Jonathan Lum Sells 6,000 Shares of Credit Acceptance (NASDAQ:CACC) Stock

Credit Acceptance Corporation (NASDAQ:CACC) COO Jonathan Lum sold 6,000 shares of the stock in a transaction on Wednesday, June 24th. The shares were sold at an average price of $600.00, for a total transaction of $3,600,000.00. Following the transaction, the chief operating officer directly owned 31,609 shares in the company, valued at approximately $18,965,400. The trade was a 15.95% 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.

Jonathan Lum also recently made the following trade(s):

• On Monday, April 20th, Jonathan Lum sold 3,000 shares of Credit Acceptance stock. The stock was sold at an average price of $535.00, for a total transaction of $1,605,000.00.

Credit Acceptance Stock Up 0.9%

CACC opened at $629.62 on Friday. The company has a market cap of $6.59 billion, a PE ratio of 15.65 and a beta of 1.38. Credit Acceptance Corporation has a twelve month low of $401.90 and a twelve month high of $638.55. The company has a 50-day moving average price of $548.53 and a 200 day moving average price 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 (NASDAQ:CACC) last issued its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $10.73 by ($0.02). Credit Acceptance had a return on equity of 29.95% and a net margin of 19.49%.The firm had revenue of $406.00 million during the quarter, compared to analyst estimates of $580.77 million. During the same period in the prior year, the firm earned $9.35 earnings per share. The business’s revenue was up 1.6% on a year-over-year basis. Sell-side analysts expect that Credit Acceptance Corporation will post 47.5 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on CACC shares. TD Cowen boosted their price target on shares of Credit Acceptance from $450.00 to $500.00 and gave the stock a “hold” rating in a research report on Wednesday, May 6th. Stephens increased their price objective on shares of Credit Acceptance from $450.00 to $540.00 and gave the company an “equal weight” rating in a report on Friday, April 17th. Zacks Research lowered shares of Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 13th. Finally, Weiss Ratings upgraded 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, Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $520.00.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Royal Bank of Canada grew its holdings in shares of Credit Acceptance by 31.6% during the 1st quarter. Royal Bank of Canada now owns 1,916 shares of the credit services provider’s stock worth $989,000 after purchasing an additional 460 shares during the period. AQR Capital Management LLC raised its holdings in Credit Acceptance by 230.6% in the 1st quarter. AQR Capital Management LLC now owns 7,885 shares of the credit services provider’s stock valued at $3,961,000 after buying an additional 5,500 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised 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 during the period. Creative Planning lifted its position in Credit Acceptance by 35.6% in the second quarter. Creative Planning now owns 529 shares of the credit services provider’s stock valued at $269,000 after buying an additional 139 shares during the last quarter. Finally, JPMorgan Chase & Co. lifted its position in Credit Acceptance by 4.8% in the second quarter. JPMorgan Chase & Co. now owns 5,077 shares of the credit services provider’s stock valued at $2,586,000 after buying an additional 232 shares during the last quarter. 81.71% of the stock is currently owned by hedge funds and other institutional investors.

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.