Credit Acceptance (NASDAQ:CACC) Receives Hold (C) Rating from Weiss Ratings

Key Points

• Credit Acceptance has received a "hold (C)" rating from Weiss Ratings, indicating a cautious outlook on the stock's performance.
• Despite missing quarterly earnings expectations with $8.56 earnings per share, their revenue increased by 8.5% year-over-year.
• Insiders have sold nearly 13,700 shares worth approximately $6.98 million over the last ninety days, while institutional investors hold around 81.71% of the company's stock.

Credit Acceptance (NASDAQ:CACC - Get Free Report)'s stock had its "hold (c)" rating restated by equities research analysts at Weiss Ratings in a research report issued on Wednesday,Weiss Ratings reports.

Credit Acceptance Price Performance

Shares of NASDAQ:CACC traded up $20.16 during midday trading on Wednesday, hitting $513.14. The company had a trading volume of 150,387 shares, compared to its average volume of 138,140. Credit Acceptance has a twelve month low of $414.15 and a twelve month high of $560.00. 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 stock has a market cap of $5.77 billion, a price-to-earnings ratio of 14.79 and a beta of 1.19. The business's 50-day simple moving average is $490.35 and its 200-day simple moving average is $495.69.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The credit services provider reported $8.56 earnings per share for the quarter, missing the consensus estimate of $9.84 by ($1.28). The business had revenue of $583.80 million during the quarter, compared to analysts' expectations of $583.30 million. Credit Acceptance had a return on equity of 27.06% and a net margin of 18.69%.The company's revenue was up 8.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $10.29 earnings per share. On average, research analysts predict that Credit Acceptance will post 53.24 earnings per share for the current year.

Insider Transactions at Credit Acceptance

In other Credit Acceptance news, insider Daniel A. Ulatowski sold 2,139 shares of Credit Acceptance stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $509.05, for a total transaction of $1,088,857.95. Following the completion of the sale, the insider directly owned 28,290 shares of the company's stock, valued at $14,401,024.50. The trade was a 7.03% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, COO Jonathan Lum sold 6,000 shares of Credit Acceptance stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $512.61, for a total value of $3,075,660.00. Following the sale, the chief operating officer directly owned 31,493 shares of the company's stock, valued at $16,143,626.73. This trade represents a 16.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 13,697 shares of company stock worth $6,981,255 over the last ninety days. Company insiders own 6.60% of the company's stock.

Institutional Trading of Credit Acceptance

A number of hedge funds and other institutional investors have recently made changes to their positions in CACC. Sierra Ocean LLC acquired a new stake in shares of Credit Acceptance during the first quarter worth about $26,000. CX Institutional purchased a new stake in Credit Acceptance in the 1st quarter valued at approximately $36,000. BI Asset Management Fondsmaeglerselskab A S purchased a new stake in shares of Credit Acceptance during the 1st quarter worth approximately $44,000. Harbor Capital Advisors Inc. purchased a new stake in shares of Credit Acceptance during the 1st quarter worth approximately $49,000. Finally, CWM LLC boosted its stake in shares of Credit Acceptance by 206.3% during the 1st quarter. CWM LLC now owns 193 shares of the credit services provider's stock worth $100,000 after acquiring an additional 130 shares in the last quarter. Institutional investors and hedge funds 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.

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