An issue of Credit Acceptance Corp. (NASDAQ:CACC) bonds fell 0.6% as a percentage of their face value during trading on Wednesday following insider selling activity. The debt issue has a 6.125% coupon and is set to mature on February 15, 2021. The debt is now trading at $100.63 and was trading at $101.25 one week ago. Price changes in a company’s bonds in credit markets sometimes predict parallel changes in its share price. Specifically, major shareholder Jill Foss Watson sold 240,000 shares of the business’s stock in a transaction on Monday, September 26th. The shares were sold at an average price of $197.50, for a total transaction of $47,400,000.00. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 25.20% of the company’s stock.
A number of equities research analysts recently issued reports on the stock. Janney Montgomery Scott upgraded shares of Credit Acceptance Corp. from a “sell” rating to a “neutral” rating and set a $173.00 price objective for the company in a report on Monday, June 20th. Zacks Investment Research upgraded shares of Credit Acceptance Corp. from a “hold” rating to a “buy” rating and set a $216.00 price objective for the company in a report on Thursday, July 14th. Credit Suisse Group AG cut shares of Credit Acceptance Corp. from a “neutral” rating to an “underperform” rating and decreased their price objective for the stock from $200.00 to $185.00 in a report on Wednesday, July 27th. Finally, Compass Point cut shares of Credit Acceptance Corp. from a “neutral” rating to a “sell” rating and set a $170.00 price objective for the company. in a report on Tuesday, September 6th. Six research analysts have rated the stock with a sell rating, two have given a hold rating and one has issued a strong buy rating to the company. Credit Acceptance Corp. presently has a consensus rating of “Hold” and an average price target of $179.15.
The stock’s 50 day moving average price is $199.04 and its 200-day moving average price is $188.92. The stock has a market capitalization of $3.98 billion, a P/E ratio of 12.91 and a beta of 0.67.
Credit Acceptance Corp. (NASDAQ:CACC) last issued its quarterly earnings data on Friday, July 29th. The company reported $4.38 EPS for the quarter, topping analysts’ consensus estimates of $3.86 by $0.52. Credit Acceptance Corp. had a net margin of 35.03% and a return on equity of 33.91%. The business had revenue of $238.50 million for the quarter, compared to analyst estimates of $232.40 million. During the same period last year, the business posted $3.60 earnings per share. The firm’s quarterly revenue was up 17.4% on a year-over-year basis. On average, equities analysts predict that Credit Acceptance Corp. will post $16.02 EPS for the current fiscal year.
Several large investors have recently modified their holdings of the company. Norges Bank bought a new stake in shares of Credit Acceptance Corp. during the fourth quarter worth approximately $14,059,000. Aperio Group LLC raised its stake in shares of Credit Acceptance Corp. by 46.2% in the first quarter. Aperio Group LLC now owns 2,308 shares of the company’s stock worth $419,000 after buying an additional 729 shares during the last quarter. Teachers Advisors Inc. raised its stake in shares of Credit Acceptance Corp. by 30.9% in the first quarter. Teachers Advisors Inc. now owns 12,270 shares of the company’s stock worth $2,228,000 after buying an additional 2,898 shares during the last quarter. BlackRock Inc. raised its stake in shares of Credit Acceptance Corp. by 310.5% in the first quarter. BlackRock Inc. now owns 1,014 shares of the company’s stock worth $184,000 after buying an additional 767 shares during the last quarter. Finally, BlackRock Group LTD raised its stake in shares of Credit Acceptance Corp. by 22.5% in the first quarter. BlackRock Group LTD now owns 4,640 shares of the company’s stock worth $841,000 after buying an additional 851 shares during the last quarter. Institutional investors and hedge funds own 47.43% of the company’s stock.
About Credit Acceptance Corp.
Credit Acceptance Corporation (Credit Acceptance) is a provider of financing programs to automobile dealers that enable them to sell vehicles to consumers. The Company’s financing programs are offered through a nationwide network of automobile dealers; from repeat and referral sales generated by customers, and from sales to customers responding to advertisements for it products.
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