Credit Acceptance (NASDAQ:CACC) Releases Earnings Results, Misses Expectations By $1.28 EPS

Key Points

• Credit Acceptance reported $8.56 earnings per share, falling short of analyst expectations of $9.84 while achieving a revenue of $583.80 million, exceeding the estimated $583.30 million.
• During the previous year, the company earned $10.29 earnings per share, representing a decline of approximately 16.8% year-on-year.
• Insider Daniel A. Ulatowski sold 6,356 shares, marking an 18.35% decrease in his position, while overall, insiders have sold 26,731 shares valued at over $14 million in the last three months.

Credit Acceptance (NASDAQ:CACC - Get Free Report) released its quarterly earnings data on Thursday. The credit services provider reported $8.56 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $9.84 by ($1.28), Zacks reports. Credit Acceptance had a net margin of 18.69% and a return on equity of 27.06%. The company had revenue of $583.80 million for the quarter, compared to analyst estimates of $583.30 million. During the same quarter in the prior year, the firm earned $10.29 EPS. The company's revenue for the quarter was up 8.5% compared to the same quarter last year.

Credit Acceptance Stock Performance

NASDAQ:CACC traded up $14.16 during midday trading on Wednesday, reaching $465.10. 139,725 shares of the company traded hands, compared to its average volume of 116,337. Credit Acceptance has a twelve month low of $409.22 and a twelve month high of $560.00. The firm has a market capitalization of $5.23 billion, a price-to-earnings ratio of 13.41 and a beta of 1.13. The company has a debt-to-equity ratio of 4.16, a current ratio of 22.03 and a quick ratio of 22.03. The company has a fifty day moving average price of $503.60 and a 200 day moving average price of $497.77.

Insider Activity at Credit Acceptance

In other Credit Acceptance news, major shareholder Jill Foss Watson sold 20,000 shares of the business's stock in a transaction on Wednesday, July 2nd. The stock was sold at an average price of $539.97, for a total transaction of $10,799,400.00. Following the completion of the transaction, the insider owned 102,107 shares in the company, valued at approximately $55,134,716.79. The trade was a 16.38% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Daniel A. Ulatowski sold 6,356 shares of the business's stock in a transaction on Wednesday, June 11th. The stock was sold at an average price of $522.16, for a total value of $3,318,848.96. Following the transaction, the insider owned 28,290 shares of the company's stock, valued at $14,771,906.40. This trade represents a 18.35% decrease in their position. The disclosure for this sale can be found here. Insiders sold 26,731 shares of company stock worth $14,307,733 in the last 90 days. 5.30% of the stock is currently owned by company insiders.

Institutional Trading of Credit Acceptance

A number of hedge funds and other institutional investors have recently modified their holdings of CACC. Royal Bank of Canada raised its stake in shares of Credit Acceptance by 31.6% in the 1st quarter. Royal Bank of Canada now owns 1,916 shares of the credit services provider's stock worth $989,000 after buying an additional 460 shares in the last quarter. AQR Capital Management LLC raised its stake in shares of Credit Acceptance by 230.6% in the 1st quarter. AQR Capital Management LLC now owns 7,885 shares of the credit services provider's stock worth $3,961,000 after buying an additional 5,500 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Credit Acceptance by 3.9% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 23,886 shares of the credit services provider's stock worth $12,334,000 after buying an additional 900 shares in the last quarter. 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.