Credit Acceptance (NASDAQ:CACC) Reaches New 1-Year High – What’s Next?

Credit Acceptance Corporation (NASDAQ:CACC)’s share price hit a new 52-week high on Tuesday . The company traded as high as $583.86 and last traded at $577.4730, with a volume of 13487 shares traded. The stock had previously closed at $572.79.

Analyst Ratings Changes

A number of analysts have weighed in on CACC shares. TD Cowen increased 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. Weiss Ratings upgraded Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, May 8th. Zacks Research downgraded Credit Acceptance from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 13th. Finally, Stephens raised their price objective 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. Four investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $520.00.

Credit Acceptance Stock Performance

The company has a debt-to-equity ratio of 4.09, a quick ratio of 13.62 and a current ratio of 13.62. The company has a 50 day moving average price of $531.05 and a 200 day moving average price of $489.50. The company has a market capitalization of $5.89 billion, a price-to-earnings ratio of 14.00 and a beta of 1.38.

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 the consensus estimate 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 quarterly revenue was up 1.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $9.35 earnings per share. Equities research analysts predict that Credit Acceptance Corporation will post 47.5 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CTO Ravi Mohan Valiyaveettil sold 1,262 shares of Credit Acceptance stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $550.00, for a total value of $694,100.00. Following the completion of the sale, the chief technology officer owned 25,985 shares of the company’s stock, valued at approximately $14,291,750. This trade represents a 4.63% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Jill Foss Watson sold 9,450 shares of Credit Acceptance stock in a transaction on Tuesday, April 21st. The shares were sold at an average price of $538.52, for a total transaction of $5,089,014.00. Following the completion of the sale, the insider directly owned 92,107 shares of the company’s stock, valued at approximately $49,601,461.64. The trade was a 9.31% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 26,527 shares of company stock worth $14,203,265 in the last quarter. Insiders own 6.10% of the company’s stock.

Institutional Trading of Credit Acceptance

Hedge funds have recently bought and sold shares of the business. Royal Bank of Canada boosted its stake in Credit Acceptance by 31.6% during the 1st quarter. Royal Bank of Canada now owns 1,916 shares of the credit services provider’s stock valued at $989,000 after purchasing an additional 460 shares during the last quarter. AQR Capital Management LLC boosted its stake in Credit Acceptance by 230.6% during the 1st quarter. AQR Capital Management LLC now owns 7,885 shares of the credit services provider’s stock valued at $3,961,000 after purchasing an additional 5,500 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Credit Acceptance by 3.9% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 23,886 shares of the credit services provider’s stock valued at $12,334,000 after purchasing an additional 900 shares during the last quarter. Creative Planning boosted its stake in Credit Acceptance by 35.6% during the 2nd quarter. Creative Planning now owns 529 shares of the credit services provider’s stock valued at $269,000 after purchasing an additional 139 shares during the last quarter. Finally, JPMorgan Chase & Co. boosted its stake in Credit Acceptance by 4.8% during the 2nd quarter. JPMorgan Chase & Co. now owns 5,077 shares of the credit services provider’s stock valued at $2,586,000 after purchasing an additional 232 shares during the last quarter. Institutional investors and hedge funds own 81.71% of the company’s stock.

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.