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

StockNews.com downgraded shares of Credit Acceptance (NASDAQ:CACC) from a buy rating to a hold rating in a report published on Tuesday morning.

A number of other brokerages also recently issued reports on CACC. TD Cowen lowered their price target on Credit Acceptance from $400.00 to $380.00 and set a “sell” rating on the stock in a report on Friday, November 1st. Stephens assumed coverage on shares of Credit Acceptance in a research note on Wednesday, November 13th. They set an “equal weight” rating and a $452.00 target price on the stock.

Credit Acceptance Stock Performance

Shares of Credit Acceptance stock opened at $466.28 on Tuesday. The stock has a market cap of $5.65 billion, a price-to-earnings ratio of 31.31 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 has a 1 year low of $409.22 and a 1 year high of $616.66. The firm’s 50-day moving average is $466.50 and its 200 day moving average is $478.16.

Credit Acceptance (NASDAQ:CACC) last announced its quarterly earnings results on Wednesday, October 30th. The credit services provider reported $8.79 earnings per share for the quarter, beating the consensus estimate of $7.88 by $0.91. The company had revenue of $550.30 million during the quarter, compared to the consensus estimate of $548.13 million. Credit Acceptance had a net margin of 9.08% and a return on equity of 29.18%. The firm’s quarterly revenue was up 15.0% compared to the same quarter last year. During the same quarter last year, the firm earned $10.70 earnings per share. Sell-side analysts anticipate that Credit Acceptance will post 36.54 EPS for the current fiscal year.

Insider Buying and Selling at Credit Acceptance

In other Credit Acceptance news, COO Jonathan Lum sold 552 shares of the business’s stock in a transaction dated Tuesday, December 17th. The stock was sold at an average price of $489.90, for a total transaction of $270,424.80. Following the completion of the sale, the chief operating officer now directly owns 31,493 shares in the company, valued at $15,428,420.70. The trade was a 1.72 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 5.30% of the company’s stock.

Hedge Funds Weigh In On Credit Acceptance

A number of institutional investors and hedge funds have recently made changes to their positions in CACC. HighTower Advisors LLC boosted its stake in shares of Credit Acceptance by 5.7% during the 3rd quarter. HighTower Advisors LLC now owns 595 shares of the credit services provider’s stock worth $263,000 after acquiring an additional 32 shares during the last quarter. PDT Partners LLC raised its holdings in Credit Acceptance by 1.9% in the 3rd quarter. PDT Partners LLC now owns 5,458 shares of the credit services provider’s stock worth $2,420,000 after purchasing an additional 100 shares during the period. Wedge Capital Management L L P NC lifted its position in Credit Acceptance by 4.2% during the third quarter. Wedge Capital Management L L P NC now owns 2,617 shares of the credit services provider’s stock valued at $1,160,000 after purchasing an additional 105 shares in the last quarter. Lountzis Asset Management LLC grew its holdings in Credit Acceptance by 22.3% during the third quarter. Lountzis Asset Management LLC now owns 598 shares of the credit services provider’s stock valued at $265,000 after purchasing an additional 109 shares during the period. Finally, JPMorgan Chase & Co. increased its position in Credit Acceptance by 3.0% in the third quarter. JPMorgan Chase & Co. now owns 4,082 shares of the credit services provider’s stock worth $1,810,000 after buying an additional 118 shares in the last quarter. Hedge funds and other institutional investors own 81.71% of the company’s stock.

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.