Credit Acceptance (NASDAQ:CACC) Sets New 12-Month High – Time to Buy?

Shares of Credit Acceptance Corporation (NASDAQ:CACC) reached a new 52-week high on Tuesday . The company traded as high as $589.46 and last traded at $595.24, with a volume of 27071 shares trading hands. The stock had previously closed at $577.53.

Wall Street Analyst Weigh In

CACC has been the subject of several analyst reports. TD Cowen increased their target price 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. Stephens increased their price objective on shares of Credit Acceptance from $450.00 to $540.00 and gave the stock an “equal weight” rating in a research note on Friday, April 17th. Weiss Ratings upgraded shares of Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, May 8th. Finally, Zacks Research lowered Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 13th. Four equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat, Credit Acceptance currently has an average rating of “Hold” and an average target price of $520.00.

Credit Acceptance Stock Performance

The company has a market capitalization of $6.21 billion, a P/E ratio of 14.76 and a beta of 1.38. 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 business’s fifty day simple moving average is $538.17 and its 200-day simple moving average is $491.95.

Credit Acceptance (NASDAQ:CACC) last issued its quarterly earnings data 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 net margin of 19.49% and a return on equity of 29.95%. The firm had revenue of $406.00 million for the quarter, compared to analysts’ expectations of $580.77 million. During the same quarter in the previous year, the business earned $9.35 EPS. The company’s revenue for the quarter was up 1.6% on a year-over-year basis. As a group, equities 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 other Credit Acceptance news, COO Jonathan Lum sold 3,000 shares of Credit Acceptance stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $535.00, for a total value of $1,605,000.00. Following the sale, the chief operating officer owned 31,609 shares of the company’s stock, valued at $16,910,815. The trade was a 8.67% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kenneth Booth sold 4,000 shares of the company’s stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $534.00, for a total value of $2,136,000.00. Following the sale, the director directly owned 22,832 shares in the company, valued at $12,192,288. This trade represents a 14.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 26,527 shares of company stock worth $14,203,265 over the last three months. 6.10% of the stock is owned by company insiders.

Institutional Trading of Credit Acceptance

A number of large investors have recently made changes to their positions in CACC. State of Wyoming purchased a new position in shares of Credit Acceptance in the 4th quarter worth approximately $27,000. Kestra Advisory Services LLC purchased a new stake in shares of Credit Acceptance in the fourth quarter valued at $27,000. Rockefeller Capital Management L.P. lifted its holdings in shares of Credit Acceptance by 53.3% in the 4th quarter. Rockefeller Capital Management L.P. now owns 69 shares of the credit services provider’s stock worth $31,000 after acquiring an additional 24 shares during the last quarter. Parallel Advisors LLC lifted its holdings 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 worth $29,000 after acquiring an additional 59 shares during the last quarter. Finally, Altshuler Shaham Ltd boosted its stake in shares of Credit Acceptance by 37.3% during the 1st quarter. Altshuler Shaham Ltd now owns 70 shares of the credit services provider’s stock worth $30,000 after purchasing an additional 19 shares during the period. 81.71% of the stock is currently owned by institutional investors.

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.