Credit Acceptance (NASDAQ:CACC) Upgraded at Zacks Research

Zacks Research upgraded shares of Credit Acceptance (NASDAQ:CACC) from a hold rating to a strong-buy rating in a report published on Tuesday,Zacks.com reports.

CACC has been the topic of several other reports. Weiss Ratings reissued a “hold (c)” rating on shares of Credit Acceptance in a research report on Wednesday, January 21st. TD Cowen increased their target price on Credit Acceptance from $460.00 to $470.00 and gave the company a “hold” rating in a research note on Friday, January 30th. One investment analyst has rated the stock with a Strong Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $470.00.

Credit Acceptance Price Performance

Shares of CACC opened at $495.07 on Tuesday. The company has a debt-to-equity ratio of 3.94, a quick ratio of 15.81 and a current ratio of 15.81. The firm has a market cap of $5.46 billion, a PE ratio of 13.56 and a beta of 1.27. The firm’s 50 day moving average price is $463.60 and its 200 day moving average price is $474.86. Credit Acceptance has a twelve month low of $401.90 and a twelve month high of $549.75.

Credit Acceptance (NASDAQ:CACC) last posted its 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. The company had revenue of $408.20 million during the quarter, compared to the consensus estimate of $582.63 million. Credit Acceptance had a net margin of 18.29% and a return on equity of 28.46%. The company’s revenue for the quarter was up 2.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $10.17 earnings per share. As a group, research analysts expect that Credit Acceptance will post 53.24 EPS for the current fiscal year.

Insider Activity

In related news, insider Wendy A. Rummler sold 5,236 shares of the stock in a transaction dated Friday, January 30th. The shares were sold at an average price of $493.44, for a total transaction of $2,583,651.84. Following the completion of the sale, the insider owned 20,772 shares in the company, valued at $10,249,735.68. This trade represents a 20.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 6.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On Credit Acceptance

A number of large investors have recently bought and sold shares of the business. M&T Bank Corp bought a new stake in shares of Credit Acceptance during the fourth quarter worth $208,294,000. Boston Partners bought a new stake in shares of Credit Acceptance during the 3rd quarter valued at $206,327,000. Smead Capital Management Inc. grew its stake in shares of Credit Acceptance by 17.0% during the second quarter. Smead Capital Management Inc. now owns 216,811 shares of the credit services provider’s stock worth $110,450,000 after purchasing an additional 31,438 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH increased its holdings in Credit Acceptance by 764.8% in the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 203,879 shares of the credit services provider’s stock valued at $91,652,000 after purchasing an additional 180,304 shares during the last quarter. Finally, Dimensional Fund Advisors LP lifted its stake in Credit Acceptance by 4.4% in the third quarter. Dimensional Fund Advisors LP now owns 203,861 shares of the credit services provider’s stock valued at $95,171,000 after buying an additional 8,573 shares during the period. 81.71% of the stock is currently owned by institutional investors.

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.