Credit Acceptance (NASDAQ:CACC) Downgraded by Zacks Research to "Strong Sell"

Key Points

• Zacks Research downgraded Credit Acceptance from “hold” to “strong sell.” Other analysts also turned more cautious, leaving the stock with a consensus “Reduce” rating and a $505 average target price.
• Credit Acceptance beat quarterly EPS expectations, reporting $13.01 per share versus $12.86 expected, while revenue rose 2.1% year over year to $420.3 million.
• Shares opened at $498.68 on Tuesday, and the article reported they were up 3.8%. Institutional investors own 81.71% of the stock.

Credit Acceptance (NASDAQ:CACC - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Tuesday, Zacks reports.

A number of other equities analysts also recently commented on CACC. Weiss Ratings downgraded Credit Acceptance from a "buy (b-)" rating to a "hold (c)" rating in a report on Monday. TD Cowen reduced their price objective on shares of Credit Acceptance from $590.00 to $470.00 and set a "hold" rating on the stock in a research report on Friday, October 30th. Three research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus target price of $505.00.

Credit Acceptance Stock Up 3.8%

Shares of NASDAQ:CACC opened at $498.68 on Tuesday. Credit Acceptance has a 1 year low of $401.90 and a 1 year high of $668.86. The company has a market cap of $5.06 billion, a PE ratio of 10.19 and a beta of 1.45. The company has a debt-to-equity ratio of 4.68, a current ratio of 13.49 and a quick ratio of 13.49. The stock's 50-day moving average is $557.42 and its 200 day moving average is $537.69.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The credit services provider reported $13.01 earnings per share for the quarter, topping the consensus estimate of $12.86 by $0.15. The business had revenue of $420.30 million during the quarter, compared to analysts' expectations of $596.40 million. Credit Acceptance had a return on equity of 33.84% and a net margin of 14.39%. The business's revenue was up 2.1% on a year-over-year basis. During the same quarter last year, the business posted $10.28 EPS. Sell-side analysts anticipate that Credit Acceptance will post 47.61 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in CACC. BlackRock Inc. purchased a new position in Credit Acceptance during the 2nd quarter valued at about $408,849,000. Goodnow Investment Group LLC purchased a new stake in Credit Acceptance in the second quarter worth about $67,578,000. Renaissance Technologies LLC grew its holdings in Credit Acceptance by 1,078.0% in the first quarter. Renaissance Technologies LLC now owns 63,468 shares of the credit services provider's stock worth $26,876,000 after purchasing an additional 58,080 shares during the period. Bank of America Corp DE purchased a new stake in Credit Acceptance in the second quarter worth about $34,131,000. Finally, Bank of New York Mellon Corp bought a new position in shares of Credit Acceptance during the second quarter valued at approximately $19,347,000. Institutional investors own 81.71% of the company's stock.

Credit Acceptance Company Profile

Credit Acceptance Corporation NASDAQ: CACC is a specialized automobile finance company that provides financing programs for consumers who may have difficulty obtaining credit through traditional lenders. The company primarily operates through an indirect lending model, working with automobile dealers who offer financing to customers purchasing new or used vehicles.

Credit Acceptance purchases or services automotive loans originated through its dealer-partner network. Its programs are designed to help dealers sell vehicles to a broader range of consumers, while the company manages loan underwriting, servicing, collections, and related risk-management activities.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.