Insider Selling: Credit Acceptance (NASDAQ:CACC) Insider Sells $1,452,756.94 in Stock

Credit Acceptance Corporation (NASDAQ:CACC) insider Nicholas Elliott sold 2,306 shares of the firm’s stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $629.99, for a total value of $1,452,756.94. Following the transaction, the insider owned 20,897 shares of the company’s stock, valued at $13,164,901.03. This represents a 9.94% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Credit Acceptance Price Performance

Shares of NASDAQ CACC traded down $1.49 during midday trading on Tuesday, reaching $636.74. 110,294 shares of the stock traded hands, compared to its average volume of 191,478. The company has a debt-to-equity ratio of 4.09, a current ratio of 13.62 and a quick ratio of 13.62. The stock has a market capitalization of $6.66 billion, a PE ratio of 15.82 and a beta of 1.38. Credit Acceptance Corporation has a one year low of $401.90 and a one year high of $645.00. The company’s 50 day moving average is $551.40 and its 200 day moving average is $497.32.

Credit Acceptance (NASDAQ:CACC) last announced its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share for the quarter, missing the consensus estimate of $10.73 by ($0.02). Credit Acceptance had a return on equity of 29.95% and a net margin of 19.49%.The business had revenue of $406.00 million during the quarter, compared to the consensus estimate of $580.77 million. During the same quarter in the prior year, the firm posted $9.35 EPS. The company’s revenue for the quarter was up 1.6% on a year-over-year basis. On average, equities research analysts anticipate that Credit Acceptance Corporation will post 47.5 earnings per share for the current year.

Institutional Investors Weigh In On Credit Acceptance

Several hedge funds and other institutional investors have recently modified their holdings of the business. Empowered Funds LLC purchased a new stake in shares of Credit Acceptance in the first quarter worth approximately $278,000. Parallel Advisors LLC boosted its holdings in Credit Acceptance by 590.0% during the 1st 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. Bank of America Corp DE grew its position in Credit Acceptance by 47.9% in the 1st quarter. Bank of America Corp DE now owns 44,586 shares of the credit services provider’s stock valued at $18,880,000 after acquiring an additional 14,439 shares during the last quarter. Altshuler Shaham Ltd grew its position in Credit Acceptance by 37.3% in the 1st quarter. Altshuler Shaham Ltd now owns 70 shares of the credit services provider’s stock valued at $30,000 after acquiring an additional 19 shares during the last quarter. Finally, California State Teachers Retirement System increased its stake in Credit Acceptance by 19.9% in the first quarter. California State Teachers Retirement System now owns 6,308 shares of the credit services provider’s stock worth $2,671,000 after purchasing an additional 1,046 shares during the period. 81.71% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the company. Zacks Research cut Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 13th. Stephens boosted their target price on Credit Acceptance from $450.00 to $540.00 and gave the company an “equal weight” rating in a research report on Friday, April 17th. TD Cowen raised their price target on Credit Acceptance from $450.00 to $500.00 and gave the stock a “hold” rating in a research report on Wednesday, May 6th. 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 investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $520.00.

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.