Credit Acceptance (NASDAQ:CACC) Shares Pass Above 200 Day Moving Average - Here's Why

Key Points

• Technical breakout: Shares of Credit Acceptance (CACC) moved above its 200-day moving average of $468.58, trading as high as $515.35 and last at $507.87 on volume of 116,661 shares.
• Analyst outlook: Several firms raised targets (Stephens to $540) and Zacks upgraded to a "strong-buy," leaving a consensus "Moderate Buy" rating with an average target of $505.00.
• Insider selling: CFO Jay D. Martin and Director Kenneth Booth sold shares under pre-arranged Rule 10b5-1 plans, with insiders selling about 29,852 shares (~$15.78M) in the past three months while owning 6.60% of the stock.

Shares of Credit Acceptance Corporation (NASDAQ:CACC - Get Free Report) passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $468.58 and traded as high as $515.35. Credit Acceptance shares last traded at $507.8650, with a volume of 116,661 shares changing hands.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the company. Stephens raised their price objective on Credit Acceptance from $450.00 to $540.00 and gave the company an "equal weight" rating in a research note on Friday, April 17th. Weiss Ratings reissued a "hold (c)" rating on shares of Credit Acceptance in a research note on Monday, April 20th. TD Cowen raised their price objective on Credit Acceptance from $460.00 to $470.00 and gave the company a "hold" rating in a research note on Friday, January 30th. Finally, Zacks Research raised Credit Acceptance from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, February 3rd. One investment analyst has rated the stock with a Strong Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $505.00.

Credit Acceptance Price Performance

The stock has a market cap of $5.29 billion, a price-to-earnings ratio of 13.91 and a beta of 1.36. The stock has a fifty day simple moving average of $476.01 and a 200-day simple moving average of $468.58. The company has a current ratio of 16.91, a quick ratio of 16.91 and a debt-to-equity ratio of 4.10.

Insider Transactions at Credit Acceptance

In other Credit Acceptance news, CFO Jay D. Martin sold 3,000 shares of the firm's stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $525.63, for a total value of $1,576,890.00. Following the sale, the chief financial officer owned 25,963 shares of the company's stock, valued at $13,646,931.69. This trade represents a 10.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kenneth Booth sold 4,000 shares of the firm's stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $534.00, for a total value of $2,136,000.00. Following the completion of the sale, the director directly owned 22,832 shares in the company, valued at $12,192,288. This trade represents a 14.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 29,852 shares of company stock worth $15,782,643. Insiders own 6.60% of the company's stock.

Institutional Trading of Credit Acceptance

Several institutional investors have recently modified their holdings of CACC. State of Wyoming acquired a new stake in shares of Credit Acceptance during the 4th quarter worth approximately $27,000. Kestra Advisory Services LLC acquired a new stake in shares of Credit Acceptance during the 4th quarter worth approximately $27,000. Rockefeller Capital Management L.P. grew 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 worth $31,000 after purchasing an additional 24 shares in the last quarter. Allworth Financial LP grew its holdings in shares of Credit Acceptance by 141.9% during the 3rd quarter. Allworth Financial LP now owns 104 shares of the credit services provider's stock worth $49,000 after purchasing an additional 61 shares in the last quarter. Finally, Vestcor Inc acquired a new stake in shares of Credit Acceptance during the 3rd quarter worth approximately $50,000. 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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