Credit Acceptance (NASDAQ:CACC) Stock Price Down 5.5% – Should You Sell?

Credit Acceptance Corporation (NASDAQ:CACC) shares fell 5.5% during trading on Friday . The stock traded as low as $471.00 and last traded at $466.7340. 62,510 shares were traded during mid-day trading, a decline of 72% from the average session volume of 223,269 shares. The stock had previously closed at $494.00.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the stock. Zacks Research upgraded shares of Credit Acceptance from a “hold” rating to a “strong-buy” rating in a report on Tuesday, February 3rd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Credit Acceptance in a research note on Wednesday, January 21st. Finally, TD Cowen boosted their target price on shares of Credit Acceptance from $460.00 to $470.00 and gave the company a “hold” rating in a research note on Friday, January 30th. One equities research analyst has rated the stock with a Strong Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $470.00.

Credit Acceptance Stock Down 9.4%

The business has a fifty day moving average price of $480.24 and a two-hundred day moving average price of $475.47. The company has a current ratio of 16.91, a quick ratio of 16.91 and a debt-to-equity ratio of 4.10. The company has a market cap of $4.81 billion, a price-to-earnings ratio of 12.27 and a beta of 1.29.

Credit Acceptance (NASDAQ:CACC) last posted its quarterly earnings results on Thursday, January 29th. The credit services provider reported $11.35 EPS for the quarter, topping the consensus estimate of $10.30 by $1.05. Credit Acceptance had a net margin of 18.29% and a return on equity of 28.86%. The business had revenue of $408.20 million during the quarter, compared to analysts’ expectations of $582.63 million. During the same period last year, the company posted $10.17 earnings per share. The firm’s quarterly revenue was up 2.5% compared to the same quarter last year. On average, equities analysts predict that Credit Acceptance Corporation will post 53.24 earnings per share for the current year.

Insider Activity at Credit Acceptance

In other Credit Acceptance news, CFO Jay D. Martin sold 4,340 shares of the business’s stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $512.55, for a total value of $2,224,467.00. Following the transaction, the chief financial officer owned 25,963 shares in the company, valued at $13,307,335.65. The trade was a 14.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Kenneth Booth sold 2,000 shares of the company’s stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $508.00, for a total value of $1,016,000.00. Following the completion of the transaction, the director directly owned 22,832 shares in the company, valued at approximately $11,598,656. The trade was a 8.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 11,576 shares of company stock valued at $5,824,119. Insiders own 6.60% of the company’s stock.

Hedge Funds Weigh In On Credit Acceptance

Hedge funds have recently added to or reduced their stakes in the company. State of Wyoming acquired a new stake in Credit Acceptance in the fourth quarter valued at approximately $27,000. Kestra Advisory Services LLC bought a new stake in Credit Acceptance in the fourth quarter worth approximately $27,000. Allworth Financial LP increased its stake in shares of Credit Acceptance by 141.9% during 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. Vestcor Inc acquired a new position in shares of Credit Acceptance during the 3rd quarter worth $50,000. Finally, Covestor Ltd raised its holdings in shares of Credit Acceptance by 775.0% during the 4th quarter. Covestor Ltd now owns 175 shares of the credit services provider’s stock valued at $78,000 after purchasing an additional 155 shares in the last quarter. Institutional investors and hedge funds own 81.71% of the company’s stock.

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.