Jonathan Lum Sells 6,000 Shares of Credit Acceptance (NASDAQ:CACC) Stock

Credit Acceptance Corporation (NASDAQ:CACC) COO Jonathan Lum sold 6,000 shares of the stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $600.00, for a total transaction of $3,600,000.00. Following the completion of the transaction, the chief operating officer owned 31,609 shares of the company’s stock, valued at $18,965,400. This represents a 15.95% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Jonathan Lum also recently made the following trade(s):

• On Monday, April 20th, Jonathan Lum sold 3,000 shares of Credit Acceptance stock. The stock was sold at an average price of $535.00, for a total transaction of $1,605,000.00.

Credit Acceptance Price Performance

Shares of CACC stock traded up $5.92 during midday trading on Friday, reaching $629.62. 204,962 shares of the company traded hands, compared to its average volume of 192,517. The firm’s 50 day simple moving average is $545.89 and its two-hundred day simple moving average is $494.88. The firm has a market cap of $6.59 billion, a PE ratio of 15.65 and a beta of 1.38. The company has a debt-to-equity ratio of 4.09, a current ratio of 13.62 and a quick ratio of 13.62. Credit Acceptance Corporation has a 1-year low of $401.90 and a 1-year high of $638.55.

Credit Acceptance (NASDAQ:CACC) last posted its earnings results on Tuesday, May 5th. The credit services provider reported $10.71 EPS for the quarter, missing analysts’ consensus estimates of $10.73 by ($0.02). Credit Acceptance had a return on equity of 29.95% and a net margin of 19.49%.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 firm posted $9.35 earnings per share. The firm’s revenue for the quarter was up 1.6% compared to the same quarter last year. On average, equities research analysts expect that Credit Acceptance Corporation will post 47.5 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

CACC has been the subject of several research reports. TD Cowen lifted their price objective on Credit Acceptance from $450.00 to $500.00 and gave the stock a “hold” rating in a research report on Wednesday, May 6th. Stephens lifted their price objective on Credit Acceptance from $450.00 to $540.00 and gave the stock an “equal weight” rating in a research report on Friday, April 17th. Zacks Research downgraded shares of Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 13th. Finally, Weiss Ratings raised shares of Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, May 8th. Four equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $520.00.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of CACC. State of Wyoming acquired a new position in Credit Acceptance during the fourth quarter worth approximately $27,000. Kestra Advisory Services LLC acquired a new position in Credit Acceptance in the fourth quarter valued at $27,000. Parallel Advisors LLC grew its position in Credit Acceptance by 590.0% during the first quarter. Parallel Advisors LLC now owns 69 shares of the credit services provider’s stock valued at $29,000 after acquiring an additional 59 shares during the period. Altshuler Shaham Ltd increased its stake in Credit Acceptance by 37.3% during the first quarter. Altshuler Shaham Ltd now owns 70 shares of the credit services provider’s stock worth $30,000 after acquiring an additional 19 shares during the last quarter. Finally, Rockefeller Capital Management L.P. raised 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 purchasing an additional 24 shares during the period. 81.71% of the stock is currently owned by hedge funds and other institutional investors.

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.