Credit Acceptance Corporation (CACC) Hits New 1-Year High Following Earnings Beat

Credit Acceptance Corporation (NASDAQ:CACC)’s share price hit a new 52-week high on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $271.42 and last traded at $271.87, with a volume of 473,387 shares traded. The stock had previously closed at $249.10.

The credit services provider reported $5.22 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $4.89 by $0.33. Credit Acceptance Corporation had a return on equity of 32.24% and a net margin of 35.13%. The business had revenue of $253.20 million for the quarter, compared to analyst estimates of $268.18 million. During the same period last year, the company earned $4.38 EPS. The firm’s revenue was up 14.5% on a year-over-year basis.

Several research analysts have recently issued reports on CACC shares. Zacks Investment Research upgraded Credit Acceptance Corporation from a “hold” rating to a “strong-buy” rating and set a $248.00 price target on the stock in a research report on Thursday, May 4th. BidaskClub upgraded Credit Acceptance Corporation from a “buy” rating to a “strong-buy” rating in a research report on Friday, June 23rd. Janney Montgomery Scott upgraded Credit Acceptance Corporation from a “sell” rating to a “neutral” rating and raised their price target for the stock from $187.00 to $200.00 in a research report on Tuesday, May 2nd. BMO Capital Markets reiterated a “market perform” rating and set a $226.00 target price (up from $212.00) on shares of Credit Acceptance Corporation in a report on Wednesday, May 3rd. Finally, Raymond James Financial, Inc. upgraded Credit Acceptance Corporation from an “underperform” rating to a “market perform” rating in a report on Tuesday, August 1st. Four investment analysts have rated the stock with a sell rating, six have assigned a hold rating and one has issued a buy rating to the stock. Credit Acceptance Corporation has a consensus rating of “Hold” and an average price target of $216.56.

In other Credit Acceptance Corporation news, CFO Kenneth Booth sold 2,000 shares of Credit Acceptance Corporation stock in a transaction dated Wednesday, August 2nd. The stock was sold at an average price of $273.01, for a total value of $546,020.00. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Douglas W. Busk sold 2,500 shares of Credit Acceptance Corporation stock in a transaction dated Wednesday, August 2nd. The shares were sold at an average price of $267.72, for a total value of $669,300.00. The disclosure for this sale can be found here. Insiders sold a total of 357,114 shares of company stock worth $87,000,109 in the last three months. Company insiders own 5.80% of the company’s stock.

Several hedge funds have recently added to or reduced their stakes in CACC. Russell Investments Group Ltd. increased its stake in Credit Acceptance Corporation by 46.1% in the first quarter. Russell Investments Group Ltd. now owns 732 shares of the credit services provider’s stock worth $146,000 after buying an additional 231 shares in the last quarter. SG Americas Securities LLC increased its stake in Credit Acceptance Corporation by 102.8% in the second quarter. SG Americas Securities LLC now owns 618 shares of the credit services provider’s stock worth $159,000 after buying an additional 22,463 shares in the last quarter. The Manufacturers Life Insurance Company increased its stake in Credit Acceptance Corporation by 6.9% in the second quarter. The Manufacturers Life Insurance Company now owns 619 shares of the credit services provider’s stock worth $159,000 after buying an additional 40 shares in the last quarter. Oppenheimer Asset Management Inc. bought a new stake in Credit Acceptance Corporation during the first quarter worth about $177,000. Finally, Koch Industries Inc. bought a new stake in Credit Acceptance Corporation during the second quarter worth about $240,000. 72.98% of the stock is currently owned by institutional investors and hedge funds.

The company has a market cap of $5.09 billion, a price-to-earnings ratio of 14.31 and a beta of 0.51. The stock’s 50 day moving average price is $257.10 and its 200-day moving average price is $221.97.

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Credit Acceptance Corporation Company Profile

Credit Acceptance Corporation offers financing programs that enable automobile dealers to sell vehicles to consumers. The Company’s financing programs are offered through a network of automobile dealers. The Company has two Dealers financing programs: the Portfolio Program and the Purchase Program. Under the Portfolio Program, the Company advances money to dealers (Dealer Loan) in exchange for the right to service the underlying consumer loans.

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