Public Employees Retirement System of Ohio Invests $760,000 in Credit Acceptance Corporation $CACC

Public Employees Retirement System of Ohio acquired a new stake in Credit Acceptance Corporation (NASDAQ:CACC) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 1,193 shares of the credit services provider’s stock, valued at approximately $760,000.

Several other hedge funds and other institutional investors have also made changes to their positions in CACC. BlackRock Inc. purchased a new stake in Credit Acceptance during the second quarter worth approximately $408,849,000. Boston Partners boosted its holdings in Credit Acceptance by 3.4% in the fourth quarter. Boston Partners now owns 456,253 shares of the credit services provider’s stock valued at $202,373,000 after purchasing an additional 14,877 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in Credit Acceptance by 3.1% in the first quarter. Dimensional Fund Advisors LP now owns 230,715 shares of the credit services provider’s stock valued at $97,701,000 after purchasing an additional 6,843 shares during the last quarter. Smead Capital Management Inc. increased its stake in Credit Acceptance by 17.0% in the second quarter. Smead Capital Management Inc. now owns 216,811 shares of the credit services provider’s stock valued at $110,450,000 after purchasing an additional 31,438 shares during the last quarter. Finally, Goodnow Investment Group LLC acquired a new stake in Credit Acceptance during the second quarter worth approximately $67,578,000. Institutional investors and hedge funds own 81.71% of the company’s stock.

Insider Buying and Selling

In other news, insider Erin Kerber sold 8,656 shares of the company’s stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $600.94, for a total value of $5,201,736.64. Following the completion of the sale, the insider directly owned 25,711 shares of the company’s stock, valued at approximately $15,450,768.34. This represents a 25.19% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jay Martin sold 3,000 shares of the stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $601.04, for a total transaction of $1,803,120.00. Following the sale, the chief financial officer owned 25,963 shares of the company’s stock, valued at $15,604,801.52. This trade represents a 10.36% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 44,289 shares of company stock valued at $27,525,241 in the last quarter. Corporate insiders own 6.10% of the company’s stock.

Credit Acceptance Trading Up 0.5%

CACC opened at $596.99 on Thursday. The company has a quick ratio of 14.89, a current ratio of 14.89 and a debt-to-equity ratio of 3.84. Credit Acceptance Corporation has a 52 week low of $401.90 and a 52 week high of $668.86. The business’s 50 day moving average is $599.44 and its two-hundred day moving average is $545.40. The firm has a market cap of $6.24 billion, a price-to-earnings ratio of 13.13 and a beta of 1.35.

Credit Acceptance (NASDAQ:CACC) last released its quarterly earnings results on Tuesday, August 4th. The credit services provider reported $12.12 EPS for the quarter, missing the consensus estimate 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 net margin of 21.54% and a return on equity of 31.67%. The firm’s revenue for the quarter was up .6% compared to the same quarter last year. During the same quarter last year, the company earned $10.05 EPS. On average, research analysts predict that Credit Acceptance Corporation will post 47.8 EPS for the current year.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the stock. Weiss Ratings upgraded shares of Credit Acceptance from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, July 16th. TD Cowen increased their target price on shares of Credit Acceptance from $575.00 to $600.00 and gave the company a “hold” rating in a research report on Wednesday, August 5th. Finally, Zacks Research lowered shares of Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research note 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. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $570.00.

Credit Acceptance 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.