Erin Kerber Sells 5,720 Shares of Credit Acceptance (NASDAQ:CACC) Stock

Credit Acceptance Corporation (NASDAQ:CACC) insider Erin Kerber sold 5,720 shares of Credit Acceptance stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $629.80, for a total transaction of $3,602,456.00. Following the transaction, the insider owned 25,711 shares of the company’s stock, valued at $16,192,787.80. This represents a 18.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Credit Acceptance Trading Up 3.0%

CACC opened at $655.72 on Thursday. The company has a debt-to-equity ratio of 4.09, a current ratio of 13.62 and a quick ratio of 13.62. Credit Acceptance Corporation has a fifty-two week low of $401.90 and a fifty-two week high of $663.43. The firm has a market capitalization of $6.86 billion, a PE ratio of 16.30 and a beta of 1.36. The company’s 50-day moving average is $555.85 and its 200 day moving average is $499.71.

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

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on CACC. Zacks Research downgraded Credit Acceptance from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 13th. TD Cowen raised their price objective on Credit Acceptance from $450.00 to $500.00 and gave the company a “hold” rating in a research note on Wednesday, May 6th. Weiss Ratings raised shares of Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, May 8th. Finally, Stephens upped 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 note on Friday, April 17th. Four equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat, Credit Acceptance presently has a consensus rating of “Hold” and a consensus price target of $520.00.

Hedge Funds Weigh In On Credit Acceptance

Several institutional investors have recently modified their holdings of the business. Royal Bank of Canada lifted its holdings 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 acquiring an additional 460 shares during the period. AQR Capital Management LLC grew its stake 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 purchasing an additional 5,500 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Credit Acceptance by 3.9% during 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 purchasing an additional 900 shares during the last quarter. Creative Planning increased its position in shares of Credit Acceptance by 35.6% during the 2nd quarter. Creative Planning now owns 529 shares of the credit services provider’s stock valued at $269,000 after purchasing an additional 139 shares during the last quarter. Finally, JPMorgan Chase & Co. raised its stake in shares of Credit Acceptance by 4.8% during the 2nd quarter. JPMorgan Chase & Co. now owns 5,077 shares of the credit services provider’s stock worth $2,586,000 after purchasing an additional 232 shares during the period. 81.71% of the stock is owned by institutional investors.

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.