Stephens Initiates Coverage on Credit Acceptance (NASDAQ:CACC)

Equities research analysts at Stephens assumed coverage on shares of Credit Acceptance (NASDAQ:CACC) in a research report issued on Wednesday, Marketbeat Ratings reports. The brokerage set an “equal weight” rating and a $452.00 price target on the credit services provider’s stock. Stephens’ price target indicates a potential upside of 2.32% from the stock’s previous close.

A number of other research firms also recently issued reports on CACC. TD Cowen reduced their price target on shares of Credit Acceptance from $400.00 to $380.00 and set a “sell” rating on the stock in a research note on Friday, November 1st. StockNews.com raised Credit Acceptance from a “hold” rating to a “buy” rating in a research report on Tuesday.

Credit Acceptance Price Performance

CACC stock opened at $441.77 on Wednesday. Credit Acceptance has a 52-week low of $409.22 and a 52-week high of $616.66. The company has a quick ratio of 23.63, a current ratio of 23.63 and a debt-to-equity ratio of 3.79. The stock has a market cap of $5.35 billion, a price-to-earnings ratio of 29.67 and a beta of 1.42. The business has a fifty day moving average of $449.10 and a two-hundred day moving average of $483.71.

Credit Acceptance (NASDAQ:CACC) last issued its quarterly earnings data on Wednesday, October 30th. The credit services provider reported $8.79 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $7.88 by $0.91. The firm had revenue of $550.30 million during the quarter, compared to the consensus estimate of $548.13 million. Credit Acceptance had a return on equity of 29.18% and a net margin of 9.08%. The company’s quarterly revenue was up 15.0% on a year-over-year basis. During the same period last year, the company earned $10.70 EPS. As a group, research analysts anticipate that Credit Acceptance will post 37.14 earnings per share for the current year.

Insider Transactions at Credit Acceptance

In other news, insider Thomas W. Smith sold 1,200 shares of the company’s stock in a transaction on Monday, September 9th. The stock was sold at an average price of $451.01, for a total transaction of $541,212.00. Following the sale, the insider now owns 74,450 shares of the company’s stock, valued at approximately $33,577,694.50. This represents a 1.59 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 5.30% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Janney Montgomery Scott LLC boosted its stake in shares of Credit Acceptance by 27.9% in the 1st quarter. Janney Montgomery Scott LLC now owns 573 shares of the credit services provider’s stock valued at $316,000 after buying an additional 125 shares during the period. Russell Investments Group Ltd. lifted its stake in Credit Acceptance by 821.9% in the first quarter. Russell Investments Group Ltd. now owns 3,282 shares of the credit services provider’s stock worth $1,810,000 after acquiring an additional 2,926 shares during the last quarter. Entropy Technologies LP acquired a new position in Credit Acceptance during the 1st quarter worth approximately $771,000. Edgestream Partners L.P. purchased a new stake in shares of Credit Acceptance in the 1st quarter valued at approximately $1,494,000. Finally, CANADA LIFE ASSURANCE Co raised its holdings in shares of Credit Acceptance by 3.4% in the 1st quarter. CANADA LIFE ASSURANCE Co now owns 2,161 shares of the credit services provider’s stock valued at $1,191,000 after purchasing an additional 72 shares in the last quarter. 81.71% of the stock is owned by institutional investors and hedge funds.

About Credit Acceptance

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.