Alfreton Capital LLP Cuts Holdings in Credit Acceptance Corporation $CACC

Alfreton Capital LLP reduced its stake in shares of Credit Acceptance Corporation (NASDAQ:CACC) by 11.5% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 115,000 shares of the credit services provider’s stock after selling 15,000 shares during the quarter. Credit Acceptance makes up about 15.8% of Alfreton Capital LLP’s holdings, making the stock its 4th biggest holding. Alfreton Capital LLP owned about 1.10% of Credit Acceptance worth $48,698,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also recently modified their holdings of CACC. State of Wyoming bought a new position in Credit Acceptance in the fourth quarter worth $27,000. Kestra Advisory Services LLC purchased a new position in shares of Credit Acceptance in the 4th quarter worth about $27,000. Parallel Advisors LLC boosted its stake in Credit Acceptance by 590.0% in the 1st quarter. Parallel Advisors LLC now owns 69 shares of the credit services provider’s stock worth $29,000 after purchasing an additional 59 shares in the last quarter. Rockefeller Capital Management L.P. boosted its stake in 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 in the last quarter. Finally, Allworth Financial LP raised its holdings in 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 acquiring an additional 61 shares during the last quarter. Institutional investors own 81.71% of the company’s stock.

Insider Activity

In related news, CFO Jay D. Martin sold 3,000 shares of Credit Acceptance stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $601.04, for a total value of $1,803,120.00. Following the completion of the sale, the chief financial officer directly owned 25,963 shares in the company, valued at $15,604,801.52. The trade was a 10.36% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Erin J. Kerber sold 8,656 shares of the business’s stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $600.94, for a total transaction of $5,201,736.64. Following the completion of the transaction, the insider directly owned 25,711 shares of the company’s stock, valued at $15,450,768.34. This trade represents a 25.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 47,304 shares of company stock valued at $29,186,331. Company insiders own 6.10% of the company’s stock.

Wall Street Analyst Weigh In

CACC has been the topic of a number of research analyst reports. TD Cowen increased their price objective on shares of Credit Acceptance from $500.00 to $575.00 and gave the company a “hold” rating in a research report on Tuesday, July 7th. Weiss Ratings raised Credit Acceptance from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, July 16th. Zacks Research lowered shares of Credit Acceptance from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 13th. Finally, Stephens increased their target price on shares of Credit Acceptance from $450.00 to $540.00 and gave the stock an “equal weight” rating in a report on Friday, April 17th. One research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $557.50.

Credit Acceptance Price Performance

Shares of CACC stock opened at $592.57 on Friday. The firm has a market capitalization of $6.20 billion, a P/E ratio of 14.73 and a beta of 1.36. Credit Acceptance Corporation has a 52-week low of $401.90 and a 52-week high of $668.86. The company has a debt-to-equity ratio of 4.09, a quick ratio of 13.62 and a current ratio of 13.62. The stock has a 50 day moving average price of $590.08 and a 200 day moving average price of $519.14.

Credit Acceptance (NASDAQ:CACC) last posted its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $10.71 EPS for the quarter, missing the consensus estimate of $10.73 by ($0.02). The company had revenue of $406.00 million during the quarter, compared to analysts’ expectations of $580.77 million. Credit Acceptance had a return on equity of 29.95% and a net margin of 19.49%.The company’s quarterly revenue was up 1.6% on a year-over-year basis. During the same period in the prior year, the business earned $9.35 EPS. As a group, sell-side analysts predict that Credit Acceptance Corporation will post 47.5 earnings per share for the current year.

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.