Credit Acceptance (NASDAQ:CACC) Cut to Hold at StockNews.com

Credit Acceptance (NASDAQ:CACC) was downgraded by stock analysts at StockNews.com from a “buy” rating to a “hold” rating in a research report issued on Tuesday.

Other equities research analysts also recently issued reports about the company. TD Cowen lowered their price target on Credit Acceptance from $400.00 to $380.00 and set a “sell” rating for the company in a report on Friday, November 1st. Stephens started coverage on shares of Credit Acceptance in a research note on Wednesday, November 13th. They set an “equal weight” rating and a $452.00 target price for the company.

Credit Acceptance Stock Down 1.0 %

Shares of CACC traded down $4.51 during trading on Tuesday, reaching $466.28. The company’s stock had a trading volume of 54,930 shares, compared to its average volume of 51,583. The company has a market cap of $5.65 billion, a price-to-earnings ratio of 31.31 and a beta of 1.46. The company has a quick ratio of 23.63, a current ratio of 23.63 and a debt-to-equity ratio of 3.79. The company has a fifty day moving average of $466.50 and a two-hundred day moving average of $478.16. Credit Acceptance has a twelve month low of $409.22 and a twelve month high of $616.66.

Credit Acceptance (NASDAQ:CACC) last posted its quarterly earnings results on Wednesday, October 30th. The credit services provider reported $8.79 earnings per share (EPS) for the quarter, beating the consensus estimate of $7.88 by $0.91. The firm had revenue of $550.30 million for the quarter, compared to analysts’ expectations of $548.13 million. Credit Acceptance had a net margin of 9.08% and a return on equity of 29.18%. The firm’s quarterly revenue was up 15.0% on a year-over-year basis. During the same period in the prior year, the company posted $10.70 earnings per share. On average, sell-side analysts predict that Credit Acceptance will post 36.54 EPS for the current fiscal year.

Insider Buying and Selling

In other news, COO Jonathan Lum sold 552 shares of the stock in a transaction on Tuesday, December 17th. The stock was sold at an average price of $489.90, for a total transaction of $270,424.80. Following the completion of the sale, the chief operating officer now owns 31,493 shares in the company, valued at approximately $15,428,420.70. This represents a 1.72 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 5.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Credit Acceptance

A number of institutional investors and hedge funds have recently modified their holdings of CACC. Rhumbline Advisers boosted its stake in Credit Acceptance by 10.1% in the 2nd quarter. Rhumbline Advisers now owns 9,235 shares of the credit services provider’s stock worth $4,753,000 after purchasing an additional 844 shares during the period. Headlands Technologies LLC lifted its holdings in shares of Credit Acceptance by 24,850.0% in the second quarter. Headlands Technologies LLC now owns 499 shares of the credit services provider’s stock valued at $257,000 after purchasing an additional 497 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in shares of Credit Acceptance by 4.1% in the second quarter. Dimensional Fund Advisors LP now owns 179,655 shares of the credit services provider’s stock worth $92,455,000 after buying an additional 7,064 shares during the period. Renaissance Technologies LLC grew its holdings in shares of Credit Acceptance by 38.6% during the second quarter. Renaissance Technologies LLC now owns 7,900 shares of the credit services provider’s stock valued at $4,066,000 after buying an additional 2,200 shares in the last quarter. Finally, XTX Topco Ltd acquired a new position in Credit Acceptance during the second quarter valued at $876,000. 81.71% of the stock is owned by institutional investors and hedge funds.

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.