Credit Acceptance (NASDAQ:CACC) Shares Gap Down – What’s Next?

Shares of Credit Acceptance Corporation (NASDAQ:CACC) gapped down prior to trading on Friday. The stock had previously closed at $575.78, but opened at $497.91. Credit Acceptance shares last traded at $480.3350, with a volume of 70,766 shares changing hands.

Trending Headlines about Credit Acceptance

Here are the key news stories impacting Credit Acceptance this week:

• Positive Sentiment: Third-quarter adjusted net income increased to $135.5 million, or $13.01 per diluted share, from $117.9 million, or $10.28 per share, a year earlier. Adjusted EPS also exceeded the $12.86 analyst consensus. Credit Acceptance Announces Third Quarter 2026 Results
• Positive Sentiment: Revenue rose approximately 2.1% year over year to $594.6 million. The company also highlighted a record number of dealers, supporting the potential for continued loan-origination growth. Credit Acceptance Q3 Revenue Earnings Flash
• Neutral Sentiment: Revenue was slightly below the FactSet estimate of $596.4 million, limiting the impact of the adjusted-EPS beat. Credit Acceptance Q3 Revenue Earnings Flash
• Negative Sentiment: Credit Acceptance reported a consolidated GAAP net loss of $56.6 million, or $5.43 per share, compared with net income of $108.2 million, or $9.43 per share, in the prior-year quarter. The sizable gap between GAAP and adjusted earnings increases investor uncertainty about the quality and sustainability of reported profits. Credit Acceptance Announces Third Quarter 2026 Results
• Negative Sentiment: Coverage of the results pointed to a forecast change that disappointed investors, offsetting the record dealer count and adjusted earnings growth. Credit Acceptance Q3 2026 Results

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on CACC. TD Cowen decreased their price objective on shares of Credit Acceptance from $600.00 to $590.00 and set a “hold” rating for the company in a report on Tuesday, October 6th. Weiss Ratings restated a “buy (b-)” rating on shares of Credit Acceptance in a report on Wednesday, October 14th. One equities research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $565.00.

Credit Acceptance Stock Down 20.6%

The company has a quick ratio of 14.89, a current ratio of 14.89 and a debt-to-equity ratio of 3.84. The business has a 50-day simple moving average of $566.72 and a 200-day simple moving average of $537.43. The stock has a market cap of $4.78 billion, a P/E ratio of 10.05 and a beta of 1.40.

Credit Acceptance (NASDAQ:CACC) last released its quarterly earnings results on Thursday, October 29th. The credit services provider reported $13.01 EPS for the quarter, beating analysts’ consensus estimates of $12.86 by $0.15. Credit Acceptance had a net margin of 21.54% and a return on equity of 31.67%. The company had revenue of $420.30 million for the quarter, compared to analyst estimates of $596.40 million. During the same quarter last year, the firm posted $10.28 earnings per share. The company’s quarterly revenue was up 2.1% compared to the same quarter last year. Analysts expect that Credit Acceptance Corporation will post 47.64 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Bank of New York Mellon Corp acquired a new position in Credit Acceptance during the 2nd quarter worth $19,347,000. Corient Private Wealth LP acquired a new stake in shares of Credit Acceptance in the second quarter valued at about $856,000. The Manufacturers Life Insurance Company acquired a new stake in shares of Credit Acceptance in the second quarter valued at about $1,337,000. BlackRock Inc. acquired a new stake in shares of Credit Acceptance in the second quarter valued at about $408,849,000. Finally, Jupiter Topco LLC bought a new position in shares of Credit Acceptance in the second quarter worth about $1,812,000. 81.71% of the stock is currently owned by institutional investors and hedge funds.

About Credit Acceptance

Credit Acceptance Corporation (NASDAQ:CACC) is a specialized automobile finance company that provides financing programs for consumers who may have difficulty obtaining credit through traditional lenders. The company primarily operates through an indirect lending model, working with automobile dealers who offer financing to customers purchasing new or used vehicles.

Credit Acceptance purchases or services automotive loans originated through its dealer-partner network. Its programs are designed to help dealers sell vehicles to a broader range of consumers, while the company manages loan underwriting, servicing, collections, and related risk-management activities.