Credit Acceptance (NASDAQ:CACC) Hits New 12-Month High – Should You Buy?

Credit Acceptance Corporation (NASDAQ:CACC)’s share price reached a new 52-week high during trading on Tuesday . The company traded as high as $583.86 and last traded at $577.4730, with a volume of 13487 shares traded. The stock had previously closed at $572.79.

Analyst Upgrades and Downgrades

CACC has been the topic of several analyst reports. Weiss Ratings raised Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, May 8th. Zacks Research downgraded Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, May 13th. TD Cowen raised their price objective on shares of Credit Acceptance from $450.00 to $500.00 and gave the company a “hold” rating in a research report on Wednesday, May 6th. Finally, Stephens raised their price objective 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. Four equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $520.00.

Credit Acceptance Trading Up 1.0%

The firm has a market cap of $6.05 billion, a price-to-earnings ratio of 14.37 and a beta of 1.38. The company has a 50-day moving average price of $525.45 and a 200 day moving average price of $487.83. The company has a quick ratio of 13.62, a current ratio of 13.62 and a debt-to-equity ratio of 4.09.

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 the consensus estimate of $10.73 by ($0.02). Credit Acceptance had a net margin of 19.49% and a return on equity of 29.95%. The business had revenue of $406.00 million for the quarter, compared to analyst estimates of $580.77 million. During the same period in the previous year, the firm posted $9.35 earnings per share. The firm’s quarterly revenue was up 1.6% on a year-over-year basis. As a group, research analysts anticipate that Credit Acceptance Corporation will post 47.5 earnings per share for the current fiscal year.

Insider Buying and Selling at Credit Acceptance

In related news, COO Jonathan Lum sold 3,000 shares of Credit Acceptance stock in a transaction on Monday, April 20th. The shares were sold at an average price of $535.00, for a total value of $1,605,000.00. Following the completion of the sale, the chief operating officer owned 31,609 shares of the company’s stock, valued at approximately $16,910,815. The trade was a 8.67% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Erin J. Kerber sold 1,753 shares of the stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $551.62, for a total transaction of $966,989.86. Following the transaction, the insider directly owned 25,711 shares in the company, valued at $14,182,701.82. The trade was a 6.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 in the last quarter. Corporate insiders own 6.10% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. M&T Bank Corp bought a new position in shares of Credit Acceptance in the 4th quarter valued at approximately $208,294,000. Boston Partners acquired a new position in Credit Acceptance during the third quarter valued at approximately $206,327,000. Universal Beteiligungs und Servicegesellschaft mbH grew its holdings in 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 valued at $91,652,000 after purchasing an additional 180,304 shares during the last quarter. Smith Thomas W bought a new position in shares of Credit Acceptance in the fourth quarter valued at approximately $42,083,000. Finally, Renaissance Technologies LLC raised its position in shares of Credit Acceptance by 1,078.0% in the first quarter. Renaissance Technologies LLC now owns 63,468 shares of the credit services provider’s stock valued at $26,876,000 after purchasing an additional 58,080 shares during the period. Institutional investors and hedge funds 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.