TD Cowen Upgrades Credit Acceptance (NASDAQ:CACC) to Hold

Credit Acceptance (NASDAQ:CACC) was upgraded by equities research analysts at TD Cowen from a “sell” rating to a “hold” rating in a report released on Thursday, Marketbeat.com reports. The firm presently has a $460.00 price target on the credit services provider’s stock. TD Cowen’s target price points to a potential downside of 0.13% from the stock’s current price.

CACC has been the topic of a number of other research reports. Cowen reissued a “sell” rating on shares of Credit Acceptance in a report on Friday, October 31st. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Credit Acceptance in a research report on Wednesday, October 8th. Three equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Reduce” and a consensus target price of $480.00.

Credit Acceptance Trading Down 1.1%

Shares of NASDAQ:CACC opened at $460.58 on Thursday. Credit Acceptance has a 52 week low of $401.90 and a 52 week high of $560.00. The company’s 50 day moving average is $450.67 and its two-hundred day moving average is $481.65. The company has a market cap of $5.08 billion, a PE ratio of 12.19 and a beta of 1.24. The company has a current ratio of 15.81, a quick ratio of 15.81 and a debt-to-equity ratio of 3.94.

Credit Acceptance (NASDAQ:CACC) last issued its earnings results on Thursday, October 30th. The credit services provider reported $10.28 earnings per share for the quarter, topping the consensus estimate of $9.61 by $0.67. Credit Acceptance had a return on equity of 27.88% and a net margin of 19.70%.The business had revenue of $405.10 million for the quarter, compared to analyst estimates of $592.19 million. During the same quarter last year, the company earned $9.25 EPS. The business’s quarterly revenue was up 5.8% on a year-over-year basis. Equities analysts predict that Credit Acceptance will post 53.24 earnings per share for the current fiscal year.

Institutional Trading of Credit Acceptance

Several institutional investors have recently made changes to their positions in the stock. Boston Partners acquired a new stake in shares of Credit Acceptance during the 3rd quarter worth $206,327,000. First Trust Advisors LP purchased a new stake in Credit Acceptance during the second quarter valued at about $26,422,000. Smead Capital Management Inc. increased its stake in Credit Acceptance by 17.0% during the second quarter. Smead Capital Management Inc. now owns 216,811 shares of the credit services provider’s stock worth $110,450,000 after acquiring an additional 31,438 shares during the last quarter. Twin Lions Management LLC raised its holdings in shares of Credit Acceptance by 51.9% in the 2nd quarter. Twin Lions Management LLC now owns 69,051 shares of the credit services provider’s stock worth $35,177,000 after purchasing an additional 23,580 shares during the period. Finally, BNP Paribas Financial Markets raised its holdings in shares of Credit Acceptance by 206.4% in the 3rd quarter. BNP Paribas Financial Markets now owns 27,997 shares of the credit services provider’s stock worth $13,073,000 after purchasing an additional 18,861 shares during the period. 81.71% of the stock is 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.