Credit Acceptance (NASDAQ:CACC) Shares Gap Down After Earnings Miss

Credit Acceptance Co. (NASDAQ:CACC)’s stock price gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $487.42, but opened at $461.00. Credit Acceptance shares last traded at $454.66, with a volume of 18,761 shares changing hands.

The credit services provider reported $9.35 EPS for the quarter, missing the consensus estimate of $10.31 by ($0.96). The company had revenue of $571.10 million for the quarter, compared to analyst estimates of $570.25 million. Credit Acceptance had a net margin of 11.46% and a return on equity of 29.01%. The firm’s quarterly revenue was up 12.4% on a year-over-year basis. During the same period in the previous year, the business posted $9.28 EPS.

Analyst Upgrades and Downgrades

CACC has been the topic of a number of recent research reports. StockNews.com upgraded Credit Acceptance from a “hold” rating to a “buy” rating in a research note on Friday, January 31st. Stephens lifted their price objective on Credit Acceptance from $452.00 to $500.00 and gave the stock an “equal weight” rating in a research note on Friday, January 31st.

Insider Transactions at Credit Acceptance

In other Credit Acceptance news, insider Douglas W. Busk sold 3,000 shares of the stock in a transaction dated Tuesday, March 25th. The stock was sold at an average price of $515.97, for a total value of $1,547,910.00. Following the completion of the sale, the insider now directly owns 3,112 shares in the company, valued at $1,605,698.64. This represents a 49.08 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Nicholas J. Elliott sold 300 shares of the firm’s stock in a transaction on Thursday, March 20th. The stock was sold at an average price of $502.00, for a total transaction of $150,600.00. Following the sale, the insider now owns 19,385 shares in the company, valued at approximately $9,731,270. The trade was a 1.52 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 5.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Credit Acceptance

Several institutional investors have recently bought and sold shares of the company. Gamco Investors INC. ET AL raised its holdings in shares of Credit Acceptance by 5.3% in the fourth quarter. Gamco Investors INC. ET AL now owns 2,185 shares of the credit services provider’s stock valued at $1,026,000 after purchasing an additional 110 shares during the last quarter. Bridgewater Associates LP increased its stake in Credit Acceptance by 268.2% in the 4th quarter. Bridgewater Associates LP now owns 8,354 shares of the credit services provider’s stock valued at $3,922,000 after buying an additional 6,085 shares during the last quarter. Park Avenue Securities LLC bought a new stake in Credit Acceptance during the 4th quarter worth about $680,000. Corient Private Wealth LLC boosted its stake in shares of Credit Acceptance by 7.2% during the 4th quarter. Corient Private Wealth LLC now owns 1,030 shares of the credit services provider’s stock worth $484,000 after buying an additional 69 shares during the last quarter. Finally, HighTower Advisors LLC grew its holdings in shares of Credit Acceptance by 67.6% in the 4th quarter. HighTower Advisors LLC now owns 997 shares of the credit services provider’s stock valued at $468,000 after acquiring an additional 402 shares in the last quarter. Institutional investors own 81.71% of the company’s stock.

Credit Acceptance Trading Up 4.4 %

The firm has a market cap of $5.74 billion, a price-to-earnings ratio of 24.60 and a beta of 1.27. The company has a debt-to-equity ratio of 3.63, a current ratio of 20.33 and a quick ratio of 20.33. The business has a 50-day moving average of $486.50 and a 200-day moving average of $481.98.

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.