Credit Acceptance (NASDAQ:CACC) Sets New 1-Year Low – Here’s Why

Credit Acceptance Corporation (NASDAQ:CACC)’s stock price reached a new 52-week low on Thursday . The stock traded as low as $401.90 and last traded at $421.1340, with a volume of 242571 shares changing hands. The stock had previously closed at $451.39.

Analyst Ratings Changes

CACC has been the topic of a number of recent analyst reports. TD Cowen lowered their target price on shares of Credit Acceptance from $450.00 to $430.00 and set a “sell” rating on the stock in a report on Friday, October 31st. Cowen reissued a “sell” rating on shares of Credit Acceptance in a research report on Friday, October 31st. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Credit Acceptance in a report on Wednesday, October 8th. Two research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Credit Acceptance currently has an average rating of “Reduce” and an average price target of $465.00.

Credit Acceptance Stock Performance

The stock has a market capitalization of $4.66 billion, a price-to-earnings ratio of 12.17 and a beta of 1.16. The company’s fifty day simple moving average is $487.50 and its 200 day simple moving average is $493.03. The company has a quick ratio of 22.03, a current ratio of 22.03 and a debt-to-equity ratio of 4.16.

Credit Acceptance (NASDAQ:CACC) last posted its earnings results on Thursday, October 30th. The credit services provider reported $10.28 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $9.61 by $0.67. Credit Acceptance had a net margin of 18.69% and a return on equity of 27.06%. The company had revenue of $582.40 million during the quarter, compared to analysts’ expectations of $592.19 million. During the same quarter last year, the company posted $9.25 EPS. Credit Acceptance’s quarterly revenue was up 5.8% compared to the same quarter last year. On average, equities research analysts expect that Credit Acceptance Corporation will post 53.24 earnings per share for the current year.

Insider Transactions at Credit Acceptance

In related news, COO Jonathan Lum sold 6,000 shares of Credit Acceptance stock in a transaction that occurred on Monday, August 25th. The stock was sold at an average price of $512.61, for a total transaction of $3,075,660.00. Following the completion of the sale, the chief operating officer directly owned 31,493 shares of the company’s stock, valued at approximately $16,143,626.73. This trade represents a 16.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Kenneth Booth sold 4,000 shares of the business’s stock in a transaction on Thursday, September 18th. The shares were sold at an average price of $506.59, for a total value of $2,026,360.00. Following the completion of the sale, the chief executive officer owned 68,116 shares of the company’s stock, valued at $34,506,884.44. This trade represents a 5.55% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 13,697 shares of company stock worth $6,981,255 over the last quarter. Company insiders own 6.60% of the company’s stock.

Institutional Investors Weigh In On Credit Acceptance

A number of hedge funds and other institutional investors have recently modified their holdings of CACC. State of New Jersey Common Pension Fund D boosted its position in shares of Credit Acceptance by 12.8% in the third quarter. State of New Jersey Common Pension Fund D now owns 4,411 shares of the credit services provider’s stock valued at $2,060,000 after acquiring an additional 499 shares during the period. Mraz Amerine & Associates Inc. raised its stake in Credit Acceptance by 0.8% in the 3rd quarter. Mraz Amerine & Associates Inc. now owns 13,432 shares of the credit services provider’s stock worth $6,272,000 after purchasing an additional 107 shares in the last quarter. Illinois Municipal Retirement Fund acquired a new stake in Credit Acceptance in the 3rd quarter worth about $697,000. Caprock Group LLC bought a new stake in Credit Acceptance in the 3rd quarter valued at about $298,000. Finally, Envestnet Asset Management Inc. grew its position in shares of Credit Acceptance by 8.0% during the 3rd quarter. Envestnet Asset Management Inc. now owns 34,990 shares of the credit services provider’s stock worth $16,338,000 after purchasing an additional 2,583 shares in the last quarter. Institutional investors and hedge funds own 81.71% of the company’s stock.

About Credit Acceptance

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.