Credit Acceptance (NASDAQ:CACC) Shares Pass Above 200 Day Moving Average – Time to Sell?

Credit Acceptance Corporation (NASDAQ:CACC) passed above its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $476.00 and traded as high as $502.83. Credit Acceptance shares last traded at $501.53, with a volume of 310,886 shares traded.

Wall Street Analyst Weigh In

CACC has been the topic of a number of recent research reports. TD Cowen raised their target price on Credit Acceptance from $460.00 to $470.00 and gave the company a “hold” rating in a research note on Friday, January 30th. Zacks Research raised shares of Credit Acceptance from a “hold” rating to a “strong-buy” rating in a report on Tuesday, February 3rd. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Credit Acceptance in a research report on Wednesday, January 21st. One research analyst has rated the stock with a Strong Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $470.00.

Credit Acceptance Price Performance

The company has a debt-to-equity ratio of 4.10, a quick ratio of 16.91 and a current ratio of 16.91. The firm has a market capitalization of $5.37 billion, a P/E ratio of 13.69 and a beta of 1.29. The business has a fifty day moving average of $479.35 and a 200-day moving average of $476.12.

Credit Acceptance (NASDAQ:CACC) last announced its earnings results on Thursday, January 29th. The credit services provider reported $11.35 earnings per share for the quarter, beating the consensus estimate of $10.30 by $1.05. Credit Acceptance had a return on equity of 28.86% and a net margin of 18.29%.The firm had revenue of $408.20 million for the quarter, compared to the consensus estimate of $582.63 million. During the same quarter in the previous year, the business earned $10.17 EPS. The firm’s revenue for the quarter was up 2.5% on a year-over-year basis. On average, sell-side analysts forecast that Credit Acceptance Corporation will post 53.24 EPS for the current fiscal year.

Insider Activity at Credit Acceptance

In related news, CFO Jay D. Martin sold 4,340 shares of Credit Acceptance stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $512.55, for a total transaction of $2,224,467.00. Following the sale, the chief financial officer directly owned 25,963 shares in the company, valued at $13,307,335.65. The trade was a 14.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Wendy A. Rummler sold 5,236 shares of the company’s stock in a transaction dated Friday, January 30th. The stock was sold at an average price of $493.44, for a total transaction of $2,583,651.84. Following the completion of the sale, the insider directly owned 20,772 shares of the company’s stock, valued at $10,249,735.68. The trade was a 20.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 11,576 shares of company stock worth $5,824,119 over the last ninety days. 6.60% of the stock is currently owned by corporate insiders.

Institutional Trading of Credit Acceptance

Institutional investors have recently made changes to their positions in the stock. State of Wyoming acquired a new position in shares of Credit Acceptance during the fourth quarter valued at approximately $27,000. Kestra Advisory Services LLC bought a new stake in Credit Acceptance during the fourth quarter worth approximately $27,000. Allworth Financial LP lifted its position in Credit Acceptance by 141.9% in the third quarter. Allworth Financial LP now owns 104 shares of the credit services provider’s stock worth $49,000 after purchasing an additional 61 shares during the period. Vestcor Inc bought a new position in Credit Acceptance during the 3rd quarter valued at $50,000. Finally, Covestor Ltd boosted its stake in Credit Acceptance by 775.0% during the 4th quarter. Covestor Ltd now owns 175 shares of the credit services provider’s stock valued at $78,000 after purchasing an additional 155 shares in the last quarter. 81.71% of the stock is owned by institutional investors and hedge funds.

About Credit Acceptance

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.