Corsair Capital Management L.P. Invests $508,000 in Credit Acceptance Corporation $CACC

Corsair Capital Management L.P. purchased a new stake in Credit Acceptance Corporation (NASDAQ:CACC) in the 1st quarter, according to its most recent disclosure with the SEC. The fund purchased 1,200 shares of the credit services provider’s stock, valued at approximately $508,000.

Other institutional investors have also modified their holdings of the company. State of Wyoming acquired a new position in Credit Acceptance in the fourth quarter valued at approximately $27,000. Kestra Advisory Services LLC bought a new position in shares of Credit Acceptance during the fourth quarter valued at approximately $27,000. Parallel Advisors LLC raised its position in shares of 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 purchasing an additional 59 shares during the period. Rockefeller Capital Management L.P. raised its position in shares of 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 purchasing an additional 24 shares during the period. Finally, Allworth Financial LP lifted its holdings in shares of Credit Acceptance by 141.9% in the 3rd quarter. Allworth Financial LP now owns 104 shares of the credit services provider’s stock worth $49,000 after purchasing an additional 61 shares during the last quarter. Institutional investors own 81.71% of the company’s stock.

Insider Buying and Selling at Credit Acceptance

In related news, major shareholder Jill Foss Watson sold 11,000 shares of the firm’s stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $653.24, for a total transaction of $7,185,640.00. Following the transaction, the insider owned 49,346 shares in the company, valued at $32,234,781.04. This trade represents a 18.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Erin J. Kerber sold 8,656 shares of the company’s stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $600.94, for a total value of $5,201,736.64. Following the completion of the sale, the insider owned 25,711 shares of the company’s stock, valued at $15,450,768.34. This trade represents a 25.19% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 47,304 shares of company stock valued at $29,186,331. 6.10% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on CACC. Weiss Ratings upgraded Credit Acceptance from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, July 16th. Stephens raised their target price on Credit Acceptance from $450.00 to $540.00 and gave the company an “equal weight” rating in a research note on Friday, April 17th. Zacks Research downgraded shares of 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 shares of Credit Acceptance from $500.00 to $575.00 and gave the stock a “hold” rating in a research report on Tuesday, July 7th. One investment analyst has rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $557.50.

Credit Acceptance Stock Performance

Shares of CACC opened at $574.08 on Monday. The firm has a 50-day moving average price of $590.61 and a 200 day moving average price of $519.94. The firm has a market capitalization of $6.00 billion, a PE ratio of 14.27 and a beta of 1.36. The company has a quick ratio of 13.62, a current ratio of 13.62 and a debt-to-equity ratio of 4.09. Credit Acceptance Corporation has a 52-week low of $401.90 and a 52-week high of $668.86.

Credit Acceptance (NASDAQ:CACC) last released 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 company had revenue of $406.00 million for 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 firm’s quarterly revenue was up 1.6% on a year-over-year basis. During the same period in the previous year, the business posted $9.35 EPS. On average, sell-side analysts anticipate that Credit Acceptance Corporation will post 47.5 earnings per share for the current fiscal 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.