Credit Acceptance (NASDAQ:CACC) Stock Price Target Lowered at TD Cowen

Key Points

• TD Cowen lowered Credit Acceptance’s price target from $600 to $590 while maintaining a “hold” rating, implying roughly 10.87% upside from the stock’s reported $532.16 price.
• Analyst sentiment remains cautious: one analyst rates the stock a Buy and three rate it Hold, producing a consensus “Hold” rating and an average price target of $565. Weiss Ratings separately upgraded the company to “buy.”
• Credit Acceptance reported quarterly EPS of $12.12, slightly below the $12.20 consensus estimate, while revenue of $415 million fell well short of the $588.07 million estimate. Institutional investors own approximately 81.71% of the company’s shares.

Credit Acceptance (NASDAQ:CACC - Get Free Report) had its target price lowered by analysts at TD Cowen from $600.00 to $590.00 in a research note issued to investors on Tuesday, Benzinga reports. The brokerage presently has a "hold" rating on the credit services provider's stock. TD Cowen's price target indicates a potential upside of 10.87% from the stock's current price.

Separately, Weiss Ratings upgraded Credit Acceptance from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, July 16th. One research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, Credit Acceptance currently has an average rating of "Hold" and a consensus price target of $565.00.

Credit Acceptance Price Performance

Shares of CACC stock traded up $0.81 on Tuesday, reaching $532.16. The company's stock had a trading volume of 9,706 shares, compared to its average volume of 167,943. The company has a quick ratio of 14.89, a current ratio of 14.89 and a debt-to-equity ratio of 3.84. Credit Acceptance has a 12-month low of $401.90 and a 12-month high of $668.86. The company has a market capitalization of $5.57 billion, a P/E ratio of 11.70 and a beta of 1.40. The stock's 50 day simple moving average is $578.67 and its 200-day simple moving average is $555.37.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The credit services provider reported $12.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $12.20 by ($0.08). The business had revenue of $415.00 million for the quarter, compared to the consensus estimate of $588.07 million. Credit Acceptance had a net margin of 21.54% and a return on equity of 31.67%. Credit Acceptance's quarterly revenue was up .6% on a year-over-year basis. During the same period in the prior year, the business posted $10.05 EPS. As a group, equities analysts predict that Credit Acceptance will post 47.8 earnings per share for the current fiscal year.

Institutional Trading of Credit Acceptance

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Versant Capital Management Inc lifted its holdings in shares of Credit Acceptance by 45.5% during the 3rd quarter. Versant Capital Management Inc now owns 80 shares of the credit services provider's stock worth $42,000 after acquiring an additional 25 shares during the last quarter. Sequoia Financial Advisors LLC increased its stake in Credit Acceptance by 1.2% in the second quarter. Sequoia Financial Advisors LLC now owns 8,994 shares of the credit services provider's stock valued at $5,727,000 after acquiring an additional 111 shares during the last quarter. WINTON GROUP Ltd purchased a new stake in Credit Acceptance during the second quarter valued at about $1,527,000. Integrated Wealth Concepts LLC purchased a new stake in Credit Acceptance during the second quarter valued at about $38,000. Finally, Allworth Financial LP raised its position in Credit Acceptance by 105.3% during the second quarter. Allworth Financial LP now owns 156 shares of the credit services provider's stock valued at $99,000 after purchasing an additional 80 shares in the last quarter. Hedge funds and other institutional investors own 81.71% of the company's stock.

Credit Acceptance Company Profile

Credit Acceptance Corporation NASDAQ: CACC is a specialty finance company that provides automobile financing to consumers, including borrowers who may have limited or impaired credit histories. The company primarily operates through an indirect lending model, partnering with automobile dealers who offer financing to their customers at the point of sale.

Credit Acceptance purchases or services retail installment contracts originated by participating dealers and provides dealers with financing programs, underwriting support, loan servicing, and related tools.

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.