Brokerages Set Credit Acceptance Co. (NASDAQ:CACC) Target Price at $389.00

Credit Acceptance Co. (NASDAQ:CACC) has received a consensus recommendation of “Reduce” from the three brokerages that are presently covering the stock, Marketbeat.com reports. One analyst has rated the stock with a sell rating and two have issued a hold rating on the company. The average 12-month price objective among brokers that have issued a report on the stock in the last year is $381.75.

Several research firms have weighed in on CACC. BMO Capital Markets dropped their price objective on Credit Acceptance from $354.00 to $347.00 and set a “market perform” rating for the company in a report on Tuesday. StockNews.com began coverage on Credit Acceptance in a report on Thursday, October 5th. They issued a “hold” rating for the company. TheStreet cut Credit Acceptance from a “b-” rating to a “c+” rating in a report on Thursday, August 10th. Stephens reiterated an “equal weight” rating and issued a $440.00 price objective on shares of Credit Acceptance in a report on Tuesday. Finally, TD Cowen began coverage on Credit Acceptance in a report on Wednesday. They issued an “underperform” rating and a $360.00 price objective for the company.

Credit Acceptance Trading Up 1.6 %

Shares of CACC stock opened at $443.35 on Wednesday. The stock has a market capitalization of $5.57 billion, a PE ratio of 18.24 and a beta of 1.38. Credit Acceptance has a 1-year low of $358.00 and a 1-year high of $576.05. The business has a 50-day moving average of $456.86 and a 200 day moving average of $479.00. The company has a debt-to-equity ratio of 2.84, a current ratio of 18.50 and a quick ratio of 16.47.

Credit Acceptance (NASDAQ:CACC) last issued its earnings results on Tuesday, August 1st. The credit services provider reported $10.69 earnings per share for the quarter, missing the consensus estimate of $10.81 by ($0.12). The company had revenue of $477.90 million for the quarter, compared to analysts’ expectations of $463.83 million. Credit Acceptance had a net margin of 17.11% and a return on equity of 33.12%. The company’s revenue was up 4.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned $13.92 earnings per share. As a group, sell-side analysts anticipate that Credit Acceptance will post 45.47 earnings per share for the current year.

Insider Transactions at Credit Acceptance

In other news, major shareholder A. Foss Irrevocable Tru Donald sold 7,270 shares of the stock in a transaction that occurred on Monday, August 14th. The stock was sold at an average price of $490.84, for a total value of $3,568,406.80. Following the completion of the transaction, the insider now owns 1,286,995 shares of the company’s stock, valued at approximately $631,708,625.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In related news, major shareholder A. Foss Irrevocable Tru Donald sold 7,270 shares of the firm’s stock in a transaction that occurred on Monday, August 14th. The stock was sold at an average price of $490.84, for a total transaction of $3,568,406.80. Following the completion of the transaction, the insider now owns 1,286,995 shares of the company’s stock, valued at approximately $631,708,625.80. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Thomas W. Smith sold 400 shares of the firm’s stock in a transaction that occurred on Wednesday, September 6th. The shares were sold at an average price of $494.71, for a total value of $197,884.00. Following the transaction, the insider now directly owns 75,650 shares of the company’s stock, valued at approximately $37,424,811.50. The disclosure for this sale can be found here. In the last quarter, insiders sold 20,220 shares of company stock valued at $10,045,240. Corporate insiders own 4.20% of the company’s stock.

Institutional Trading of Credit Acceptance

Several institutional investors have recently added to or reduced their stakes in CACC. Cerity Partners LLC purchased a new position in Credit Acceptance during the first quarter valued at $386,743,000. Bank of America Corp DE raised its holdings in Credit Acceptance by 236.5% during the first quarter. Bank of America Corp DE now owns 108,520 shares of the credit services provider’s stock valued at $47,319,000 after acquiring an additional 76,275 shares during the period. Goodnow Investment Group LLC raised its holdings in Credit Acceptance by 608.6% during the first quarter. Goodnow Investment Group LLC now owns 61,401 shares of the credit services provider’s stock valued at $26,773,000 after acquiring an additional 52,736 shares during the period. Jarislowsky Fraser Ltd raised its holdings in Credit Acceptance by 62.5% during the second quarter. Jarislowsky Fraser Ltd now owns 63,885 shares of the credit services provider’s stock valued at $32,449,000 after acquiring an additional 24,576 shares during the period. Finally, Quantum Capital Management LLC NJ raised its holdings in Credit Acceptance by 196.8% during the first quarter. Quantum Capital Management LLC NJ now owns 36,298 shares of the credit services provider’s stock valued at $15,827,000 after acquiring an additional 24,069 shares during the period. 66.15% of the stock is currently owned by hedge funds and other institutional investors.

About Credit Acceptance

Credit Acceptance Corporation engages in the provision of financing programs, and related products and services to independent and franchised automobile dealers 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.