BidaskClub Lowers Credit Acceptance (CACC) to Hold

BidaskClub downgraded shares of Credit Acceptance (NASDAQ:CACC) from a buy rating to a hold rating in a research note issued to investors on Saturday morning.

Several other equities research analysts have also recently weighed in on CACC. Zacks Investment Research raised Credit Acceptance from a hold rating to a buy rating and set a $500.00 price objective on the stock in a research note on Friday, August 3rd. BMO Capital Markets boosted their price objective on Credit Acceptance from $312.00 to $333.00 and gave the stock a market perform rating in a research note on Thursday, November 1st. Oppenheimer set a $420.00 price objective on Credit Acceptance and gave the stock a buy rating in a research note on Tuesday, October 30th. Finally, Credit Suisse Group boosted their price objective on Credit Acceptance from $310.00 to $335.00 and gave the stock an underperform rating in a research note on Tuesday, October 30th. Three research analysts have rated the stock with a sell rating, four have given a hold rating and three have given a buy rating to the company’s stock. The company currently has an average rating of Hold and an average target price of $362.71.

Shares of CACC stock opened at $408.00 on Friday. Credit Acceptance has a 12-month low of $297.63 and a 12-month high of $467.26. The company has a current ratio of 36.75, a quick ratio of 36.75 and a debt-to-equity ratio of 1.97. The stock has a market capitalization of $7.91 billion, a PE ratio of 19.96, a PEG ratio of 0.86 and a beta of 0.52.

Credit Acceptance (NASDAQ:CACC) last issued its earnings results on Monday, October 29th. The credit services provider reported $7.75 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $6.90 by $0.85. Credit Acceptance had a return on equity of 28.83% and a net margin of 48.70%. The firm had revenue of $332.00 million for the quarter, compared to analysts’ expectations of $327.45 million. During the same period in the previous year, the firm posted $5.43 earnings per share. The business’s revenue was up 16.9% compared to the same quarter last year. As a group, analysts predict that Credit Acceptance will post 27.89 EPS for the current year.

In other news, insider Prescott General Partners Llc sold 9,506 shares of the company’s stock in a transaction that occurred on Thursday, November 8th. The stock was sold at an average price of $423.39, for a total transaction of $4,024,745.34. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Scott J. Vassalluzzo sold 5,000 shares of the company’s stock in a transaction that occurred on Thursday, November 15th. The shares were sold at an average price of $413.10, for a total value of $2,065,500.00. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 36,818 shares of company stock worth $15,431,423. Insiders own 5.40% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in CACC. Alps Advisors Inc. grew its stake in shares of Credit Acceptance by 22.2% during the second quarter. Alps Advisors Inc. now owns 1,754 shares of the credit services provider’s stock valued at $567,000 after buying an additional 319 shares during the last quarter. Dupont Capital Management Corp grew its stake in shares of Credit Acceptance by 12.6% during the second quarter. Dupont Capital Management Corp now owns 2,078 shares of the credit services provider’s stock valued at $734,000 after buying an additional 232 shares during the last quarter. Victory Capital Management Inc. boosted its holdings in shares of Credit Acceptance by 13.7% in the second quarter. Victory Capital Management Inc. now owns 7,807 shares of the credit services provider’s stock valued at $2,759,000 after purchasing an additional 938 shares during the period. Virginia Retirement Systems ET AL purchased a new stake in shares of Credit Acceptance in the second quarter valued at approximately $1,378,000. Finally, Financial Architects Inc purchased a new stake in shares of Credit Acceptance in the second quarter valued at approximately $254,000. 62.07% of the stock is currently owned by hedge funds and other institutional investors.

Credit Acceptance Company Profile

Credit Acceptance Corporation provides financing programs, and related products and services to independent and franchised automobile dealers in the United States. The company advances money to dealers in exchange for the right to service the underlying consumer loans; and buys the consumer loans from the dealers and keeps various amounts collected from the consumers.

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Analyst Recommendations for Credit Acceptance (NASDAQ:CACC)

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