Jay Martin Sells 3,000 Shares of Credit Acceptance (NASDAQ:CACC) Stock

Credit Acceptance Corporation (NASDAQ:CACC) CFO Jay Martin sold 3,000 shares of the business’s stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $525.63, for a total value of $1,576,890.00. Following the completion of the transaction, the chief financial officer directly owned 25,963 shares of the company’s stock, valued at $13,646,931.69. The trade was a 10.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Credit Acceptance Trading Up 1.1%

Shares of NASDAQ:CACC opened at $526.76 on Thursday. Credit Acceptance Corporation has a 12-month low of $401.90 and a 12-month high of $549.75. The company has a market capitalization of $5.66 billion, a PE ratio of 14.43 and a beta of 1.32. The business has a 50 day moving average of $473.33 and a two-hundred day moving average of $468.05. The company has a current ratio of 16.91, a quick ratio of 16.91 and a debt-to-equity ratio of 4.10.

Credit Acceptance (NASDAQ:CACC) last announced its quarterly earnings results on Thursday, January 29th. The credit services provider reported $11.35 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $10.30 by $1.05. Credit Acceptance had a return on equity of 28.86% and a net margin of 18.29%.The company had revenue of $408.20 million during the quarter, compared to the consensus estimate of $582.63 million. During the same period in the previous year, the company posted $10.17 earnings per share. Credit Acceptance’s revenue for the quarter was up 2.5% on a year-over-year basis. As a group, analysts forecast that Credit Acceptance Corporation will post 47 EPS for the current year.

Key Headlines Impacting Credit Acceptance

Here are the key news stories impacting Credit Acceptance this week:

• Positive Sentiment: Analyst support and coverage improvements — Stephens raised its price target to $540 and Zacks upgraded the stock to Strong Buy, supporting near-term investor confidence. MarketBeat CACC Coverage
• Positive Sentiment: Institutional buying and large stakes — multiple funds (M&T Bank new position, Boston Partners, Dimensional, Smead, Universal Beteiligungs) have recently increased or established sizable positions, which is supportive of demand for the shares. MarketBeat CACC Coverage
• Neutral Sentiment: Mixed fundamentals — Credit Acceptance beat EPS expectations in the most recent quarter but missed consensus revenue, leaving fundamentals mixed and making sentiment more driven by flows and insider/institutional activity than near-term top-line momentum. Quarterly Results Summary
• Neutral Sentiment: Several insider sales were executed under pre-arranged Rule 10b5-1 plans (CFO Jay Martin, COO Jonathan Lum, Director Kenneth Booth), which reduces but does not eliminate the negative signal that raw insider selling can create. See one of the Form 4 filings. Lum Form 4
• Negative Sentiment: Large insider selling by major holders — Jill Foss Watson (major shareholder) sold 9,450 shares (~$5.09M) and other executives/directors sold multi?thousand share blocks in recent days; aggregated insider selling is a near?term headwind for sentiment. Watson Sale
• Negative Sentiment: Media highlights executives “cashing in” — coverage calling out multiple insider sales can amplify investor concern even when some trades are planned. TipRanks Article

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in CACC. M&T Bank Corp acquired a new position in shares of Credit Acceptance during the 4th quarter worth approximately $208,294,000. Boston Partners purchased a new stake in shares of Credit Acceptance during the third quarter worth approximately $206,327,000. Universal Beteiligungs und Servicegesellschaft mbH increased its position 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 purchasing an additional 180,304 shares in the last quarter. Smith Thomas W purchased a new stake in shares of Credit Acceptance during the fourth quarter worth approximately $42,083,000. Finally, Smead Capital Management Inc. increased its position in shares of Credit Acceptance by 17.0% during the second quarter. Smead Capital Management Inc. now owns 216,811 shares of the credit services provider’s stock worth $110,450,000 after purchasing an additional 31,438 shares in the last quarter. 81.71% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the company. Zacks Research raised Credit Acceptance from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, February 3rd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Credit Acceptance in a research note on Monday. TD Cowen upped their target price on Credit Acceptance from $460.00 to $470.00 and gave the stock a “hold” rating in a research note on Friday, January 30th. 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 note on Friday, April 17th. One equities research analyst has rated the stock with a Strong Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $505.00.

Credit Acceptance Company Profile

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.