Credit Acceptance (NASDAQ:CACC) Downgraded by StockNews.com to “Hold”

StockNews.com cut shares of Credit Acceptance (NASDAQ:CACC) from a buy rating to a hold rating in a research report sent to investors on Thursday.

Other equities research analysts have also issued research reports about the company. Stephens started coverage on Credit Acceptance in a research note on Wednesday, November 13th. They set an “equal weight” rating and a $452.00 price target on the stock. TD Cowen decreased their target price on Credit Acceptance from $400.00 to $380.00 and set a “sell” rating on the stock in a research report on Friday, November 1st.

Credit Acceptance Stock Up 3.7 %

Credit Acceptance stock opened at $524.14 on Thursday. The stock’s 50 day moving average price is $473.29 and its 200 day moving average price is $475.55. Credit Acceptance has a 1-year low of $409.22 and a 1-year high of $616.66. The company has a market cap of $6.35 billion, a PE ratio of 35.20 and a beta of 1.46. The company has a debt-to-equity ratio of 3.79, a current ratio of 23.63 and a quick ratio of 23.63.

Credit Acceptance (NASDAQ:CACC) last posted its quarterly earnings results on Wednesday, October 30th. The credit services provider reported $8.79 earnings per share for the quarter, topping analysts’ consensus estimates of $7.88 by $0.91. Credit Acceptance had a net margin of 9.08% and a return on equity of 29.18%. The business had revenue of $550.30 million for the quarter, compared to analysts’ expectations of $548.13 million. During the same period in the prior year, the company posted $10.70 EPS. The business’s revenue for the quarter was up 15.0% on a year-over-year basis. On average, sell-side analysts predict that Credit Acceptance will post 36.53 EPS for the current fiscal year.

Insider Buying and Selling at Credit Acceptance

In related news, COO Jonathan Lum sold 552 shares of the stock in a transaction on Tuesday, December 17th. The stock was sold at an average price of $489.90, for a total transaction of $270,424.80. Following the sale, the chief operating officer now owns 31,493 shares of the company’s stock, valued at $15,428,420.70. This trade represents a 1.72 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 5.30% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Abrams Bison Investments LLC lifted its stake in shares of Credit Acceptance by 30.5% during the third quarter. Abrams Bison Investments LLC now owns 228,306 shares of the credit services provider’s stock valued at $101,235,000 after buying an additional 53,306 shares during the period. Charles Schwab Investment Management Inc. lifted its stake in shares of Credit Acceptance by 24.5% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 94,051 shares of the credit services provider’s stock worth $41,704,000 after purchasing an additional 18,530 shares during the period. MIG Capital LLC boosted its holdings in shares of Credit Acceptance by 18.7% during the third quarter. MIG Capital LLC now owns 116,491 shares of the credit services provider’s stock worth $51,654,000 after purchasing an additional 18,351 shares during the last quarter. Smead Capital Management Inc. grew its position in shares of Credit Acceptance by 3.5% in the third quarter. Smead Capital Management Inc. now owns 207,828 shares of the credit services provider’s stock valued at $92,155,000 after purchasing an additional 7,012 shares during the period. Finally, Oddo BHF Asset Management Sas acquired a new position in Credit Acceptance in the third quarter valued at $3,020,000. 81.71% of the stock is currently owned by hedge funds and other institutional investors.

Credit Acceptance Company Profile

Credit Acceptance Corporation engages in the provision of financing programs, and related products and services in the United States. The company advances money to automobile dealers in exchange for the right to service the underlying consumer loans; and buys the consumer loans from the dealers and keeps the amount collected from the consumers.