Credit Acceptance (NASDAQ:CACC) Announces Earnings Results

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) posted its quarterly earnings results on Thursday. The credit services provider reported $8.56 earnings per share 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 26.48%. The company had revenue of $583.80 million during the quarter, compared to the consensus estimate of $583.30 million. During the same quarter in the prior year, the business earned $10.29 earnings per share. The firm's revenue for the quarter was up 8.5% compared to the same quarter last year.

Credit Acceptance Stock Performance

CACC opened at $447.51 on Friday. The stock has a market cap of $5.19 billion, a price-to-earnings ratio of 12.90 and a beta of 1.15. Credit Acceptance has a 12-month low of $409.22 and a 12-month high of $560.00. The business has a 50 day moving average of $505.02 and a 200-day moving average of $498.08. The company has a quick ratio of 17.64, a current ratio of 17.64 and a debt-to-equity ratio of 3.92.

Insider Buying and Selling at Credit Acceptance

In other Credit Acceptance news, insider Daniel A. Ulatowski sold 6,356 shares of Credit Acceptance stock in a transaction that occurred on Wednesday, June 11th. The stock was sold at an average price of $522.16, for a total transaction of $3,318,848.96. Following the sale, the insider directly owned 28,290 shares of the company's stock, valued at approximately $14,771,906.40. The trade was a 18.35% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Andrew K. Rostami sold 375 shares of the business's stock in a transaction that occurred on Friday, June 20th. The stock was sold at an average price of $505.29, for a total value of $189,483.75. Following the completion of the sale, the insider directly owned 25,478 shares in the company, valued at approximately $12,873,778.62. This represents a 1.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 26,731 shares of company stock valued at $14,307,733. 5.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Credit Acceptance

Several hedge funds and other institutional investors have recently modified their holdings of the company. Royal Bank of Canada lifted its holdings in shares of Credit Acceptance by 31.6% during the 1st quarter. Royal Bank of Canada now owns 1,916 shares of the credit services provider's stock valued at $989,000 after buying an additional 460 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings 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 valued at $12,334,000 after acquiring an additional 900 shares during the last quarter. Finally, AQR Capital Management LLC lifted its holdings 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 valued at $3,961,000 after acquiring an additional 5,500 shares during the last quarter. 81.71% of the stock is owned by institutional investors.

Credit Acceptance Company Profile

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.

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