Credit Acceptance (NASDAQ:CACC) Stock Price Expected to Rise, TD Cowen Analyst Says

Credit Acceptance (NASDAQ:CACC) had its price target raised by investment analysts at TD Cowen from $500.00 to $575.00 in a report issued on Tuesday,Benzinga reports. The brokerage currently has a “hold” rating on the credit services provider’s stock. TD Cowen’s price objective points to a potential downside of 12.62% from the stock’s current price.

Several other brokerages also recently commented on CACC. Stephens upped their target price on Credit Acceptance from $450.00 to $540.00 and gave the company an “equal weight” rating in a report on Friday, April 17th. Weiss Ratings raised Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, May 8th. Finally, Zacks Research lowered shares of Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 13th. Four analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $557.50.

Credit Acceptance Price Performance

NASDAQ:CACC traded up $0.84 during trading hours on Tuesday, reaching $658.04. 22,500 shares of the company’s stock were exchanged, compared to its average volume of 189,355. The company has a quick ratio of 13.62, a current ratio of 13.62 and a debt-to-equity ratio of 4.09. The company has a market capitalization of $6.88 billion, a P/E ratio of 16.39 and a beta of 1.36. Credit Acceptance has a 12 month low of $401.90 and a 12 month high of $668.86. The business’s 50-day simple moving average is $563.96 and its two-hundred day simple moving average is $503.80.

Credit Acceptance (NASDAQ:CACC) last posted its quarterly earnings results 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). Credit Acceptance had a net margin of 19.49% and a return on equity of 29.95%. The company had revenue of $406.00 million during the quarter, compared to the consensus estimate of $580.77 million. During the same period in the prior year, the company posted $9.35 EPS. Credit Acceptance’s quarterly revenue was up 1.6% on a year-over-year basis. Sell-side analysts expect that Credit Acceptance will post 47.5 EPS for the current fiscal year.

Insider Activity at Credit Acceptance

In other Credit Acceptance news, CTO Ravi Mohan Valiyaveettil sold 1,262 shares of the business’s stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $550.00, for a total transaction of $694,100.00. Following the sale, the chief technology officer directly owned 25,985 shares of the company’s stock, valued at $14,291,750. The trade was a 4.63% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jay D. Martin sold 3,000 shares of the stock in a transaction on Wednesday, June 24th. The shares were sold at an average price of $601.04, for a total value of $1,803,120.00. Following the completion of the sale, the chief financial officer owned 25,963 shares of the company’s stock, valued at $15,604,801.52. The trade was a 10.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 59,816 shares of company stock worth $34,542,867. Insiders own 6.10% of the company’s stock.

Institutional Investors Weigh In On Credit Acceptance

Institutional investors have recently bought and sold shares of the business. Royal Bank of Canada increased its holdings in shares of Credit Acceptance by 31.6% in the 1st quarter. Royal Bank of Canada now owns 1,916 shares of the credit services provider’s stock valued at $989,000 after purchasing an additional 460 shares during the period. AQR Capital Management LLC lifted its position in shares of Credit Acceptance by 230.6% in the first quarter. AQR Capital Management LLC now owns 7,885 shares of the credit services provider’s stock worth $3,961,000 after purchasing an additional 5,500 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Credit Acceptance by 3.9% during the first 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 purchasing an additional 900 shares during the period. Creative Planning boosted its holdings in shares of Credit Acceptance by 35.6% during the second quarter. Creative Planning now owns 529 shares of the credit services provider’s stock worth $269,000 after purchasing an additional 139 shares during the period. Finally, JPMorgan Chase & Co. grew its position in Credit Acceptance by 4.8% during the second quarter. JPMorgan Chase & Co. now owns 5,077 shares of the credit services provider’s stock valued at $2,586,000 after purchasing an additional 232 shares in the last quarter. 81.71% of the stock is currently owned by institutional investors and hedge funds.

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.