Stephens Forecasts Strong Price Appreciation for Credit Acceptance (NASDAQ:CACC) Stock

Credit Acceptance (NASDAQ:CACC) had its target price boosted by equities researchers at Stephens from $450.00 to $540.00 in a research note issued to investors on Friday, Marketbeat.com reports. The firm presently has an “equal weight” rating on the credit services provider’s stock. Stephens’ target price points to a potential upside of 2.36% from the company’s previous close.

CACC has been the subject of a number of other research reports. TD Cowen lifted their target price on Credit Acceptance from $460.00 to $470.00 and gave the stock a “hold” rating in a report on Friday, January 30th. Zacks Research raised Credit Acceptance from a “hold” rating to a “strong-buy” rating in a report on Tuesday, February 3rd. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Credit Acceptance in a report on Wednesday, January 21st. One equities research analyst has rated the stock with a Strong Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $505.00.

Credit Acceptance Price Performance

Shares of CACC stock opened at $527.56 on Friday. Credit Acceptance has a fifty-two week low of $401.90 and a fifty-two week high of $549.75. The firm has a market capitalization of $5.67 billion, a price-to-earnings ratio of 14.45 and a beta of 1.32. The company has a debt-to-equity ratio of 4.10, a quick ratio of 16.91 and a current ratio of 16.91. The stock’s 50-day simple moving average is $471.95 and its 200-day simple moving average is $467.03.

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

Insider Buying and Selling at Credit Acceptance

In other Credit Acceptance news, Director Kenneth Booth sold 2,000 shares of the business’s stock in a transaction that occurred on 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 of the company’s stock, valued at approximately $11,598,656. The trade was a 8.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Wendy A. Rummler sold 5,236 shares of the business’s stock in a transaction that occurred on Friday, January 30th. The shares were sold at an average price of $493.44, for a total value of $2,583,651.84. Following the completion of the transaction, the insider directly owned 20,772 shares of the company’s stock, valued at $10,249,735.68. The trade was a 20.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 11,576 shares of company stock valued at $5,824,119. 6.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. Global Retirement Partners LLC raised its stake in shares of Credit Acceptance by 2.7% during the 3rd quarter. Global Retirement Partners LLC now owns 882 shares of the credit services provider’s stock worth $412,000 after buying an additional 23 shares during the period. Rockefeller Capital Management L.P. raised its stake in shares of Credit Acceptance by 53.3% during the 4th quarter. Rockefeller Capital Management L.P. now owns 69 shares of the credit services provider’s stock worth $31,000 after buying an additional 24 shares during the period. Janney Montgomery Scott LLC raised its stake in shares of Credit Acceptance by 4.6% during the 4th quarter. Janney Montgomery Scott LLC now owns 571 shares of the credit services provider’s stock worth $253,000 after buying an additional 25 shares during the period. Cetera Investment Advisers raised its stake in shares of Credit Acceptance by 6.3% during the 4th quarter. Cetera Investment Advisers now owns 508 shares of the credit services provider’s stock worth $225,000 after buying an additional 30 shares during the period. Finally, Russell Investments Group Ltd. raised its stake in shares of Credit Acceptance by 5.3% during the 3rd quarter. Russell Investments Group Ltd. now owns 721 shares of the credit services provider’s stock worth $337,000 after buying an additional 36 shares during the period. 81.71% of the stock is owned by institutional investors and hedge funds.

About Credit Acceptance

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.