Credit Acceptance (NASDAQ:CACC) Announces Quarterly Earnings Results

Credit Acceptance (NASDAQ:CACC) announced its earnings results on Thursday. The credit services provider reported $11.35 EPS for the quarter, beating analysts’ consensus estimates of $10.30 by $1.05, FiscalAI reports. The business had revenue of $408.20 million during the quarter, compared to analysts’ expectations of $582.63 million. Credit Acceptance had a return on equity of 27.88% and a net margin of 19.70%.

Credit Acceptance Trading Up 4.1%

Credit Acceptance stock traded up $17.81 during midday trading on Thursday, hitting $451.24. 240,854 shares of the stock were exchanged, compared to its average volume of 154,308. 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’s 50-day simple moving average is $456.98 and its 200 day simple moving average is $475.12. Credit Acceptance has a fifty-two week low of $401.90 and a fifty-two week high of $560.00. The stock has a market capitalization of $4.98 billion, a price-to-earnings ratio of 11.95 and a beta of 1.24.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the company. Weiss Ratings restated a “hold (c)” rating on shares of Credit Acceptance in a report on Wednesday, January 21st. TD Cowen upgraded shares of Credit Acceptance from a “sell” rating to a “hold” rating in a research report on Thursday, January 8th. Three equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, Credit Acceptance currently has an average rating of “Hold” and a consensus price target of $480.00.

Institutional Trading of Credit Acceptance

Several institutional investors have recently made changes to their positions in CACC. Vestcor Inc purchased a new position in Credit Acceptance in the third quarter worth approximately $50,000. Raymond James Financial Inc. acquired a new position in shares of Credit Acceptance in the 2nd quarter valued at $150,000. Prudential Financial Inc. acquired a new position in shares of Credit Acceptance in the 2nd quarter valued at $215,000. Creative Planning grew its holdings in shares of Credit Acceptance by 8.1% during the 3rd quarter. Creative Planning now owns 572 shares of the credit services provider’s stock worth $267,000 after purchasing an additional 43 shares during the period. Finally, Mackenzie Financial Corp increased its position in shares of Credit Acceptance by 14.1% during the 3rd quarter. Mackenzie Financial Corp now owns 721 shares of the credit services provider’s stock worth $337,000 after purchasing an additional 89 shares during the last quarter. 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.