Credit Acceptance (NASDAQ:CACC) Rating Lowered to “Hold” at Zacks Research

Credit Acceptance (NASDAQ:CACC) was downgraded by stock analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Wednesday,Zacks.com reports.

A number of other equities analysts have also weighed in on the company. TD Cowen upped their target price on Credit Acceptance from $450.00 to $500.00 and gave the stock a “hold” rating in a research report on Wednesday, May 6th. Weiss Ratings raised Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, May 8th. Finally, Stephens upped their target price on 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 analysts have rated the stock with a Hold rating, According to MarketBeat, Credit Acceptance currently has an average rating of “Hold” and a consensus target price of $520.00.

Credit Acceptance Price Performance

Credit Acceptance stock opened at $546.66 on Wednesday. The stock has a market capitalization of $5.72 billion, a price-to-earnings ratio of 13.58 and a beta of 1.36. Credit Acceptance has a 52-week low of $401.90 and a 52-week high of $565.14. The stock’s 50 day moving average price is $482.87 and its two-hundred day moving average price is $470.55. The company has a debt-to-equity ratio of 4.09, a quick ratio of 13.62 and a current ratio of 13.62.

Credit Acceptance (NASDAQ:CACC) last posted its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $10.73 by ($0.02). The business had revenue of $406.00 million for the quarter, compared to the consensus estimate of $580.77 million. Credit Acceptance had a return on equity of 29.95% and a net margin of 19.49%.Credit Acceptance’s quarterly revenue was up 1.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $9.35 earnings per share. On average, equities analysts predict that Credit Acceptance will post 47.5 earnings per share for the current year.

Insider Activity at Credit Acceptance

In other news, CFO Jay D. Martin sold 3,000 shares of the company’s stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $525.63, for a total transaction of $1,576,890.00. Following the transaction, the chief financial officer directly owned 25,963 shares of the company’s stock, valued at $13,646,931.69. This represents a 10.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Wendy A. Rummler sold 4,062 shares of the stock in a transaction on Friday, April 17th. The shares were sold at an average price of $525.67, for a total value of $2,135,271.54. Following the completion of the sale, the insider directly owned 19,547 shares of the company’s stock, valued at $10,275,271.49. The trade was a 17.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 26,527 shares of company stock valued at $14,203,265 over the last three months. 6.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Credit Acceptance

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. State of Wyoming bought a new position in Credit Acceptance in the 4th quarter valued at $27,000. Kestra Advisory Services LLC bought a new position in Credit Acceptance in the 4th quarter valued at $27,000. Parallel Advisors LLC grew its stake in Credit Acceptance by 590.0% in the 1st quarter. Parallel Advisors LLC now owns 69 shares of the credit services provider’s stock valued at $29,000 after purchasing an additional 59 shares during the period. Rockefeller Capital Management L.P. grew its stake in Credit Acceptance by 53.3% in the 4th quarter. Rockefeller Capital Management L.P. now owns 69 shares of the credit services provider’s stock valued at $31,000 after purchasing an additional 24 shares during the period. Finally, Allworth Financial LP grew its stake in Credit Acceptance by 141.9% in the 3rd quarter. Allworth Financial LP now owns 104 shares of the credit services provider’s stock valued at $49,000 after purchasing an additional 61 shares during the period. 81.71% of the stock is owned by hedge funds and other institutional investors.

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.