Credit Acceptance (NASDAQ:CACC) CFO Jay Martin Sells 3,000 Shares

Credit Acceptance Corporation (NASDAQ:CACC) CFO Jay Martin sold 3,000 shares of Credit Acceptance stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $601.04, for a total value of $1,803,120.00. Following the sale, the chief financial officer directly owned 25,963 shares of the company’s stock, valued at $15,604,801.52. This represents a 10.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Credit Acceptance Stock Performance

Credit Acceptance stock traded up $5.92 during midday trading on Friday, hitting $629.62. The company’s stock had a trading volume of 204,962 shares, compared to its average volume of 192,517. The company has a debt-to-equity ratio of 4.09, a current ratio of 13.62 and a quick ratio of 13.62. The company has a market cap of $6.59 billion, a price-to-earnings ratio of 15.65 and a beta of 1.38. Credit Acceptance Corporation has a 1-year low of $401.90 and a 1-year high of $638.55. The company has a 50-day moving average price of $545.89 and a two-hundred day moving average price of $494.88.

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

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Empowered Funds LLC bought a new position in Credit Acceptance in the first quarter valued at about $278,000. Parallel Advisors LLC lifted its holdings in shares of Credit Acceptance by 590.0% during the first quarter. Parallel Advisors LLC now owns 69 shares of the credit services provider’s stock worth $29,000 after purchasing an additional 59 shares during the period. Bank of America Corp DE grew its stake in shares of Credit Acceptance by 47.9% in the first quarter. Bank of America Corp DE now owns 44,586 shares of the credit services provider’s stock worth $18,880,000 after purchasing an additional 14,439 shares during the last quarter. Altshuler Shaham Ltd increased its holdings in Credit Acceptance by 37.3% in the first quarter. Altshuler Shaham Ltd now owns 70 shares of the credit services provider’s stock valued at $30,000 after purchasing an additional 19 shares during the period. Finally, California State Teachers Retirement System raised its position in Credit Acceptance by 19.9% during the 1st quarter. California State Teachers Retirement System now owns 6,308 shares of the credit services provider’s stock worth $2,671,000 after purchasing an additional 1,046 shares during the last quarter. 81.71% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several brokerages have weighed in on CACC. Stephens lifted their price objective on Credit Acceptance from $450.00 to $540.00 and gave the company an “equal weight” rating in a report on Friday, April 17th. TD Cowen upped their price objective on shares of Credit Acceptance from $450.00 to $500.00 and gave the stock a “hold” rating in a research report on Wednesday, May 6th. Zacks Research downgraded shares of Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 13th. Finally, Weiss Ratings upgraded shares of Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, May 8th. Four research analysts have rated the stock with a Hold rating, According to MarketBeat, Credit Acceptance presently has a consensus rating of “Hold” and an average target price of $520.00.

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.