Insider Selling: Credit Acceptance (NASDAQ:CACC) CTO Sells $694,100.00 in Stock

Credit Acceptance Corporation (NASDAQ:CACC) CTO Ravi Mohan Valiyaveettil sold 1,262 shares of the firm’s stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $550.00, for a total value of $694,100.00. Following the transaction, the chief technology officer owned 25,985 shares in the company, valued at $14,291,750. This trade represents a 4.63% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Credit Acceptance Stock Performance

Credit Acceptance stock opened at $533.15 on Monday. The company has a debt-to-equity ratio of 4.09, a current ratio of 13.62 and a quick ratio of 13.62. Credit Acceptance Corporation has a 12 month low of $401.90 and a 12 month high of $565.14. The company has a fifty day moving average price of $478.16 and a two-hundred day moving average price of $469.49. The company has a market cap of $5.58 billion, a PE ratio of 13.25 and a beta of 1.36.

Credit Acceptance (NASDAQ:CACC) last issued its earnings results on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share 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 period last year, the company posted $9.35 earnings per share. The firm’s revenue for the quarter was up 1.6% on a year-over-year basis. Research analysts expect that Credit Acceptance Corporation will post 47.5 earnings per share for the current year.

Institutional Trading of Credit Acceptance

A number of large investors have recently modified their holdings of the company. Pictet Asset Management Holding SA increased its holdings in shares of Credit Acceptance by 2.1% in the 1st quarter. Pictet Asset Management Holding SA now owns 990 shares of the credit services provider’s stock worth $419,000 after acquiring an additional 20 shares during the period. Global Retirement Partners LLC increased its holdings in shares of Credit Acceptance by 2.7% in the 3rd quarter. Global Retirement Partners LLC now owns 882 shares of the credit services provider’s stock worth $412,000 after acquiring an additional 23 shares during the period. Rockefeller Capital Management L.P. increased its holdings in shares of 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 acquiring an additional 24 shares during the period. Janney Montgomery Scott LLC increased its holdings in shares of Credit Acceptance by 4.6% in the 4th quarter. Janney Montgomery Scott LLC now owns 571 shares of the credit services provider’s stock worth $253,000 after acquiring an additional 25 shares during the period. Finally, Cetera Investment Advisers increased its holdings in shares of Credit Acceptance by 6.3% in the 4th quarter. Cetera Investment Advisers now owns 508 shares of the credit services provider’s stock worth $225,000 after acquiring an additional 30 shares during the period. Institutional investors and hedge funds own 81.71% of the company’s stock.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on CACC shares. Zacks Research upgraded shares of Credit Acceptance from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, February 3rd. Weiss Ratings upgraded shares of Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday. TD Cowen raised 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. Finally, Stephens raised their price target on shares of Credit Acceptance from $450.00 to $540.00 and gave the stock an “equal weight” rating in a research report on Friday, April 17th. One investment analyst has rated the stock with a Strong Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $520.00.

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.