Geo Capital Gestora de Recursos Ltd Makes New $1.84 Million Investment in Credit Acceptance Corporation $CACC

Geo Capital Gestora de Recursos Ltd bought a new position in shares of Credit Acceptance Corporation (NASDAQ:CACC) in the fourth quarter, Holdings Channel reports. The firm bought 4,153 shares of the credit services provider’s stock, valued at approximately $1,842,000. Credit Acceptance accounts for 3.8% of Geo Capital Gestora de Recursos Ltd’s portfolio, making the stock its 16th largest position.

Other large investors have also recently added to or reduced their stakes in the company. Illinois Municipal Retirement Fund acquired a new position in shares of Credit Acceptance during the third quarter worth approximately $697,000. State of Alaska Department of Revenue acquired a new position in shares of Credit Acceptance during the fourth quarter worth approximately $462,000. M&T Bank Corp acquired a new position in shares of Credit Acceptance during the fourth quarter worth approximately $208,294,000. Envestnet Asset Management Inc. lifted its holdings in shares of Credit Acceptance by 8.0% during the third quarter. Envestnet Asset Management Inc. now owns 34,990 shares of the credit services provider’s stock worth $16,338,000 after buying an additional 2,583 shares during the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH lifted its holdings in shares of Credit Acceptance by 764.8% during 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 buying an additional 180,304 shares during the last quarter. Institutional investors own 81.71% of the company’s stock.

Insider Transactions at Credit Acceptance

In other Credit Acceptance news, COO Jonathan Lum sold 3,000 shares of the company’s stock in a transaction on Monday, April 20th. The stock was sold at an average price of $535.00, for a total value of $1,605,000.00. Following the sale, the chief operating officer directly owned 31,609 shares in the company, valued at $16,910,815. This represents a 8.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Jill Foss Watson sold 9,450 shares of the company’s stock in a transaction on Tuesday, April 21st. The shares were sold at an average price of $538.52, for a total value of $5,089,014.00. Following the completion of the sale, the insider owned 92,107 shares in the company, valued at $49,601,461.64. This trade represents a 9.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 26,527 shares of company stock valued at $14,203,265. 6.10% of the stock is owned by insiders.

Analysts Set New Price Targets

CACC has been the subject of a number of research analyst reports. Weiss Ratings upgraded Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, May 8th. Stephens upped their price target on Credit Acceptance from $450.00 to $540.00 and gave the stock an “equal weight” rating in a report on Friday, April 17th. Zacks Research lowered Credit Acceptance from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 13th. Finally, TD Cowen upped their price target on Credit Acceptance from $450.00 to $500.00 and gave the stock a “hold” rating in a report on Wednesday, May 6th. Four research analysts have rated the stock with a Hold rating, According to MarketBeat, Credit Acceptance currently has a consensus rating of “Hold” and a consensus target price of $520.00.

Credit Acceptance Stock Performance

Shares of NASDAQ CACC opened at $548.15 on Friday. The business has a fifty day simple moving average of $522.33 and a 200 day simple moving average of $486.63. The company has a current ratio of 13.62, a quick ratio of 13.62 and a debt-to-equity ratio of 4.09. The firm has a market capitalization of $5.73 billion, a price-to-earnings ratio of 13.62 and a beta of 1.38. Credit Acceptance Corporation has a one year low of $401.90 and a one year high of $579.79.

Credit Acceptance (NASDAQ:CACC) last issued 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). The firm had revenue of $406.00 million during the quarter, compared to analyst estimates of $580.77 million. Credit Acceptance had a net margin of 19.49% and a return on equity of 29.95%. The business’s revenue for the quarter was up 1.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $9.35 earnings per share. Sell-side analysts expect that Credit Acceptance Corporation will post 47.5 EPS for the current year.

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.