Credit Acceptance (NASDAQ:CACC) Lowered to Hold Rating by StockNews.com

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

A number of other brokerages have also recently weighed in on CACC. TD Cowen cut their price objective on shares of Credit Acceptance from $400.00 to $380.00 and set a “sell” rating on the stock in a research note on Friday, November 1st. Stephens assumed coverage on Credit Acceptance in a report on Wednesday, November 13th. They set an “equal weight” rating and a $452.00 target price on the stock.

Credit Acceptance Price Performance

Shares of NASDAQ CACC opened at $505.29 on Thursday. Credit Acceptance has a fifty-two week low of $409.22 and a fifty-two week high of $616.66. The firm’s 50-day simple moving average is $473.29 and its 200 day simple moving average is $475.55. 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 stock has a market cap of $6.12 billion, a P/E ratio of 33.93 and a beta of 1.46.

Credit Acceptance (NASDAQ:CACC) last issued its quarterly earnings data on Wednesday, October 30th. The credit services provider reported $8.79 earnings per share for the quarter, beating 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 analysts’ expectations of $548.13 million. During the same period in the previous year, the business earned $10.70 earnings per share. The company’s revenue was up 15.0% on a year-over-year basis. Equities analysts expect that Credit Acceptance will post 36.53 EPS for the current year.

Insider Buying and Selling

In related news, COO Jonathan Lum sold 552 shares of Credit Acceptance stock in a transaction dated Tuesday, December 17th. The stock was sold at an average price of $489.90, for a total value of $270,424.80. Following the transaction, the chief operating officer now owns 31,493 shares of the company’s stock, valued at approximately $15,428,420.70. This trade represents a 1.72 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 5.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Credit Acceptance

A number of institutional investors have recently bought and sold shares of CACC. Abrams Bison Investments LLC increased its stake in Credit Acceptance by 30.5% in the 3rd quarter. Abrams Bison Investments LLC now owns 228,306 shares of the credit services provider’s stock worth $101,235,000 after purchasing an additional 53,306 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its position in Credit Acceptance by 24.5% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 94,051 shares of the credit services provider’s stock worth $41,704,000 after acquiring an additional 18,530 shares during the period. MIG Capital LLC boosted its position in Credit Acceptance by 18.7% during the 3rd quarter. MIG Capital LLC now owns 116,491 shares of the credit services provider’s stock worth $51,654,000 after acquiring an additional 18,351 shares during the period. Smead Capital Management Inc. boosted its position in Credit Acceptance by 3.5% during the 3rd quarter. Smead Capital Management Inc. now owns 207,828 shares of the credit services provider’s stock worth $92,155,000 after acquiring an additional 7,012 shares during the period. Finally, Oddo BHF Asset Management Sas acquired a new stake in Credit Acceptance during the 3rd quarter worth about $3,020,000. Hedge funds and other institutional investors own 81.71% of the company’s stock.

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.