Credit Acceptance (NASDAQ:CACC) Stock Passes Above Two Hundred Day Moving Average – Here’s What Happened

Credit Acceptance Corporation (NASDAQ:CACC)’s stock price crossed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $510.94 and traded as high as $631.44. Credit Acceptance shares last traded at $617.78, with a volume of 134,322 shares changing hands.

Analyst Ratings Changes

CACC has been the topic of several analyst reports. Weiss Ratings raised Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, May 8th. Zacks Research downgraded Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 13th. Stephens upped their price objective 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. Finally, TD Cowen increased their price objective on shares of Credit Acceptance from $500.00 to $575.00 and gave the stock a “hold” rating in a research note on Tuesday, July 7th. Four equities research analysts have rated the stock with a Hold rating, According to MarketBeat, Credit Acceptance presently has a consensus rating of “Hold” and an average price target of $557.50.

Credit Acceptance Price Performance

The firm has a market capitalization of $6.46 billion, a P/E ratio of 15.35 and a beta of 1.36. The company has a quick ratio of 13.62, a current ratio of 13.62 and a debt-to-equity ratio of 4.09. The business’s 50 day moving average is $577.87 and its 200-day moving average is $510.94.

Credit Acceptance (NASDAQ:CACC) last released its earnings results 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). Credit Acceptance had a return on equity of 29.95% and a net margin of 19.49%.The business had revenue of $406.00 million for the quarter, compared to the consensus estimate of $580.77 million. During the same quarter in the previous year, the company earned $9.35 earnings per share. The firm’s revenue for the quarter was up 1.6% on a year-over-year basis. As a group, sell-side analysts predict that Credit Acceptance Corporation will post 47.5 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Wendy A. Rummler sold 4,062 shares of the firm’s stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $525.67, for a total value of $2,135,271.54. Following the sale, the insider directly owned 19,547 shares of the company’s stock, valued at $10,275,271.49. This trade represents a 17.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Jill Foss Watson sold 11,000 shares of the firm’s stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $653.24, for a total value of $7,185,640.00. Following the completion of the sale, the insider directly owned 49,346 shares in the company, valued at $32,234,781.04. This trade represents a 18.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 70,816 shares of company stock worth $41,728,507. 6.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. State of Wyoming bought a new position in shares of Credit Acceptance in the fourth quarter worth about $27,000. Kestra Advisory Services LLC acquired a new position in Credit Acceptance during the 4th quarter worth approximately $27,000. Parallel Advisors LLC increased its position in Credit Acceptance by 590.0% during the 1st quarter. Parallel Advisors LLC now owns 69 shares of the credit services provider’s stock worth $29,000 after purchasing an additional 59 shares in the last quarter. Altshuler Shaham Ltd lifted its stake in Credit Acceptance by 37.3% in the 1st quarter. Altshuler Shaham Ltd now owns 70 shares of the credit services provider’s stock valued at $30,000 after purchasing an additional 19 shares during the last quarter. Finally, Rockefeller Capital Management L.P. lifted its stake in Credit Acceptance by 53.3% in the 4th quarter. Rockefeller Capital Management L.P. now owns 69 shares of the credit services provider’s stock valued at $31,000 after purchasing an additional 24 shares during the last quarter. Institutional investors and hedge funds own 81.71% 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.