Credit Acceptance (CACC) Stock Rating Upgraded by Zacks Investment Research
Credit Acceptance (NASDAQ:CACC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Monday. The firm presently has a $473.00 target price on the credit services provider’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 12.58% from the stock’s previous close.
According to Zacks, “Credit Acceptance’s shares have outperformed the industry in the last six months. The company surpassed the Zacks Consensus Estimate for earnings in two of the trailing four quarters. Its third-quarter 2018 results were aided by an increase in revenues. Continued rise in revenues, primarily driven by higher finance charges, higher interest rates and increase in consumer loans, are expected to support growth. While elevated expenses, deterioration of asset quality and high debt levels remain near-term concerns, an efficient share repurchase program continues to boost investors’ confidence in the stock.”
Several other equities analysts have also commented on the company. BidaskClub upgraded Credit Acceptance from a “hold” rating to a “buy” rating in a research report on Saturday. BMO Capital Markets increased their price objective on Credit Acceptance from $312.00 to $333.00 and gave the company a “market perform” rating in a research report on Thursday, November 1st. Credit Suisse Group increased their price objective on Credit Acceptance from $310.00 to $335.00 and gave the company an “underperform” rating in a research report on Tuesday, October 30th. Oppenheimer set a $420.00 price objective on Credit Acceptance and gave the company a “buy” rating in a research report on Tuesday, October 30th. Finally, JMP Securities increased their price objective on Credit Acceptance from $260.00 to $350.00 and gave the company a “market underperform” rating in a research report on Thursday, August 2nd. Three equities research analysts have rated the stock with a sell rating, three have issued a hold rating and four have assigned a buy rating to the company. Credit Acceptance presently has an average rating of “Hold” and a consensus price target of $362.71.
Credit Acceptance (NASDAQ:CACC) last announced its quarterly earnings data on Monday, October 29th. The credit services provider reported $7.75 EPS for the quarter, beating the consensus estimate of $6.90 by $0.85. The firm had revenue of $332.00 million for the quarter, compared to analyst estimates of $327.45 million. Credit Acceptance had a return on equity of 28.83% and a net margin of 48.70%. The company’s revenue was up 16.9% on a year-over-year basis. During the same period in the prior year, the company earned $5.43 EPS. As a group, research analysts anticipate that Credit Acceptance will post 27.57 EPS for the current fiscal year.
In related news, insider Arthur L. Smith sold 2,000 shares of the stock in a transaction dated Wednesday, August 22nd. The stock was sold at an average price of $460.98, for a total transaction of $921,960.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Prescott General Partners Llc sold 1,300 shares of the stock in a transaction dated Friday, August 24th. The shares were sold at an average price of $447.56, for a total value of $581,828.00. The disclosure for this sale can be found here. Insiders have sold a total of 72,018 shares of company stock valued at $31,599,433 over the last 90 days. 5.40% of the stock is currently owned by company insiders.
A number of hedge funds have recently modified their holdings of CACC. Legal & General Group Plc boosted its holdings in Credit Acceptance by 7.7% during the 1st quarter. Legal & General Group Plc now owns 5,362 shares of the credit services provider’s stock valued at $1,771,000 after acquiring an additional 383 shares during the period. Allianz Asset Management GmbH boosted its holdings in Credit Acceptance by 2.1% during the 1st quarter. Allianz Asset Management GmbH now owns 13,039 shares of the credit services provider’s stock valued at $4,309,000 after acquiring an additional 266 shares during the period. State of Alaska Department of Revenue boosted its holdings in Credit Acceptance by 32.0% during the 2nd quarter. State of Alaska Department of Revenue now owns 1,360 shares of the credit services provider’s stock valued at $480,000 after acquiring an additional 330 shares during the period. Xact Kapitalforvaltning AB boosted its holdings in Credit Acceptance by 124.2% during the 2nd quarter. Xact Kapitalforvaltning AB now owns 1,986 shares of the credit services provider’s stock valued at $702,000 after acquiring an additional 1,100 shares during the period. Finally, Amalgamated Bank boosted its holdings in Credit Acceptance by 9.8% during the 2nd quarter. Amalgamated Bank now owns 2,594 shares of the credit services provider’s stock valued at $917,000 after acquiring an additional 232 shares during the period. Institutional investors own 66.75% of the company’s stock.
About Credit Acceptance
Credit Acceptance Corporation provides financing programs, and related products and services to independent and franchised automobile dealers in the United States. The company advances money to dealers in exchange for the right to service the underlying consumer loans; and buys the consumer loans from the dealers and keeps various amounts collected from the consumers.
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