Credit Acceptance (NASDAQ:CACC) Upgraded by StockNews.com to Buy Rating

Credit Acceptance (NASDAQ:CACC) was upgraded by StockNews.com from a “hold” rating to a “buy” rating in a note issued to investors on Wednesday.

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

Credit Acceptance Price Performance

Credit Acceptance stock opened at $461.98 on Wednesday. The company has a debt-to-equity ratio of 3.79, a current ratio of 23.63 and a quick ratio of 23.63. The business has a 50 day simple moving average of $467.97 and a 200-day simple moving average of $476.94. Credit Acceptance has a 12 month low of $409.22 and a 12 month high of $616.66. The stock has a market capitalization of $5.60 billion, a PE ratio of 31.03 and a beta of 1.46.

Credit Acceptance (NASDAQ:CACC) last issued its quarterly earnings results on Wednesday, October 30th. The credit services provider reported $8.79 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $7.88 by $0.91. Credit Acceptance had a net margin of 9.08% and a return on equity of 29.18%. The business had revenue of $550.30 million for the quarter, compared to analyst estimates of $548.13 million. During the same period in the previous year, the business posted $10.70 earnings per share. The business’s revenue was up 15.0% compared to the same quarter last year. Equities analysts predict that Credit Acceptance will post 36.54 earnings per share for the current year.

Insiders Place Their Bets

In related news, COO Jonathan Lum sold 552 shares of the firm’s stock in a transaction that occurred on Tuesday, December 17th. The shares were sold at an average price of $489.90, for a total transaction of $270,424.80. Following the sale, the chief operating officer now owns 31,493 shares in the company, valued at approximately $15,428,420.70. This trade represents a 1.72 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 5.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Credit Acceptance

Several institutional investors have recently added to or reduced their stakes in CACC. Dimensional Fund Advisors LP raised its stake in Credit Acceptance by 4.1% during the second quarter. Dimensional Fund Advisors LP now owns 179,655 shares of the credit services provider’s stock worth $92,455,000 after purchasing an additional 7,064 shares during the period. Renaissance Technologies LLC lifted its holdings in shares of Credit Acceptance by 38.6% during the 2nd quarter. Renaissance Technologies LLC now owns 7,900 shares of the credit services provider’s stock valued at $4,066,000 after acquiring an additional 2,200 shares in the last quarter. XTX Topco Ltd purchased a new stake in Credit Acceptance during the 2nd quarter worth $876,000. Greenline Partners LLC raised its holdings in shares of Credit Acceptance by 811.9% during the 2nd quarter. Greenline Partners LLC now owns 5,116 shares of the credit services provider’s stock valued at $2,646,000 after buying an additional 4,555 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its holdings in Credit Acceptance by 137,050.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,743 shares of the credit services provider’s stock worth $1,412,000 after acquiring an additional 2,741 shares during the period. 81.71% of the stock is currently owned by institutional investors and hedge funds.

Credit Acceptance Company Profile

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.