Credit Acceptance (NASDAQ:CACC) Hits New 12-Month High – Here’s What Happened

Credit Acceptance Corporation (NASDAQ:CACC) shares hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $589.46 and last traded at $595.24, with a volume of 27071 shares traded. The stock had previously closed at $577.53.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the stock. TD Cowen increased their target price on shares of 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 research note on Friday, May 8th. Stephens upped their target price on Credit Acceptance from $450.00 to $540.00 and gave the company an “equal weight” rating in a research note on Friday, April 17th. Finally, Zacks Research downgraded Credit Acceptance from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 13th. Four investment analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $520.00.

Credit Acceptance Price Performance

The firm has a market capitalization of $6.30 billion, a P/E ratio of 14.96 and a beta of 1.38. The stock’s 50 day simple moving average is $543.21 and its 200 day simple moving average is $493.76. The company has a debt-to-equity ratio of 4.09, a quick ratio of 13.62 and a current ratio of 13.62.

Credit Acceptance (NASDAQ:CACC) last posted its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share for the quarter, missing the consensus estimate of $10.73 by ($0.02). The company had revenue of $406.00 million for the quarter, compared to the consensus estimate of $580.77 million. Credit Acceptance had a net margin of 19.49% and a return on equity of 29.95%. The business’s revenue was up 1.6% on a year-over-year basis. During the same period in the prior year, the firm posted $9.35 EPS. As a group, analysts expect that Credit Acceptance Corporation will post 47.5 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CTO Ravi Mohan Valiyaveettil sold 1,262 shares of the company’s stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $550.00, for a total transaction of $694,100.00. Following the transaction, the chief technology officer owned 25,985 shares in the company, valued at $14,291,750. This represents a 4.63% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kenneth Booth sold 4,000 shares of Credit Acceptance stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $534.00, for a total transaction of $2,136,000.00. Following the completion of the sale, the director owned 22,832 shares of the company’s stock, valued at $12,192,288. This trade represents a 14.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 26,527 shares of company stock worth $14,203,265. 6.10% of the stock is owned by company insiders.

Institutional Trading of Credit Acceptance

Large investors have recently added to or reduced their stakes in the company. Royal Bank of Canada lifted its holdings in shares of 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 purchasing an additional 460 shares during the period. AQR Capital Management LLC increased its holdings 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 worth $3,961,000 after buying an additional 5,500 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in 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 worth $12,334,000 after buying an additional 900 shares during the last quarter. Creative Planning raised its position in Credit Acceptance by 35.6% during the 2nd quarter. Creative Planning now owns 529 shares of the credit services provider’s stock worth $269,000 after buying an additional 139 shares during the last quarter. Finally, JPMorgan Chase & Co. lifted its stake in Credit Acceptance by 4.8% during the 2nd quarter. JPMorgan Chase & Co. now owns 5,077 shares of the credit services provider’s stock valued at $2,586,000 after acquiring an additional 232 shares during the period. Hedge funds and other institutional investors own 81.71% of the company’s stock.

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.