Insider Selling: Credit Acceptance (NASDAQ:CACC) Insider Sells $5,201,736.64 in Stock

Credit Acceptance Corporation (NASDAQ:CACC) insider Erin Kerber sold 8,656 shares of the business’s stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $600.94, for a total value of $5,201,736.64. Following the transaction, the insider 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Credit Acceptance Stock Performance

NASDAQ:CACC opened at $629.62 on Monday. The business’s 50-day moving average price is $548.53 and its two-hundred day moving average price is $496.07. Credit Acceptance Corporation has a twelve month low of $401.90 and a twelve month high of $638.55. The stock has a market cap of $6.59 billion, a P/E ratio of 15.65 and a beta of 1.38. 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 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). The business had revenue of $406.00 million for the quarter, compared to analysts’ expectations of $580.77 million. Credit Acceptance had a return on equity of 29.95% and a net margin of 19.49%.The firm’s revenue for the quarter was up 1.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $9.35 EPS. As a group, equities analysts predict that Credit Acceptance Corporation will post 47.5 EPS for the current fiscal year.

Institutional Trading of Credit Acceptance

A number of hedge funds have recently bought and sold shares of CACC. Empowered Funds LLC purchased a new stake in Credit Acceptance in the first quarter worth approximately $278,000. Parallel Advisors LLC raised its stake in shares of Credit Acceptance by 590.0% during the first quarter. Parallel Advisors LLC now owns 69 shares of the credit services provider’s stock worth $29,000 after acquiring an additional 59 shares in the last quarter. Bank of America Corp DE lifted its holdings in shares of Credit Acceptance by 47.9% in the 1st quarter. Bank of America Corp DE now owns 44,586 shares of the credit services provider’s stock worth $18,880,000 after acquiring an additional 14,439 shares during the last quarter. Altshuler Shaham Ltd boosted 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 in the last quarter. Finally, California State Teachers Retirement System boosted its stake in shares of Credit Acceptance by 19.9% in the 1st quarter. California State Teachers Retirement System now owns 6,308 shares of the credit services provider’s stock valued at $2,671,000 after purchasing an additional 1,046 shares in the last quarter. Institutional investors own 81.71% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. Weiss Ratings raised shares of Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, May 8th. Stephens lifted 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 lifted 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, Zacks Research lowered shares of Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, May 13th. Four analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $520.00.

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.