Credit Acceptance (NASDAQ:CACC) Director Kenneth Booth Sells 4,000 Shares

Key Points

• Kenneth Booth, a director of Credit Acceptance, sold 4,000 shares on April 20 at an average price of $534 under a pre-arranged Rule 10b5-1 plan, netting about $2.136 million and reducing his stake to 22,832 shares (a 14.91% ownership decrease).
• Credit Acceptance reported quarterly EPS of $11.35 (beating estimates) but missed on revenue; the stock trades near $526.76 with a market cap around $5.66 billion, a P/E of ~14.4, and an average analyst price target of $505 (consensus "Moderate Buy").

Credit Acceptance Corporation (NASDAQ:CACC - Get Free Report) Director Kenneth Booth sold 4,000 shares of Credit Acceptance stock in a transaction on Monday, April 20th. The shares were sold at an average price of $534.00, for a total transaction of $2,136,000.00. Following the completion of the transaction, the director owned 22,832 shares in the company, valued at approximately $12,192,288. This represents a 14.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Kenneth Booth also recently made the following trade(s):

• On Monday, February 9th, Kenneth Booth sold 2,000 shares of Credit Acceptance stock. The shares were sold at an average price of $508.00, for a total transaction of $1,016,000.00.

Credit Acceptance Stock Performance

NASDAQ CACC traded up $5.53 during trading on Wednesday, reaching $526.76. The company's stock had a trading volume of 102,990 shares, compared to its average volume of 203,771. The company has a debt-to-equity ratio of 4.10, a quick ratio of 16.91 and a current ratio of 16.91. The firm has a market cap of $5.66 billion, a price-to-earnings ratio of 14.43 and a beta of 1.32. Credit Acceptance Corporation has a twelve month low of $401.90 and a twelve month high of $549.75. The business's fifty day moving average price is $473.01 and its 200-day moving average price is $467.64.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last posted its quarterly earnings data on Thursday, January 29th. The credit services provider reported $11.35 EPS for the quarter, beating analysts' consensus estimates of $10.30 by $1.05. The company had revenue of $408.20 million for the quarter, compared to analyst estimates of $582.63 million. Credit Acceptance had a net margin of 18.29% and a return on equity of 28.86%. Credit Acceptance's quarterly revenue was up 2.5% on a year-over-year basis. During the same period in the previous year, the business posted $10.17 earnings per share. As a group, analysts anticipate that Credit Acceptance Corporation will post 47 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of research analysts have commented on the stock. Zacks Research upgraded shares of Credit Acceptance from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, February 3rd. TD Cowen lifted their target price on shares of Credit Acceptance from $460.00 to $470.00 and gave the company a "hold" rating in a report on Friday, January 30th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Credit Acceptance in a report on Monday. Finally, Stephens lifted their target price on shares of Credit Acceptance from $450.00 to $540.00 and gave the company an "equal weight" rating in a report on Friday, April 17th. One investment analyst has rated the stock with a Strong Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, Credit Acceptance presently has an average rating of "Moderate Buy" and an average price target of $505.00.

Institutional Trading of Credit Acceptance

Several hedge funds and other institutional investors have recently made changes to their positions in the company. M&T Bank Corp purchased a new stake in shares of Credit Acceptance in the fourth quarter valued at about $208,294,000. Boston Partners boosted its holdings in Credit Acceptance by 3.4% during the fourth quarter. Boston Partners now owns 456,253 shares of the credit services provider's stock worth $202,373,000 after buying an additional 14,877 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in Credit Acceptance by 9.8% during the fourth quarter. Dimensional Fund Advisors LP now owns 223,872 shares of the credit services provider's stock worth $99,284,000 after buying an additional 20,011 shares in the last quarter. Smead Capital Management Inc. boosted its holdings in Credit Acceptance by 17.0% during the second quarter. Smead Capital Management Inc. now owns 216,811 shares of the credit services provider's stock worth $110,450,000 after buying an additional 31,438 shares in the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH boosted its holdings in Credit Acceptance by 764.8% during the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 203,879 shares of the credit services provider's stock worth $91,652,000 after buying an additional 180,304 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, 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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