Credit Acceptance (NASDAQ:CACC) Shares Gap Up Following Better-Than-Expected Earnings

Shares of Credit Acceptance Co. (NASDAQ:CACC) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $514.06, but opened at $550.00. Credit Acceptance shares last traded at $534.78, with a volume of 12,896 shares.

The credit services provider reported $10.17 earnings per share for the quarter, topping analysts’ consensus estimates of $7.70 by $2.47. Credit Acceptance had a net margin of 9.08% and a return on equity of 29.18%.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. Stephens upped their target price on shares of Credit Acceptance from $452.00 to $500.00 and gave the stock an “equal weight” rating in a research note on Friday. TD Cowen cut 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. Finally, StockNews.com raised Credit Acceptance from a “hold” rating to a “buy” rating in a report on Friday.

Insider Buying and Selling at Credit Acceptance

In other news, COO Jonathan Lum sold 552 shares of the business’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 value of $270,424.80. Following the transaction, the chief operating officer now owns 31,493 shares in the company, valued at approximately $15,428,420.70. The trade was a 1.72 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 5.30% of the company’s stock.

Institutional Investors Weigh In On Credit Acceptance

Several hedge funds and other institutional investors have recently bought and sold shares of CACC. HighTower Advisors LLC grew its position in Credit Acceptance by 5.7% in the 3rd quarter. HighTower Advisors LLC now owns 595 shares of the credit services provider’s stock worth $263,000 after purchasing an additional 32 shares in the last quarter. Eagle Bay Advisors LLC purchased a new position in Credit Acceptance during the fourth quarter worth about $28,000. Wedge Capital Management L L P NC increased its stake in Credit Acceptance by 2.7% in the 4th quarter. Wedge Capital Management L L P NC now owns 2,687 shares of the credit services provider’s stock worth $1,261,000 after acquiring an additional 70 shares during the last quarter. UMB Bank n.a. raised its holdings in shares of Credit Acceptance by 10.7% in the 4th quarter. UMB Bank n.a. now owns 743 shares of the credit services provider’s stock valued at $349,000 after acquiring an additional 72 shares in the last quarter. Finally, PDT Partners LLC boosted its position in shares of Credit Acceptance by 1.9% during the 3rd quarter. PDT Partners LLC now owns 5,458 shares of the credit services provider’s stock valued at $2,420,000 after acquiring an additional 100 shares during the last quarter. 81.71% of the stock is owned by institutional investors.

Credit Acceptance Trading Down 1.2 %

The company has a debt-to-equity ratio of 3.79, a quick ratio of 23.63 and a current ratio of 23.63. The stock has a 50-day moving average price of $483.00 and a 200-day moving average price of $473.67. The stock has a market cap of $6.15 billion, a P/E ratio of 34.10 and a beta of 1.46.

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.