Credit Acceptance Corp. (NASDAQ:CACC) Sees Large Increase in Short Interest

Credit Acceptance Corp. (NASDAQ:CACC) was the recipient of a significant growth in short interest during the month of November. As of November 29th, there was short interest totalling 899,300 shares, a growth of 10.1% from the November 14th total of 816,900 shares. Based on an average daily volume of 96,900 shares, the short-interest ratio is currently 9.3 days. Approximately 7.3% of the company’s shares are short sold.

Several research analysts have recently issued reports on the stock. Credit Suisse Group raised their target price on shares of Credit Acceptance from $380.00 to $390.00 and gave the stock an “underperform” rating in a report on Thursday, November 14th. BidaskClub cut shares of Credit Acceptance from a “sell” rating to a “strong sell” rating in a report on Wednesday, October 30th. ValuEngine cut shares of Credit Acceptance from a “hold” rating to a “sell” rating in a report on Tuesday, December 3rd. Finally, BMO Capital Markets cut their price target on shares of Credit Acceptance to $472.00 and set an “in-line” rating on the stock in a report on Tuesday, November 5th. Four analysts have rated the stock with a sell rating and five have issued a hold rating to the company’s stock. The stock presently has an average rating of “Hold” and a consensus price target of $444.17.

In other news, CEO Brett A. Roberts sold 9,937 shares of the firm’s stock in a transaction that occurred on Friday, November 8th. The shares were sold at an average price of $427.63, for a total value of $4,249,359.31. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Kenneth Booth bought 1,250 shares of the business’s stock in a transaction dated Tuesday, November 5th. The stock was purchased at an average price of $410.61 per share, for a total transaction of $513,262.50. The disclosure for this purchase can be found here. 5.00% of the stock is currently owned by company insiders.

Several institutional investors and hedge funds have recently bought and sold shares of CACC. Nuveen Asset Management LLC raised its position in shares of Credit Acceptance by 390.9% in the 2nd quarter. Nuveen Asset Management LLC now owns 163,973 shares of the credit services provider’s stock worth $79,336,000 after purchasing an additional 130,573 shares during the last quarter. APG Asset Management N.V. increased its holdings in Credit Acceptance by 553.9% in the 2nd quarter. APG Asset Management N.V. now owns 83,700 shares of the credit services provider’s stock worth $35,561,000 after buying an additional 70,900 shares in the last quarter. Renaissance Technologies LLC increased its holdings in Credit Acceptance by 2,684.5% in the 2nd quarter. Renaissance Technologies LLC now owns 47,003 shares of the credit services provider’s stock worth $22,741,000 after buying an additional 45,315 shares in the last quarter. Victory Capital Management Inc. increased its holdings in Credit Acceptance by 339.4% in the 2nd quarter. Victory Capital Management Inc. now owns 30,533 shares of the credit services provider’s stock worth $14,773,000 after buying an additional 23,584 shares in the last quarter. Finally, Bank of America Corp DE increased its holdings in Credit Acceptance by 179.0% in the 2nd quarter. Bank of America Corp DE now owns 32,789 shares of the credit services provider’s stock worth $15,865,000 after buying an additional 21,038 shares in the last quarter. 59.69% of the stock is owned by hedge funds and other institutional investors.

CACC opened at $441.14 on Friday. The stock has a 50-day moving average price of $434.34 and a 200-day moving average price of $461.90. The company has a debt-to-equity ratio of 1.75, a current ratio of 29.49 and a quick ratio of 29.49. The firm has a market cap of $8.11 billion, a PE ratio of 15.54, a P/E/G ratio of 1.12 and a beta of 0.69. Credit Acceptance has a 1 year low of $356.12 and a 1 year high of $509.99.

Credit Acceptance (NASDAQ:CACC) last posted its quarterly earnings results on Friday, November 1st. The credit services provider reported $8.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $8.86 by $0.03. The firm had revenue of $378.70 million during the quarter, compared to analyst estimates of $380.69 million. Credit Acceptance had a return on equity of 29.54% and a net margin of 44.69%. Credit Acceptance’s quarterly revenue was up 14.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $7.56 EPS. As a group, sell-side analysts anticipate that Credit Acceptance will post 34.89 EPS for the current year.

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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