Credit Acceptance (NASDAQ:CACC) Shares Gap Up Following Strong Earnings

Credit Acceptance Corporation (NASDAQ:CACC) gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $451.24, but opened at $485.00. Credit Acceptance shares last traded at $471.12, with a volume of 20,536 shares.

The credit services provider reported $11.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $10.30 by $1.05. The firm had revenue of $408.20 million for the quarter, compared to analyst estimates of $582.63 million. Credit Acceptance had a net margin of 18.29% and a return on equity of 28.46%. Credit Acceptance’s revenue was up 2.5% on a year-over-year basis. During the same period in the previous year, the firm earned $10.17 EPS.

Key Stories Impacting Credit Acceptance

Here are the key news stories impacting Credit Acceptance this week:

• Positive Sentiment: Q4 adjusted earnings beat expectations — Adjusted net income was $126.0M, or $11.35 per diluted share, and consolidated net income was reported at $122.0M ($10.99 GAAP), supporting the EPS beat that investors rewarded. Credit Acceptance Announces Fourth Quarter 2025 Results
• Positive Sentiment: Management outlined a “digital-first” growth plan intended to stabilize and grow loan volumes and market share — a strategic signal that management is focused on scaling origination channels and improving unit economics. Credit Acceptance outlines digital-first growth plan as loan volumes and market share stabilize
• Neutral Sentiment: Full earnings-call transcript posted — investors can review management’s commentary on reserve build, expense drivers, origination trends and capital allocation for more detail; this reduces information uncertainty but does not itself change fundamentals. Credit Acceptance Corporation (CACC) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Revenue growth was modest and expenses/provisions rose year‑over‑year — while EPS beat, revenue was only up ~2.5% YoY and the company flagged higher expenses and provisions, which cap near-term margin expansion and could pressure forward earnings if trends continue. CACC Up on Q4 Earnings Beat Despite Y/Y Rise in Expenses, Provisions

Analyst Ratings Changes

CACC has been the subject of a number of research analyst reports. TD Cowen increased their price objective on shares of Credit Acceptance from $460.00 to $470.00 and gave the stock a “hold” rating in a research report on Friday. Weiss Ratings restated a “hold (c)” rating on shares of Credit Acceptance in a research note on Wednesday, January 21st. Two equities research analysts have rated the stock with a Hold rating, According to MarketBeat.com, Credit Acceptance currently has a consensus rating of “Hold” and a consensus target price of $470.00.

Hedge Funds Weigh In On Credit Acceptance

Institutional investors have recently modified their holdings of the business. Universal Beteiligungs und Servicegesellschaft mbH boosted its holdings in Credit Acceptance by 16.9% in the third quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 23,575 shares of the credit services provider’s stock valued at $11,008,000 after purchasing an additional 3,400 shares during the period. Envestnet Asset Management Inc. increased its holdings in Credit Acceptance by 6.8% during the 2nd quarter. Envestnet Asset Management Inc. now owns 32,407 shares of the credit services provider’s stock worth $16,509,000 after purchasing an additional 2,056 shares during the period. SG Americas Securities LLC raised its position in Credit Acceptance by 430.3% in the 3rd quarter. SG Americas Securities LLC now owns 2,418 shares of the credit services provider’s stock valued at $1,129,000 after purchasing an additional 1,962 shares in the last quarter. KLP Kapitalforvaltning AS raised its position in Credit Acceptance by 7.7% in the 2nd quarter. KLP Kapitalforvaltning AS now owns 1,400 shares of the credit services provider’s stock valued at $713,000 after purchasing an additional 100 shares in the last quarter. Finally, Envestnet Portfolio Solutions Inc. boosted its stake in shares of Credit Acceptance by 9.8% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 818 shares of the credit services provider’s stock valued at $417,000 after buying an additional 73 shares during the period. Institutional investors and hedge funds own 81.71% of the company’s stock.

Credit Acceptance Stock Performance

The stock has a 50-day moving average price of $459.19 and a 200 day moving average price of $474.84. The company has a quick ratio of 15.81, a current ratio of 15.81 and a debt-to-equity ratio of 3.94. The firm has a market capitalization of $5.50 billion, a price-to-earnings ratio of 13.65 and a beta of 1.24.

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.