Credit Acceptance (NASDAQ:CACC) Price Target Raised to $575.00 at TD Cowen

Credit Acceptance (NASDAQ:CACC) had its price target hoisted by stock analysts at TD Cowen from $500.00 to $575.00 in a research note issued on Tuesday,Benzinga reports. The brokerage currently has a “hold” rating on the credit services provider’s stock. TD Cowen’s price objective would indicate a potential downside of 12.62% from the stock’s previous close.

A number of other analysts have also recently weighed in on CACC. Zacks Research downgraded shares of Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, May 13th. Weiss Ratings upgraded Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, May 8th. Finally, Stephens increased their price target 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. Four analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $557.50.

Credit Acceptance Stock Up 0.1%

NASDAQ CACC traded up $0.84 on Tuesday, hitting $658.04. 22,500 shares of the stock traded hands, compared to its average volume of 189,355. The company has a current ratio of 13.62, a quick ratio of 13.62 and a debt-to-equity ratio of 4.09. The stock has a 50-day moving average of $563.96 and a 200 day moving average of $503.80. Credit Acceptance has a twelve month low of $401.90 and a twelve month high of $668.86. The company has a market capitalization of $6.88 billion, a P/E ratio of 16.39 and a beta of 1.36.

Credit Acceptance (NASDAQ:CACC) last issued its quarterly earnings results 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 during the quarter, compared to the consensus estimate of $580.77 million. During the same quarter last year, the firm posted $9.35 earnings per share. Credit Acceptance’s revenue was up 1.6% compared to the same quarter last year. As a group, analysts expect that Credit Acceptance will post 47.5 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Jay D. Martin sold 3,000 shares of the stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $601.04, for a total value of $1,803,120.00. Following the completion of the transaction, the chief financial officer owned 25,963 shares of the company’s stock, valued at approximately $15,604,801.52. This represents a 10.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jonathan Lum sold 6,000 shares of the company’s stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $600.00, for a total transaction of $3,600,000.00. Following the completion of the sale, the chief operating officer directly owned 31,609 shares of the company’s stock, valued at $18,965,400. The trade was a 15.95% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 59,816 shares of company stock worth $34,542,867 over the last ninety days. 6.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Credit Acceptance

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. M&T Bank Corp bought a new stake in shares of Credit Acceptance in the 4th quarter worth $208,294,000. Boston Partners boosted its stake in Credit Acceptance by 3.4% during the fourth quarter. Boston Partners now owns 456,253 shares of the credit services provider’s stock valued at $202,373,000 after buying an additional 14,877 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in Credit Acceptance by 3.1% during the first quarter. Dimensional Fund Advisors LP now owns 230,715 shares of the credit services provider’s stock valued at $97,701,000 after buying an additional 6,843 shares in the last quarter. Smead Capital Management Inc. grew its holdings in Credit Acceptance by 17.0% during the second quarter. Smead Capital Management Inc. now owns 216,811 shares of the credit services provider’s stock worth $110,450,000 after acquiring an additional 31,438 shares during the period. Finally, Universal Beteiligungs und Servicegesellschaft mbH raised its position in Credit Acceptance by 764.8% in the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 203,879 shares of the credit services provider’s stock worth $91,652,000 after acquiring an additional 180,304 shares in the last quarter. 81.71% of the stock is 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.