Credit Acceptance (NASDAQ:CACC) Stock Rating Lowered by Zacks Research

Credit Acceptance (NASDAQ:CACC) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Tuesday, Zacks reports.

A number of other equities analysts also recently weighed in on CACC. TD Cowen reduced their price target on Credit Acceptance from $590.00 to $470.00 and set a “hold” rating for the company in a research report on Friday, October 30th. Weiss Ratings downgraded shares of Credit Acceptance from a “buy (b-)” rating to a “hold (c)” rating in a report on Monday. Three research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus target price of $505.00.

Credit Acceptance Stock Up 3.8%

NASDAQ:CACC opened at $498.68 on Tuesday. The company has a debt-to-equity ratio of 4.68, a quick ratio of 13.49 and a current ratio of 13.49. The company has a market cap of $5.06 billion, a PE ratio of 16.29 and a beta of 1.45. Credit Acceptance has a 52-week low of $401.90 and a 52-week high of $668.86. The stock has a 50-day simple moving average of $557.42 and a 200 day simple moving average of $537.69.

Credit Acceptance (NASDAQ:CACC) last announced its earnings results on Thursday, October 29th. The credit services provider reported $13.01 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $12.86 by $0.15. The business had revenue of $420.30 million for the quarter, compared to analyst estimates of $596.40 million. Credit Acceptance had a return on equity of 33.84% and a net margin of 14.39%. Credit Acceptance’s revenue for the quarter was up 2.1% compared to the same quarter last year. During the same quarter last year, the firm earned $10.28 EPS. On average, sell-side analysts expect that Credit Acceptance will post 47.61 EPS for the current fiscal year.

Institutional Investors Weigh In On Credit Acceptance

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Bank of New York Mellon Corp acquired a new position in shares of Credit Acceptance during the 2nd quarter worth about $19,347,000. The Manufacturers Life Insurance Company bought a new position in shares of Credit Acceptance in the 2nd quarter valued at about $1,337,000. Corient Private Wealth LP bought a new position in shares of Credit Acceptance in the 2nd quarter valued at about $856,000. BlackRock Inc. acquired a new stake in shares of Credit Acceptance in the second quarter valued at about $408,849,000. Finally, Jupiter Topco LLC acquired a new stake in shares of Credit Acceptance in the second quarter valued at about $1,812,000. 81.71% of the stock is owned by institutional investors.

About Credit Acceptance

Credit Acceptance Corporation (NASDAQ:CACC) is a specialized automobile finance company that provides financing programs for consumers who may have difficulty obtaining credit through traditional lenders. The company primarily operates through an indirect lending model, working with automobile dealers who offer financing to customers purchasing new or used vehicles.

Credit Acceptance purchases or services automotive loans originated through its dealer-partner network. Its programs are designed to help dealers sell vehicles to a broader range of consumers, while the company manages loan underwriting, servicing, collections, and related risk-management activities.