Credit Acceptance Co. (NASDAQ:CACC) Sees Large Growth in Short Interest

Credit Acceptance Co. (NASDAQ:CACC) saw a large increase in short interest during the month of May. As of May 31st, there was short interest totalling 659,800 shares, an increase of 8.0% from the May 15th total of 610,800 shares. Approximately 10.3% of the company’s stock are sold short. Based on an average daily volume of 52,800 shares, the days-to-cover ratio is currently 12.5 days.

Insider Transactions at Credit Acceptance

In other news, insider Douglas W. Busk sold 2,500 shares of the stock in a transaction on Thursday, March 21st. The shares were sold at an average price of $572.58, for a total transaction of $1,431,450.00. Following the transaction, the insider now owns 3,112 shares in the company, valued at approximately $1,781,868.96. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. 5.30% of the stock is currently owned by company insiders.

Institutional Trading of Credit Acceptance

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Virtu Financial LLC acquired a new stake in Credit Acceptance in the 1st quarter worth $1,655,000. Comerica Bank bought a new position in shares of Credit Acceptance during the 1st quarter worth about $365,000. Tidal Investments LLC bought a new position in shares of Credit Acceptance during the 1st quarter worth about $1,610,000. Redwood Investment Management LLC bought a new position in shares of Credit Acceptance during the 1st quarter worth about $1,512,000. Finally, Jacobs Levy Equity Management Inc. bought a new position in shares of Credit Acceptance during the 1st quarter worth about $662,000. 81.71% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research analysts have recently commented on CACC shares. TD Cowen dropped their price target on shares of Credit Acceptance from $465.00 to $420.00 and set a “sell” rating on the stock in a research note on Thursday, May 2nd. StockNews.com upgraded shares of Credit Acceptance from a “hold” rating to a “buy” rating in a research note on Wednesday, February 28th. One analyst has rated the stock with a sell rating, two have assigned a hold rating and one has given a buy rating to the company’s stock. Based on data from MarketBeat, Credit Acceptance currently has a consensus rating of “Hold” and an average target price of $402.33.

Credit Acceptance Stock Performance

NASDAQ:CACC opened at $482.54 on Wednesday. Credit Acceptance has a 1 year low of $379.77 and a 1 year high of $616.66. The firm’s fifty day simple moving average is $505.91 and its 200 day simple moving average is $526.25. The company has a current ratio of 13.79, a quick ratio of 13.79 and a debt-to-equity ratio of 3.29. The firm has a market capitalization of $5.84 billion, a PE ratio of 24.76 and a beta of 1.43.

Credit Acceptance (NASDAQ:CACC) last posted its earnings results on Tuesday, April 30th. The credit services provider reported $9.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $6.81 by $2.47. The business had revenue of $508.00 million for the quarter, compared to analyst estimates of $497.71 million. Credit Acceptance had a net margin of 12.83% and a return on equity of 30.70%. Credit Acceptance’s revenue was up 11.9% compared to the same quarter last year. During the same period last year, the business posted $9.71 EPS. On average, sell-side analysts anticipate that Credit Acceptance will post 42.37 EPS for the current year.

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.