Credit Acceptance (NASDAQ:CACC) CTO Ravi Mohan Valiyaveettil Sells 1,262 Shares

Key Points

• Credit Acceptance CTO Ravi Mohan Valiyaveettil sold 1,262 shares on May 6 at an average price of $550, totaling about $694,100. The sale was made under a pre-arranged Rule 10b5-1 plan, and he still owns 25,985 shares.
• The company missed quarterly EPS and revenue estimates in its latest report, posting $10.71 EPS versus $10.73 expected and revenue of $406 million versus $580.77 million forecast. Revenue still rose 1.6% year over year, and the firm reported a 19.49% net margin and 29.95% return on equity.
• Despite the insider sale and mixed earnings, analysts remain cautiously positive on CACC, with an average rating of “Moderate Buy” and a mean price target of $520. The stock recently traded around $533.15, near its 12-month high of $565.14.

Credit Acceptance Corporation (NASDAQ:CACC - Get Free Report) CTO Ravi Mohan Valiyaveettil sold 1,262 shares of the business's stock in a transaction that occurred on Wednesday, May 6th. The shares were sold at an average price of $550.00, for a total value of $694,100.00. Following the transaction, the chief technology officer owned 25,985 shares of the company's stock, valued at $14,291,750. This represents a 4.63% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Credit Acceptance Stock Performance

NASDAQ:CACC traded up $10.28 during midday trading on Friday, reaching $533.15. 198,978 shares of the company traded hands, compared to its average volume of 194,829. Credit Acceptance Corporation has a twelve month low of $401.90 and a twelve month high of $565.14. The firm has a market capitalization of $5.58 billion, a price-to-earnings ratio of 13.25 and a beta of 1.36. The company has a debt-to-equity ratio of 4.09, a current ratio of 13.62 and a quick ratio of 16.91. The company has a fifty day moving average price of $478.16 and a 200 day moving average price of $469.49.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $10.73 by ($0.02). Credit Acceptance had a net margin of 19.49% and a return on equity of 29.95%. The company had revenue of $406.00 million for the quarter, compared to analyst estimates of $580.77 million. During the same quarter in the prior year, the firm earned $9.35 EPS. The company's revenue for the quarter was up 1.6% compared to the same quarter last year. On average, analysts expect that Credit Acceptance Corporation will post 47 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on CACC. Weiss Ratings reissued a "hold (c)" rating on shares of Credit Acceptance in a research note on Monday, April 20th. Stephens boosted their target price on shares of Credit Acceptance from $450.00 to $540.00 and gave the company an "equal weight" rating in a research note on Friday, April 17th. Zacks Research raised shares of Credit Acceptance from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, February 3rd. Finally, TD Cowen boosted their target price on shares of Credit Acceptance from $450.00 to $500.00 and gave the company a "hold" rating in a research note on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $520.00.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in CACC. Royal Bank of Canada boosted its position in 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 worth $989,000 after acquiring an additional 460 shares during the period. AQR Capital Management LLC lifted 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 acquiring an additional 5,500 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted 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 acquiring an additional 900 shares during the period. Creative Planning lifted its stake in shares of Credit Acceptance by 35.6% in the 2nd quarter. Creative Planning now owns 529 shares of the credit services provider's stock worth $269,000 after acquiring an additional 139 shares during the period. Finally, JPMorgan Chase & Co. lifted its stake in shares of Credit Acceptance by 4.8% in the 2nd quarter. JPMorgan Chase & Co. now owns 5,077 shares of the credit services provider's stock worth $2,586,000 after acquiring an additional 232 shares during the period. Institutional investors and hedge funds own 81.71% of the company's stock.

About Credit Acceptance

Credit Acceptance Corporation, founded in 1972 and headquartered in Southfield, Michigan, is a specialty finance company focused on the indirect automotive lending market. The company partners with independent and franchised auto dealers to facilitate purchase financing for consumers who may not qualify for traditional prime auto loans. By purchasing retail installment contracts originated by these dealers, Credit Acceptance provides capital and credit insurance to support vehicle sales, enabling dealers to broaden their customer base and reduce credit risk.

Through its proprietary underwriting platform and risk management strategies, Credit Acceptance evaluates borrower applications, structures credit plans, and retains servicing rights on the acquired contracts.

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