Credit Acceptance (NASDAQ:CACC) Share Price Crosses Above Two Hundred Day Moving Average – Time to Sell?

Credit Acceptance Corporation (NASDAQ:CACC) shares crossed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $473.87 and traded as high as $552.69. Credit Acceptance shares last traded at $544.80, with a volume of 66,560 shares traded.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the stock. Zacks Research downgraded shares of Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 13th. TD Cowen upped 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, May 6th. Stephens raised their price objective on 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 upgraded Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, May 8th. Four analysts have rated the stock with a Hold rating, According to data from MarketBeat, Credit Acceptance has a consensus rating of “Hold” and a consensus price target of $520.00.

Credit Acceptance Price Performance

The company has a market cap of $5.70 billion, a price-to-earnings ratio of 13.54 and a beta of 1.36. The company’s 50-day simple moving average is $488.91 and its 200-day simple moving average is $473.87. 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 (NASDAQ:CACC) last posted its earnings results on Tuesday, May 5th. The credit services provider reported $10.71 EPS 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 firm had revenue of $406.00 million for the quarter, compared to analyst estimates of $580.77 million. During the same period in the previous year, the firm posted $9.35 earnings per share. The company’s revenue for the quarter was up 1.6% on a year-over-year basis. On average, equities research analysts anticipate that Credit Acceptance Corporation will post 47.5 EPS for the current year.

Insider Buying and Selling

In other news, insider Wendy A. Rummler sold 4,062 shares of the stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $525.67, for a total transaction of $2,135,271.54. Following the completion of the transaction, the insider directly owned 19,547 shares in the company, valued at approximately $10,275,271.49. This represents a 17.21% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed 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 company’s stock in a transaction on Friday, April 17th. The shares were sold at an average price of $525.63, for a total transaction of $1,576,890.00. Following the completion of the sale, the chief financial officer directly owned 25,963 shares in the company, valued at $13,646,931.69. This represents a 10.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 26,527 shares of company stock worth $14,203,265 over the last quarter. Company insiders own 6.10% of the company’s stock.

Hedge Funds Weigh In On Credit Acceptance

Several large investors have recently added to or reduced their stakes in the company. M&T Bank Corp acquired a new stake in shares of Credit Acceptance during the fourth quarter worth $208,294,000. Boston Partners grew its position in shares of Credit Acceptance by 3.4% during the 4th quarter. Boston Partners now owns 456,253 shares of the credit services provider’s stock valued at $202,373,000 after buying an additional 14,877 shares during the last quarter. Dimensional Fund Advisors LP grew its position in shares of Credit Acceptance by 3.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 230,715 shares of the credit services provider’s stock valued at $97,701,000 after buying an additional 6,843 shares during the last quarter. Smead Capital Management Inc. raised its stake in Credit Acceptance by 17.0% during the second quarter. Smead Capital Management Inc. now owns 216,811 shares of the credit services provider’s stock worth $110,450,000 after acquiring an additional 31,438 shares during the period. Finally, Universal Beteiligungs und Servicegesellschaft mbH lifted its holdings in Credit Acceptance by 764.8% in the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 203,879 shares of the credit services provider’s stock worth $91,652,000 after acquiring an additional 180,304 shares during the last quarter. 81.71% of the stock is currently owned by institutional investors.

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.