Insider Selling: Credit Acceptance (NASDAQ:CACC) Insider Sells $966,989.86 in Stock

Credit Acceptance Corporation (NASDAQ:CACC) insider Erin Kerber sold 1,753 shares of the business’s stock in a transaction that occurred on Wednesday, May 6th. The shares were sold at an average price of $551.62, for a total transaction of $966,989.86. Following the completion of the sale, the insider directly owned 25,711 shares in the company, valued at $14,182,701.82. This trade represents a 6.38% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Credit Acceptance Price Performance

Credit Acceptance stock opened at $533.15 on Monday. The company’s 50 day simple moving average is $478.16 and its 200-day simple moving average is $469.49. The company has a market capitalization of $5.58 billion, a price-to-earnings ratio of 13.25 and a beta of 1.36. Credit Acceptance Corporation has a 1 year low of $401.90 and a 1 year high of $565.14. The company has a debt-to-equity ratio of 4.09, a quick ratio of 13.62 and a current ratio of 13.62.

Credit Acceptance (NASDAQ:CACC) last released its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $10.73 by ($0.02). The company had revenue of $406.00 million during the quarter, compared to analysts’ expectations of $580.77 million. Credit Acceptance had a net margin of 19.49% and a return on equity of 29.95%. Credit Acceptance’s revenue was up 1.6% on a year-over-year basis. During the same period last year, the firm posted $9.35 earnings per share. As a group, equities research analysts expect that Credit Acceptance Corporation will post 47.5 earnings per share for the current year.

Hedge Funds Weigh In On Credit Acceptance

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. State of Wyoming purchased a new position in Credit Acceptance in the 4th quarter valued at approximately $27,000. Kestra Advisory Services LLC acquired a new position in Credit Acceptance during the 4th quarter worth approximately $27,000. Rockefeller Capital Management L.P. grew its holdings in Credit Acceptance by 53.3% during 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 in the last quarter. Parallel Advisors LLC grew its holdings in Credit Acceptance by 590.0% during the 1st quarter. Parallel Advisors LLC now owns 69 shares of the credit services provider’s stock worth $29,000 after acquiring an additional 59 shares in the last quarter. Finally, Allworth Financial LP grew its holdings in Credit Acceptance by 141.9% during the 3rd quarter. Allworth Financial LP now owns 104 shares of the credit services provider’s stock worth $49,000 after acquiring an additional 61 shares in the last quarter. Hedge funds and other institutional investors own 81.71% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on CACC shares. TD Cowen upped their target price on shares of Credit Acceptance from $450.00 to $500.00 and gave the stock a “hold” rating in a research note on Wednesday. Zacks Research raised shares of Credit Acceptance from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, February 3rd. Stephens raised their price target on shares of Credit Acceptance from $450.00 to $540.00 and gave the company an “equal weight” rating in a research report on Friday, April 17th. Finally, Weiss Ratings raised shares of Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday. One analyst has rated the stock with a Strong Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average 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.