Credit Acceptance (NASDAQ:CACC) Sees Strong Trading Volume - Should You Buy?

Credit Acceptance Co. (NASDAQ:CACC - Get Free Report) saw strong trading volume on Monday . 123,896 shares traded hands during trading, an increase of 65% from the previous session's volume of 74,925 shares.The stock last traded at $505.58 and had previously closed at $505.60.

Credit Acceptance Stock Down 2.7%

The company's 50-day moving average is $487.42 and its 200 day moving average is $489.26. The company has a market capitalization of $5.80 billion, a PE ratio of 25.15 and a beta of 1.16. The company has a debt-to-equity ratio of 3.63, a quick ratio of 20.33 and a current ratio of 20.33.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last announced its quarterly earnings data on Wednesday, April 30th. The credit services provider reported $9.35 EPS for the quarter, missing the consensus estimate of $10.31 by ($0.96). Credit Acceptance had a net margin of 11.46% and a return on equity of 29.01%. The firm had revenue of $571.10 million for the quarter, compared to analysts' expectations of $570.25 million. During the same period last year, the company posted $9.28 earnings per share. The business's revenue for the quarter was up 12.4% compared to the same quarter last year. As a group, analysts anticipate that Credit Acceptance Co. will post 53.24 EPS for the current year.

Insider Activity at Credit Acceptance

In other Credit Acceptance news, insider Douglas W. Busk sold 3,000 shares of the company's stock in a transaction dated Tuesday, March 25th. The shares were sold at an average price of $515.97, for a total transaction of $1,547,910.00. Following the transaction, the insider now owns 3,112 shares in the company, valued at approximately $1,605,698.64. This represents a 49.08% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Nicholas J. Elliott sold 300 shares of the company's stock in a transaction dated Thursday, March 20th. The shares were sold at an average price of $502.00, for a total transaction of $150,600.00. Following the transaction, the insider now owns 19,385 shares in the company, valued at $9,731,270. This represents a 1.52% decrease in their position. The disclosure for this sale can be found here. 5.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Credit Acceptance

Several hedge funds and other institutional investors have recently bought and sold shares of CACC. Barclays PLC lifted its stake in Credit Acceptance by 85.8% during the 3rd quarter. Barclays PLC now owns 5,241 shares of the credit services provider's stock valued at $2,324,000 after acquiring an additional 2,420 shares during the period. Entropy Technologies LP bought a new position in shares of Credit Acceptance in the 4th quarter worth approximately $235,000. Principal Securities Inc. bought a new position in shares of Credit Acceptance in the 4th quarter worth approximately $197,000. State of New Jersey Common Pension Fund D lifted its stake in shares of Credit Acceptance by 13.3% in the 4th quarter. State of New Jersey Common Pension Fund D now owns 4,717 shares of the credit services provider's stock worth $2,214,000 after purchasing an additional 554 shares during the period. Finally, Sanctuary Advisors LLC bought a new position in shares of Credit Acceptance in the 4th quarter worth approximately $486,000. 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.