Credit Acceptance (NASDAQ:CACC) COO Jonathan Lum Sells 3,000 Shares

Credit Acceptance Corporation (NASDAQ:CACC) COO Jonathan Lum sold 3,000 shares of the firm’s stock in a transaction on Monday, April 20th. The stock was sold at an average price of $535.00, for a total transaction of $1,605,000.00. Following the completion of the sale, the chief operating officer owned 31,609 shares in the company, valued at approximately $16,910,815. The trade was a 8.67% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Credit Acceptance Stock Performance

CACC traded up $5.53 during trading on Wednesday, reaching $526.76. 102,990 shares of the company’s stock were exchanged, compared to its average volume of 203,771. Credit Acceptance Corporation has a fifty-two week low of $401.90 and a fifty-two week high of $549.75. The company has a quick ratio of 16.91, a current ratio of 16.91 and a debt-to-equity ratio of 4.10. The business has a 50 day moving average price of $473.01 and a 200 day moving average price of $467.64. The company has a market capitalization of $5.66 billion, a P/E ratio of 14.43 and a beta of 1.32.

Credit Acceptance (NASDAQ:CACC) last posted its quarterly earnings results on Thursday, January 29th. The credit services provider reported $11.35 earnings per share for the quarter, topping analysts’ consensus estimates of $10.30 by $1.05. Credit Acceptance had a net margin of 18.29% and a return on equity of 28.86%. The firm had revenue of $408.20 million for the quarter, compared to the consensus estimate of $582.63 million. During the same quarter in the previous year, the company earned $10.17 earnings per share. The business’s revenue was up 2.5% compared to the same quarter last year. As a group, analysts predict that Credit Acceptance Corporation will post 47 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Credit Acceptance

Large investors have recently made changes to their positions in the company. State of Wyoming bought a new stake in shares of Credit Acceptance in the 4th quarter worth about $27,000. Kestra Advisory Services LLC bought a new stake in shares of Credit Acceptance in the 4th quarter worth about $27,000. Rockefeller Capital Management L.P. grew its holdings in shares of Credit Acceptance by 53.3% in the 4th quarter. Rockefeller Capital Management L.P. now owns 69 shares of the credit services provider’s stock worth $31,000 after purchasing an additional 24 shares during the last quarter. Allworth Financial LP grew its holdings in shares of Credit Acceptance by 141.9% in the 3rd quarter. Allworth Financial LP now owns 104 shares of the credit services provider’s stock worth $49,000 after purchasing an additional 61 shares during the last quarter. Finally, Vestcor Inc bought a new stake in shares of Credit Acceptance in the 3rd quarter worth about $50,000. Institutional investors own 81.71% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on CACC shares. TD Cowen lifted their price target on shares of Credit Acceptance from $460.00 to $470.00 and gave the stock a “hold” rating in a research note on Friday, January 30th. Weiss Ratings reiterated a “hold (c)” rating on shares of Credit Acceptance in a research note on Monday. Stephens lifted their price target on shares of Credit Acceptance from $450.00 to $540.00 and gave the stock an “equal weight” rating in a research note on Friday, April 17th. Finally, Zacks Research upgraded shares of Credit Acceptance from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, February 3rd. One research analyst has rated the stock with a Strong Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $505.00.

Credit Acceptance Company Profile

Credit Acceptance Corporation, founded in 1972 and headquartered in Southfield, Michigan, is a specialty finance company focused on the indirect automotive lending market. The company partners with independent and franchised auto dealers to facilitate purchase financing for consumers who may not qualify for traditional prime auto loans. By purchasing retail installment contracts originated by these dealers, Credit Acceptance provides capital and credit insurance to support vehicle sales, enabling dealers to broaden their customer base and reduce credit risk.

Through its proprietary underwriting platform and risk management strategies, Credit Acceptance evaluates borrower applications, structures credit plans, and retains servicing rights on the acquired contracts.