Credit Acceptance (NASDAQ:CACC) Price Target Cut to $470.00 by Analysts at TD Cowen

Key Points

• TD Cowen cut Credit Acceptance’s price target to $470 from $590 and maintained a “Hold” rating, implying only about 1.3% upside from the stock’s current price.
• Credit Acceptance shares fell 19.4% to $463.98. The company beat third-quarter adjusted EPS expectations, but revenue came in slightly below consensus and it reported a $56.6 million GAAP net loss.
• Legal risk increased after Block & Leviton announced an investigation into potential securities-law violations, while institutional investors own approximately 81.7% of the company’s shares.

Credit Acceptance (NASDAQ:CACC - Get Free Report) had its target price lowered by research analysts at TD Cowen from $590.00 to $470.00 in a research note issued to investors on Friday, Benzinga reports. The firm presently has a "hold" rating on the credit services provider's stock. TD Cowen's price objective suggests a potential upside of 1.30% from the stock's current price.

Separately, Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Credit Acceptance in a research report on Wednesday, October 14th. One research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average target price of $505.00.

Credit Acceptance Trading Down 19.4%

NASDAQ CACC traded down $111.80 on Friday, hitting $463.98. The company's stock had a trading volume of 280,958 shares, compared to its average volume of 160,997. The firm has a market cap of $4.85 billion, a P/E ratio of 10.25 and a beta of 1.40. Credit Acceptance has a 52-week low of $401.90 and a 52-week high of $668.86. The company's 50-day simple moving average is $566.72 and its 200 day simple moving average is $537.43. The company has a current ratio of 14.89, a quick ratio of 14.89 and a debt-to-equity ratio of 3.84.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last posted its quarterly earnings data on Thursday, October 29th. The credit services provider reported $13.01 earnings per share for the quarter, beating the consensus estimate of $12.86 by $0.15. The business had revenue of $420.30 million for the quarter, compared to analysts' expectations of $596.40 million. Credit Acceptance had a return on equity of 31.67% and a net margin of 21.54%. The business's revenue was up 2.1% on a year-over-year basis. During the same period in the previous year, the firm posted $10.28 EPS. Research analysts predict that Credit Acceptance will post 47.64 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new stake in shares of Credit Acceptance in the second quarter worth about $408,849,000. Wellington Management Group LLP boosted its position in shares of Credit Acceptance by 0.5% during the 2nd quarter. Wellington Management Group LLP now owns 260,084 shares of the credit services provider's stock valued at $165,606,000 after acquiring an additional 1,186 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Credit Acceptance by 3.1% in the first quarter. Dimensional Fund Advisors LP now owns 230,715 shares of the credit services provider's stock valued at $97,701,000 after purchasing an additional 6,843 shares in the last quarter. Goodnow Investment Group LLC bought a new stake in Credit Acceptance in the second quarter worth $67,578,000. Finally, Bank of America Corp DE bought a new stake in Credit Acceptance in the second quarter worth $34,131,000. Institutional investors own 81.71% of the company's stock.

Key Headlines Impacting Credit Acceptance

Here are the key news stories impacting Credit Acceptance this week:

• Positive Sentiment: Third-quarter adjusted earnings increased to $13.01 per diluted share from $10.28 a year earlier, exceeding the $12.86 analyst consensus. Adjusted net income rose to $135.5 million, while the company reported record dealer participation. Credit Acceptance Announces Third Quarter 2026 Results
• Neutral Sentiment: Third-quarter revenue rose 2.1% year over year to approximately $594.6 million, but fell slightly short of the roughly $596.4 million consensus estimate. The company’s outlook or forecast change may limit the benefit from the earnings beat. Credit Acceptance Q3 Revenue Earnings Flash
• Negative Sentiment: Credit Acceptance reported a $56.6 million GAAP net loss, or $5.43 per share, versus $108.2 million of net income a year earlier. The sharp gap between GAAP and adjusted results could raise concerns about unusual charges and earnings quality. Credit Acceptance Announces Third Quarter 2026 Results
• Negative Sentiment: Block & Leviton said it is investigating Credit Acceptance for potential securities-law violations and is soliciting investors who suffered losses. Although an investigation is not a finding of wrongdoing, the announcement adds legal and reputational risk and is likely the most immediate pressure on CACC shares. CACC Securities-Fraud Investigation Alert

About Credit Acceptance

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.

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