Insider Selling: Credit Acceptance (NASDAQ:CACC) Director Sells $1,016,000.00 in Stock

Credit Acceptance Corporation (NASDAQ:CACC) Director Kenneth Booth sold 2,000 shares of the stock in a transaction on Monday, February 9th. The stock was sold at an average price of $508.00, for a total value of $1,016,000.00. Following the sale, the director directly owned 22,832 shares of the company’s stock, valued at approximately $11,598,656. This represents a 8.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website.

Credit Acceptance Stock Performance

Shares of CACC opened at $483.98 on Friday. The stock has a market capitalization of $5.34 billion, a P/E ratio of 13.26 and a beta of 1.27. The company has a debt-to-equity ratio of 3.94, a quick ratio of 15.81 and a current ratio of 15.81. Credit Acceptance Corporation has a 1 year low of $401.90 and a 1 year high of $549.75. The company’s fifty day moving average is $467.83 and its two-hundred day moving average is $474.12.

Credit Acceptance (NASDAQ:CACC) last released its earnings results on Thursday, January 29th. The credit services provider reported $11.35 EPS for the quarter, topping the consensus estimate of $10.30 by $1.05. Credit Acceptance had a net margin of 18.29% and a return on equity of 28.46%. The company had revenue of $408.20 million during the quarter, compared to analysts’ expectations of $582.63 million. During the same quarter last year, the business earned $10.17 EPS. The business’s revenue was up 2.5% on a year-over-year basis. On average, sell-side analysts predict that Credit Acceptance Corporation will post 53.24 earnings per share for the current year.

Hedge Funds Weigh In On Credit Acceptance

Several hedge funds and other institutional investors have recently bought and sold shares of CACC. Allianz Asset Management GmbH lifted its position in Credit Acceptance by 21.3% during the third quarter. Allianz Asset Management GmbH now owns 29,095 shares of the credit services provider’s stock worth $13,585,000 after buying an additional 5,107 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH increased its stake in shares of Credit Acceptance by 16.9% during the 3rd quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 23,575 shares of the credit services provider’s stock valued at $11,008,000 after acquiring an additional 3,400 shares during the last quarter. Envestnet Asset Management Inc. lifted its holdings in shares of Credit Acceptance by 6.8% during the 2nd quarter. Envestnet Asset Management Inc. now owns 32,407 shares of the credit services provider’s stock worth $16,509,000 after acquiring an additional 2,056 shares during the period. SG Americas Securities LLC boosted its position in shares of Credit Acceptance by 430.3% in the third quarter. SG Americas Securities LLC now owns 2,418 shares of the credit services provider’s stock worth $1,129,000 after acquiring an additional 1,962 shares during the last quarter. Finally, KLP Kapitalforvaltning AS grew its holdings in Credit Acceptance by 7.7% in the second quarter. KLP Kapitalforvaltning AS now owns 1,400 shares of the credit services provider’s stock valued at $713,000 after purchasing an additional 100 shares during the period. 81.71% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on CACC. TD Cowen raised their price target on Credit Acceptance from $460.00 to $470.00 and gave the company a “hold” rating in a report on Friday, January 30th. Zacks Research upgraded Credit Acceptance from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, February 3rd. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Credit Acceptance in a research report on Wednesday, January 21st. One research analyst has rated the stock with a Strong Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $470.00.

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.