Credit Acceptance (NASDAQ:CACC) Stock Crosses Above 200-Day Moving Average – Here’s What Happened

Credit Acceptance Corporation (NASDAQ:CACC)’s stock price passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $510.94 and traded as high as $631.44. Credit Acceptance shares last traded at $617.78, with a volume of 134,322 shares trading hands.

Wall Street Analyst Weigh In

CACC has been the topic of several recent analyst reports. Zacks Research downgraded shares of Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 13th. Stephens raised 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. TD Cowen raised their target price on Credit Acceptance from $500.00 to $575.00 and gave the stock a “hold” rating in a research report on Tuesday, July 7th. Finally, Weiss Ratings upgraded Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, May 8th. Four investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat, Credit Acceptance has an average rating of “Hold” and a consensus price target of $557.50.

Credit Acceptance Stock Up 3.5%

The business’s 50 day simple moving average is $579.39 and its 200-day simple moving average is $512.05. The company has a debt-to-equity ratio of 4.09, a quick ratio of 13.62 and a current ratio of 13.62. The company has a market cap of $6.67 billion, a price-to-earnings ratio of 15.84 and a beta of 1.36.

Credit Acceptance (NASDAQ:CACC) last posted its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share for the quarter, missing analysts’ consensus estimates 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 analyst estimates of $580.77 million. During the same period last year, the company posted $9.35 earnings per share. The company’s revenue was up 1.6% compared to the same quarter last year. Sell-side analysts expect that Credit Acceptance Corporation will post 47.5 earnings per share for the current year.

Insider Buying and Selling

In other news, major shareholder Jill Foss Watson sold 11,000 shares of Credit Acceptance stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $653.24, for a total transaction of $7,185,640.00. Following the completion of the sale, the insider directly owned 49,346 shares in the company, valued at $32,234,781.04. The trade was a 18.23% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Erin J. Kerber sold 8,656 shares of the business’s stock in a transaction that occurred on Wednesday, June 24th. The shares were 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 directly owned 25,711 shares of the company’s stock, valued at approximately $15,450,768.34. The trade was a 25.19% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 70,816 shares of company stock worth $41,728,507. Insiders own 6.10% of the company’s stock.

Hedge Funds Weigh In On Credit Acceptance

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. State of Wyoming bought a new stake in Credit Acceptance in the fourth quarter worth approximately $27,000. Kestra Advisory Services LLC bought a new position in shares of Credit Acceptance during the 4th quarter valued at $27,000. Parallel Advisors LLC lifted its stake in shares of 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 last quarter. Altshuler Shaham Ltd lifted its stake in shares of Credit Acceptance by 37.3% in the 1st quarter. Altshuler Shaham Ltd now owns 70 shares of the credit services provider’s stock valued at $30,000 after purchasing an additional 19 shares during the last quarter. Finally, Rockefeller Capital Management L.P. boosted its holdings in Credit Acceptance by 53.3% in the fourth 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 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.