Credit Acceptance (NASDAQ:CACC) Sees Large Volume Increase – Should You Buy?

Credit Acceptance Corporation (NASDAQ:CACC) saw unusually-high trading volume on Thursday . Approximately 213,436 shares traded hands during trading, an increase of 22% from the previous session’s volume of 174,810 shares.The stock last traded at $487.1850 and had previously closed at $507.26.

Wall Street Analyst Weigh In

Several brokerages have weighed in on CACC. Zacks Research upgraded Credit Acceptance from a “hold” rating to a “strong-buy” rating in a research note on Tuesday. Weiss Ratings reissued a “hold (c)” rating on shares of Credit Acceptance in a research report on Wednesday, January 21st. Finally, TD Cowen boosted their price target on shares of Credit Acceptance from $460.00 to $470.00 and gave the stock a “hold” rating in a report on Friday, January 30th. One investment analyst has rated the stock with a Strong Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $470.00.

Credit Acceptance Stock Down 2.9%

The company has a current ratio of 15.81, a quick ratio of 15.81 and a debt-to-equity ratio of 3.94. The stock has a market capitalization of $5.43 billion, a P/E ratio of 13.49 and a beta of 1.27. The stock’s 50-day moving average price is $462.71 and its two-hundred day moving average price is $474.72.

Credit Acceptance (NASDAQ:CACC) last posted its quarterly earnings data on Thursday, January 29th. The credit services provider reported $11.35 EPS for the quarter, beating the consensus estimate of $10.30 by $1.05. Credit Acceptance had a return on equity of 28.46% and a net margin of 18.29%.The business had revenue of $408.20 million for the quarter, compared to the consensus estimate of $582.63 million. During the same quarter in the prior year, the business earned $10.17 earnings per share. Credit Acceptance’s revenue for the quarter was up 2.5% on a year-over-year basis. As a group, research analysts expect that Credit Acceptance Corporation will post 53.24 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Wendy A. Rummler sold 5,236 shares of the business’s stock in a transaction dated Friday, January 30th. The stock was sold at an average price of $493.44, for a total value of $2,583,651.84. Following the sale, the insider directly owned 20,772 shares in the company, valued at approximately $10,249,735.68. The trade was a 20.13% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 6.60% of the company’s stock.

Hedge Funds Weigh In On Credit Acceptance

Large investors have recently modified their holdings of the company. M&T Bank Corp bought a new stake in Credit Acceptance during the 4th quarter worth approximately $208,294,000. Boston Partners purchased a new position in shares of Credit Acceptance during the 3rd quarter valued at $206,327,000. Smead Capital Management Inc. increased its holdings in shares of Credit Acceptance by 17.0% in the second quarter. Smead Capital Management Inc. now owns 216,811 shares of the credit services provider’s stock worth $110,450,000 after purchasing an additional 31,438 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH raised its position in shares of Credit Acceptance by 764.8% in the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 203,879 shares of the credit services provider’s stock worth $91,652,000 after buying an additional 180,304 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its position in shares of Credit Acceptance by 4.4% in the third quarter. Dimensional Fund Advisors LP now owns 203,861 shares of the credit services provider’s stock worth $95,171,000 after buying an additional 8,573 shares in the last quarter. 81.71% of the stock is currently owned by 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.