Credit Acceptance (NASDAQ:CACC) Upgraded to Buy at StockNews.com

StockNews.com upgraded shares of Credit Acceptance (NASDAQ:CACC) from a hold rating to a buy rating in a research note issued to investors on Friday morning.

Several other equities research analysts have also issued reports on the stock. Stephens lifted their price target on shares of Credit Acceptance from $452.00 to $500.00 and gave the company an “equal weight” rating in a research note on Friday. TD Cowen lowered their target price on Credit Acceptance from $400.00 to $380.00 and set a “sell” rating on the stock in a research report on Friday, November 1st.

Credit Acceptance Stock Down 1.2 %

NASDAQ:CACC opened at $507.77 on Friday. Credit Acceptance has a 1 year low of $409.22 and a 1 year high of $616.66. The stock has a 50-day moving average price of $483.00 and a two-hundred day moving average price of $474.63. The stock has a market cap of $6.15 billion, a price-to-earnings ratio of 34.10 and a beta of 1.46. The company has a current ratio of 23.63, a quick ratio of 23.63 and a debt-to-equity ratio of 3.79.

Credit Acceptance (NASDAQ:CACC) last released its quarterly earnings results on Thursday, January 30th. The credit services provider reported $10.17 earnings per share for the quarter, beating the consensus estimate of $7.70 by $2.47. Credit Acceptance had a net margin of 9.08% and a return on equity of 29.18%. As a group, equities analysts expect that Credit Acceptance will post 36.53 earnings per share for the current year.

Insiders Place Their Bets

In related news, COO Jonathan Lum sold 552 shares of the company’s stock in a transaction dated Tuesday, December 17th. The shares were sold at an average price of $489.90, for a total value of $270,424.80. Following the transaction, the chief operating officer now directly owns 31,493 shares in the company, valued at approximately $15,428,420.70. This represents a 1.72 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 5.30% of the company’s stock.

Hedge Funds Weigh In On Credit Acceptance

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Abrams Bison Investments LLC boosted its position in shares of Credit Acceptance by 30.5% during the 3rd quarter. Abrams Bison Investments LLC now owns 228,306 shares of the credit services provider’s stock worth $101,235,000 after acquiring an additional 53,306 shares in the last quarter. Smead Capital Management Inc. boosted its holdings in shares of Credit Acceptance by 3.5% in the 3rd quarter. Smead Capital Management Inc. now owns 207,828 shares of the credit services provider’s stock valued at $92,155,000 after purchasing an additional 7,012 shares in the last quarter. MIG Capital LLC increased its stake in shares of Credit Acceptance by 18.7% in the 3rd quarter. MIG Capital LLC now owns 116,491 shares of the credit services provider’s stock valued at $51,654,000 after purchasing an additional 18,351 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of Credit Acceptance by 2.3% during the 3rd quarter. Geode Capital Management LLC now owns 111,379 shares of the credit services provider’s stock worth $49,401,000 after buying an additional 2,522 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its position in shares of Credit Acceptance by 24.5% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 94,051 shares of the credit services provider’s stock worth $41,704,000 after buying an additional 18,530 shares during the last quarter. 81.71% of the stock is owned by institutional investors and hedge funds.

Credit Acceptance Company Profile

Credit Acceptance Corporation engages in the provision of financing programs, and related products and services in the United States. The company advances money to automobile dealers in exchange for the right to service the underlying consumer loans; and buys the consumer loans from the dealers and keeps the amount collected from the consumers.