Insider Selling: Credit Acceptance (NASDAQ:CACC) COO Sells $3,600,000.00 in Stock

Credit Acceptance Corporation (NASDAQ:CACC) COO Jonathan Lum sold 6,000 shares of Credit Acceptance stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $600.00, for a total transaction of $3,600,000.00. Following the transaction, the chief operating officer directly owned 31,609 shares in the company, valued at approximately $18,965,400. This trade represents a 15.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Jonathan Lum also recently made the following trade(s):

• On Monday, April 20th, Jonathan Lum sold 3,000 shares of Credit Acceptance stock. The shares were sold at an average price of $535.00, for a total transaction of $1,605,000.00.

Credit Acceptance Stock Up 0.9%

NASDAQ:CACC traded up $5.92 during mid-day trading on Friday, hitting $629.62. The company had a trading volume of 204,962 shares, compared to its average volume of 192,517. Credit Acceptance Corporation has a 1 year low of $401.90 and a 1 year high of $638.55. The business has a fifty day simple moving average of $545.89 and a 200-day simple moving average of $494.88. The company has a current ratio of 13.62, a quick ratio of 13.62 and a debt-to-equity ratio of 4.09. The firm has a market capitalization of $6.59 billion, a price-to-earnings ratio of 15.65 and a beta of 1.38.

Credit Acceptance (NASDAQ:CACC) last issued its quarterly earnings data on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share (EPS) for the quarter, missing the consensus estimate of $10.73 by ($0.02). The firm had revenue of $406.00 million during the quarter, compared to analyst estimates of $580.77 million. Credit Acceptance had a net margin of 19.49% and a return on equity of 29.95%. The firm’s revenue was up 1.6% compared to the same quarter last year. During the same period last year, the business earned $9.35 EPS. Equities analysts forecast that Credit Acceptance Corporation will post 47.5 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Credit Acceptance

A number of hedge funds have recently modified their holdings of the stock. State of Wyoming purchased a new position in Credit Acceptance in the 4th quarter worth about $27,000. Kestra Advisory Services LLC acquired a new stake in shares of Credit Acceptance during the fourth quarter valued at approximately $27,000. Parallel Advisors LLC raised 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 valued at $29,000 after acquiring an additional 59 shares during the period. Altshuler Shaham Ltd lifted its position in shares of Credit Acceptance by 37.3% in the 1st quarter. Altshuler Shaham Ltd now owns 70 shares of the credit services provider’s stock valued at $30,000 after acquiring an additional 19 shares in the last quarter. Finally, Rockefeller Capital Management L.P. boosted its stake in Credit Acceptance by 53.3% in the 4th quarter. Rockefeller Capital Management L.P. now owns 69 shares of the credit services provider’s stock worth $31,000 after purchasing an additional 24 shares during the period. 81.71% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

CACC has been the subject of several research analyst reports. Zacks Research lowered Credit Acceptance from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 13th. Weiss Ratings upgraded Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, May 8th. TD Cowen upped their price target 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. Finally, Stephens lifted their price target on Credit Acceptance from $450.00 to $540.00 and gave the company an “equal weight” rating in a report on Friday, April 17th. Four research analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock 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.