Wall Street analysts expect Credit Acceptance Corp. (NASDAQ:CACC) to post earnings per share (EPS) of $6.11 for the current fiscal quarter, Zacks reports. Three analysts have made estimates for Credit Acceptance’s earnings, with estimates ranging from $5.59 to $6.55. Credit Acceptance reported earnings of $4.72 per share during the same quarter last year, which indicates a positive year-over-year growth rate of 29.4%. The company is scheduled to issue its next quarterly earnings report on Monday, May 7th.
On average, analysts expect that Credit Acceptance will report full year earnings of $26.31 per share for the current year, with EPS estimates ranging from $24.08 to $27.82. For the next financial year, analysts forecast that the company will report earnings of $28.36 per share, with EPS estimates ranging from $26.29 to $31.00. Zacks’ EPS calculations are a mean average based on a survey of sell-side analysts that cover Credit Acceptance.
Credit Acceptance (NASDAQ:CACC) last issued its earnings results on Tuesday, January 30th. The credit services provider reported $5.16 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $5.53 by ($0.37). Credit Acceptance had a return on equity of 30.18% and a net margin of 42.36%. The company had revenue of $287.30 million during the quarter, compared to analyst estimates of $287.37 million. During the same period in the previous year, the company posted $4.79 earnings per share. The company’s quarterly revenue was up 12.1% on a year-over-year basis.
A number of research firms recently commented on CACC. BidaskClub upgraded Credit Acceptance from a “buy” rating to a “strong-buy” rating in a research report on Saturday, January 13th. Zacks Investment Research upgraded Credit Acceptance from a “hold” rating to a “strong-buy” rating and set a $390.00 price target on the stock in a research report on Friday, January 12th. Oppenheimer increased their price target on Credit Acceptance from $355.00 to $387.00 and gave the stock an “outperform” rating in a research report on Wednesday, January 31st. Credit Suisse Group restated a “sell” rating and set a $270.00 price target on shares of Credit Acceptance in a research report on Monday, January 8th. Finally, Stephens set a $257.00 price target on Credit Acceptance and gave the stock a “sell” rating in a research report on Wednesday, January 3rd. Four investment analysts have rated the stock with a sell rating, five have issued a hold rating, one has assigned a buy rating and two have issued a strong buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and a consensus target price of $283.22.
In other Credit Acceptance news, insider John S. Soave sold 2,500 shares of the stock in a transaction on Friday, March 16th. The stock was sold at an average price of $337.01, for a total value of $842,525.00. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Kenneth Booth sold 2,000 shares of the stock in a transaction on Tuesday, March 6th. The shares were sold at an average price of $334.50, for a total value of $669,000.00. The disclosure for this sale can be found here. Insiders sold a total of 58,924 shares of company stock worth $19,253,640 over the last quarter. Corporate insiders own 5.80% of the company’s stock.
A number of institutional investors and hedge funds have recently made changes to their positions in CACC. Schroder Investment Management Group boosted its position in Credit Acceptance by 5,483.8% in the 4th quarter. Schroder Investment Management Group now owns 206,600 shares of the credit services provider’s stock valued at $66,831,000 after buying an additional 202,900 shares during the last quarter. CAS Investment Partners LLC bought a new position in Credit Acceptance in the 4th quarter valued at $24,903,000. Mackenzie Financial Corp bought a new position in Credit Acceptance in the 3rd quarter valued at $6,338,000. Arrowstreet Capital Limited Partnership bought a new position in Credit Acceptance in the 4th quarter valued at $6,269,000. Finally, Teachers Advisors LLC boosted its position in shares of Credit Acceptance by 71.6% in the 4th quarter. Teachers Advisors LLC now owns 45,120 shares of the credit services provider’s stock worth $14,595,000 after purchasing an additional 18,821 shares during the last quarter. Hedge funds and other institutional investors own 70.34% of the company’s stock.
Credit Acceptance stock traded down $8.69 during midday trading on Thursday, reaching $328.27. The company had a trading volume of 79,658 shares, compared to its average volume of 160,501. The company has a market cap of $6,494.16, a price-to-earnings ratio of 13.62, a PEG ratio of 0.71 and a beta of 0.61. Credit Acceptance has a 1-year low of $182.50 and a 1-year high of $377.82. The company has a debt-to-equity ratio of 1.99, a quick ratio of 24.00 and a current ratio of 24.00.
About Credit Acceptance
Credit Acceptance Corporation provides financing programs, and related products and services to independent and franchised automobile dealers in the United States. The company advances money to dealers in exchange for the right to service the underlying consumer loans; and buys the consumer loans from the dealers and keeps various amounts collected from the consumers.
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