Credit Acceptance (NASDAQ:CACC) Lowered to Hold Rating by Zacks Research

Zacks Research cut shares of Credit Acceptance (NASDAQ:CACC) from a strong-buy rating to a hold rating in a research note published on Wednesday,Zacks.com reports.

Several other brokerages have also commented on CACC. 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 report on Friday, April 17th. TD Cowen raised their price objective on shares of Credit Acceptance from $450.00 to $500.00 and gave the stock a “hold” rating in a report on Wednesday, May 6th. Finally, Weiss Ratings upgraded shares of Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, May 8th. Four analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, Credit Acceptance presently has an average rating of “Hold” and an average target price of $520.00.

Credit Acceptance Stock Performance

Shares of CACC opened at $546.66 on Wednesday. The company has a debt-to-equity ratio of 4.09, a current ratio of 13.62 and a quick ratio of 13.62. Credit Acceptance has a one year low of $401.90 and a one year high of $565.14. The company has a 50-day simple moving average of $482.87 and a two-hundred day simple moving average of $470.55. The firm has a market capitalization of $5.72 billion, a PE ratio of 13.58 and a beta of 1.36.

Credit Acceptance (NASDAQ:CACC) last issued its quarterly earnings data 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). Credit Acceptance had a return on equity of 29.95% and a net margin of 19.49%.The company had revenue of $406.00 million during the quarter, compared to analysts’ expectations of $580.77 million. During the same quarter last year, the business earned $9.35 earnings per share. The business’s quarterly revenue was up 1.6% on a year-over-year basis. On average, analysts anticipate that Credit Acceptance will post 47.5 EPS for the current fiscal year.

Insider Buying and Selling at Credit Acceptance

In other Credit Acceptance news, major shareholder Jill Foss Watson sold 9,450 shares of the firm’s stock in a transaction that occurred 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 transaction, the insider owned 92,107 shares of the company’s stock, valued at approximately $49,601,461.64. This trade represents a 9.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Kenneth Booth sold 4,000 shares of the firm’s stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $534.00, for a total transaction of $2,136,000.00. Following the transaction, the director directly owned 22,832 shares of the company’s stock, valued at $12,192,288. This represents a 14.91% decrease in their position. 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. In the last ninety days, insiders have sold 26,527 shares of company stock valued at $14,203,265. 6.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Credit Acceptance

Institutional investors and hedge funds have recently made changes to their positions in the business. Pictet Asset Management Holding SA increased its position in shares of Credit Acceptance by 2.1% during the first quarter. Pictet Asset Management Holding SA now owns 990 shares of the credit services provider’s stock valued at $419,000 after acquiring an additional 20 shares in the last quarter. Rockefeller Capital Management L.P. increased its position in shares of Credit Acceptance by 53.3% during the fourth quarter. Rockefeller Capital Management L.P. now owns 69 shares of the credit services provider’s stock valued at $31,000 after acquiring an additional 24 shares in the last quarter. Janney Montgomery Scott LLC increased its position in shares of Credit Acceptance by 4.6% during the fourth quarter. Janney Montgomery Scott LLC now owns 571 shares of the credit services provider’s stock valued at $253,000 after acquiring an additional 25 shares in the last quarter. Cetera Investment Advisers increased its position in shares of Credit Acceptance by 6.3% during the fourth quarter. Cetera Investment Advisers now owns 508 shares of the credit services provider’s stock valued at $225,000 after acquiring an additional 30 shares in the last quarter. Finally, Russell Investments Group Ltd. increased its position in shares of Credit Acceptance by 5.3% during the third quarter. Russell Investments Group Ltd. now owns 721 shares of the credit services provider’s stock valued at $337,000 after acquiring an additional 36 shares in the last quarter. Institutional investors 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.