Credit Acceptance (NASDAQ:CACC) Share Price Crosses Above Two Hundred Day Moving Average - What's Next?

Key Points

• Technical breakout: Shares crossed above their 200‑day moving average (200‑day MA $466.33), trading as high as $475.64 with a last trade near $468.97, and the MarketBeat consensus target is about $470 ("Moderate Buy").
• Mixed quarterly results: Credit Acceptance beat on EPS ($11.35 vs. $10.30 est.) but missed revenue expectations ($408.2M vs. $582.6M est.); the company reports a 18.3% net margin, 28.9% ROE and a P/E of 12.85.
• Insider selling and heavy institutional ownership: Recent sales by the director and CFO (insiders sold ~11,576 shares worth $5.82M in 90 days) coincide with 81.71% of shares held by hedge funds and other institutions.

Shares of Credit Acceptance Corporation (NASDAQ:CACC - Get Free Report) passed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $466.33 and traded as high as $475.64. Credit Acceptance shares last traded at $468.97, with a volume of 170,238 shares traded.

Wall Street Analyst Weigh In

A number of research firms recently commented on CACC. TD Cowen lifted their target price on shares of Credit Acceptance from $460.00 to $470.00 and gave the stock a "hold" rating in a research note on Friday, January 30th. Weiss Ratings reiterated a "hold (c)" rating on shares of Credit Acceptance in a research note on Wednesday, January 21st. Finally, Zacks Research upgraded shares of Credit Acceptance from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, February 3rd. One research analyst has rated the stock with a Strong Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $470.00.

Credit Acceptance Stock Performance

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's 50 day simple moving average is $473.30 and its 200 day simple moving average is $466.33. The firm has a market capitalization of $5.04 billion, a price-to-earnings ratio of 12.85 and a beta of 1.32.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last announced its quarterly earnings data on Thursday, January 29th. The credit services provider reported $11.35 EPS for the quarter, beating the consensus estimate of $10.30 by $1.05. Credit Acceptance had a net margin of 18.29% and a return on equity of 28.86%. The business had revenue of $408.20 million during the quarter, compared to analysts' expectations of $582.63 million. During the same period in the previous year, the business posted $10.17 EPS. The business's quarterly revenue was up 2.5% compared to the same quarter last year. Sell-side analysts forecast that Credit Acceptance Corporation will post 53.24 earnings per share for the current fiscal year.

Insider Buying and Selling at Credit Acceptance

In other Credit Acceptance news, Director Kenneth Booth sold 2,000 shares of Credit Acceptance stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $508.00, for a total transaction of $1,016,000.00. Following the completion of the sale, the director directly owned 22,832 shares in the company, valued at approximately $11,598,656. The trade was a 8.05% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CFO Jay D. Martin sold 4,340 shares of Credit Acceptance stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $512.55, for a total transaction of $2,224,467.00. Following the sale, the chief financial officer owned 25,963 shares of the company's stock, valued at approximately $13,307,335.65. The trade was a 14.32% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 11,576 shares of company stock worth $5,824,119. Company insiders own 6.60% of the company's stock.

Hedge Funds Weigh In On Credit Acceptance

Several institutional investors have recently made changes to their positions in the company. Global Retirement Partners LLC increased its holdings in shares of Credit Acceptance by 2.7% during the 3rd quarter. Global Retirement Partners LLC now owns 882 shares of the credit services provider's stock valued at $412,000 after purchasing an additional 23 shares in the last quarter. Rockefeller Capital Management L.P. increased its holdings in shares of Credit Acceptance by 53.3% during the 4th quarter. Rockefeller Capital Management L.P. now owns 69 shares of the credit services provider's stock valued at $31,000 after purchasing an additional 24 shares in the last quarter. Janney Montgomery Scott LLC increased its holdings in shares of Credit Acceptance by 4.6% during the 4th quarter. Janney Montgomery Scott LLC now owns 571 shares of the credit services provider's stock valued at $253,000 after purchasing an additional 25 shares in the last quarter. Cetera Investment Advisers increased its holdings in shares of Credit Acceptance by 6.3% during the 4th quarter. Cetera Investment Advisers now owns 508 shares of the credit services provider's stock valued at $225,000 after purchasing an additional 30 shares in the last quarter. Finally, Russell Investments Group Ltd. increased its holdings in shares of Credit Acceptance by 5.3% during the 3rd quarter. Russell Investments Group Ltd. now owns 721 shares of the credit services provider's stock valued at $337,000 after purchasing an additional 36 shares in the last quarter. 81.71% of the stock is owned by hedge funds and other institutional investors.

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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