Goodnow Investment Group LLC Acquires New Stake in Credit Acceptance Corporation $CACC

Goodnow Investment Group LLC bought a new position in shares of Credit Acceptance Corporation (NASDAQ:CACC) in the 2nd quarter, HoldingsChannel.com reports. The institutional investor bought 106,131 shares of the credit services provider’s stock, valued at approximately $67,578,000. Credit Acceptance accounts for about 7.0% of Goodnow Investment Group LLC’s investment portfolio, making the stock its 3rd biggest position.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Royal Bank of Canada grew its position in shares of Credit Acceptance by 31.6% in the 1st quarter. Royal Bank of Canada now owns 1,916 shares of the credit services provider’s stock valued at $989,000 after buying an additional 460 shares during the last quarter. AQR Capital Management LLC raised its position in shares of Credit Acceptance by 230.6% during the first quarter. AQR Capital Management LLC now owns 7,885 shares of the credit services provider’s stock worth $3,961,000 after acquiring an additional 5,500 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of Credit Acceptance by 3.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 23,886 shares of the credit services provider’s stock worth $12,334,000 after acquiring an additional 900 shares during the period. Creative Planning lifted its stake in shares of Credit Acceptance by 35.6% in the second quarter. Creative Planning now owns 529 shares of the credit services provider’s stock worth $269,000 after acquiring an additional 139 shares during the period. Finally, JPMorgan Chase & Co. boosted its holdings in Credit Acceptance by 4.8% in the second quarter. JPMorgan Chase & Co. now owns 5,077 shares of the credit services provider’s stock valued at $2,586,000 after acquiring an additional 232 shares during the last quarter. 81.71% of the stock is owned by institutional investors and hedge funds.

Credit Acceptance Price Performance

Shares of Credit Acceptance stock opened at $603.07 on Tuesday. The business’s 50 day simple moving average is $600.52 and its two-hundred day simple moving average is $536.75. Credit Acceptance Corporation has a one year low of $401.90 and a one year high of $668.86. The company has a debt-to-equity ratio of 3.84, a current ratio of 14.89 and a quick ratio of 14.89. The stock has a market capitalization of $6.31 billion, a P/E ratio of 13.26 and a beta of 1.37.

Credit Acceptance (NASDAQ:CACC) last announced its quarterly earnings results on Tuesday, August 4th. The credit services provider reported $12.12 EPS for the quarter, missing analysts’ consensus estimates of $12.20 by ($0.08). The business had revenue of $415.00 million during the quarter, compared to analysts’ expectations of $588.07 million. Credit Acceptance had a return on equity of 31.67% and a net margin of 21.54%.The business’s revenue was up .6% compared to the same quarter last year. During the same period in the previous year, the business earned $10.05 EPS. Analysts forecast that Credit Acceptance Corporation will post 47.8 EPS for the current year.

Insider Buying and Selling at Credit Acceptance

In other news, insider Nicholas J. Elliott sold 3,487 shares of Credit Acceptance stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $601.01, for a total value of $2,095,721.87. Following the completion of the transaction, the insider owned 20,897 shares of the company’s stock, valued at $12,559,305.97. The trade was a 14.30% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 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 that occurred on Wednesday, June 24th. The shares were sold at an average price of $600.00, for a total value of $3,600,000.00. Following the completion of the transaction, the chief operating officer directly owned 31,609 shares in the company, valued at $18,965,400. This trade represents a 15.95% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 44,289 shares of company stock valued at $27,525,241 in the last ninety days. Corporate insiders own 6.10% of the company’s stock.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on CACC shares. TD Cowen raised their price objective on shares of Credit Acceptance from $575.00 to $600.00 and gave the company a “hold” rating in a research note on Wednesday, August 5th. Weiss Ratings upgraded shares of Credit Acceptance from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, July 16th. Finally, Zacks Research downgraded shares of Credit Acceptance from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 13th. One investment analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $570.00.

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.