306 shares of the business’s stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $629.99, for a total value of $1,452,756.94. Following the transaction, the insider owned 20,897 shares in the company, valued at approximately $13,164,901.03. The trade was a 9.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jay D. Martin sold 3,000 shares of the company’s stock in a transaction dated 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 transaction, the chief financial officer directly owned 25,963 shares of the company’s stock, valued at approximately $15,604,801.52. This trade represents a 10.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 59,816 shares of company stock worth $34,542,867 over the last ninety days. Insiders own 6.10% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. M&T Bank Corp bought a new stake in shares of Credit Acceptance in the 4th quarter worth approximately $208,294,000. Boston Partners lifted its stake in Credit Acceptance by 3.4% in the fourth quarter. Boston Partners now owns 456,253 shares of the credit services provider’s stock worth $202,373,000 after acquiring an additional 14,877 shares during the period. Dimensional Fund Advisors LP increased its position in Credit Acceptance by 3.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 230,715 shares of the credit services provider’s stock valued at $97,701,000 after purchasing an additional 6,843 shares during the period. Smead Capital Management Inc. increased its position in Credit Acceptance by 17.0% during the 2nd quarter. Smead Capital Management Inc. now owns 216,811 shares of the credit services provider’s stock valued at $110,450,000 after purchasing an additional 31,438 shares during the period. Finally, Universal Beteiligungs und Servicegesellschaft mbH raised its holdings in Credit Acceptance by 764.8% in the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 203,879 shares of the credit services provider’s stock worth $91,652,000 after purchasing an additional 180,304 shares in the last quarter. Institutional investors own 81.71% of the company’s stock.

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.