Credit Acceptance (NASDAQ:CACC) Stock Price Passes Above 200-Day Moving Average – Time to Sell?

Shares of Credit Acceptance Corporation (NASDAQ:CACC) crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $476.00 and traded as high as $502.83. Credit Acceptance shares last traded at $501.53, with a volume of 310,886 shares.

Analyst Ratings Changes

Several analysts have weighed in on the company. Weiss Ratings reissued a “hold (c)” rating on shares of Credit Acceptance in a report on Wednesday, January 21st. Zacks Research raised Credit Acceptance from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, February 3rd. Finally, TD Cowen increased their price objective 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 issued a Hold rating to the stock. According to data from MarketBeat.com, Credit Acceptance has a consensus rating of “Moderate Buy” and a consensus target price of $470.00.

Credit Acceptance Trading Up 0.7%

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 business has a fifty day simple moving average of $477.25 and a 200 day simple moving average of $476.00. The stock has a market cap of $5.39 billion, a price-to-earnings ratio of 13.74 and a beta of 1.29.

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

Insider Buying and Selling at Credit Acceptance

In other Credit Acceptance news, CFO Jay D. Martin sold 4,340 shares of the company’s stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $512.55, for a total value of $2,224,467.00. Following the transaction, the chief financial officer directly owned 25,963 shares in the company, valued at approximately $13,307,335.65. This represents a 14.32% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Kenneth Booth sold 2,000 shares of the firm’s stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $508.00, for a total transaction of $1,016,000.00. Following the sale, the director directly owned 22,832 shares in the company, valued at $11,598,656. This represents a 8.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 11,576 shares of company stock worth $5,824,119. Corporate insiders own 6.60% of the company’s stock.

Institutional Trading of Credit Acceptance

A number of hedge funds have recently bought and sold shares of CACC. Royal Bank of Canada grew its stake in Credit Acceptance by 31.6% in the 1st quarter. Royal Bank of Canada now owns 1,916 shares of the credit services provider’s stock worth $989,000 after acquiring an additional 460 shares during the period. AQR Capital Management LLC boosted its holdings in shares of Credit Acceptance by 230.6% during the first quarter. AQR Capital Management LLC now owns 7,885 shares of the credit services provider’s stock worth $3,961,000 after purchasing an additional 5,500 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Credit Acceptance by 3.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 23,886 shares of the credit services provider’s stock worth $12,334,000 after purchasing an additional 900 shares during the last quarter. Police & Firemen s Retirement System of New Jersey grew its position in shares of Credit Acceptance by 13.7% in the second quarter. Police & Firemen s Retirement System of New Jersey now owns 2,593 shares of the credit services provider’s stock valued at $1,321,000 after purchasing an additional 312 shares during the period. Finally, SG Americas Securities LLC grew its position in shares of Credit Acceptance by 64.0% in the second quarter. SG Americas Securities LLC now owns 456 shares of the credit services provider’s stock valued at $232,000 after purchasing an additional 178 shares during the period. Institutional investors and hedge funds own 81.71% of the company’s stock.

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.