Credit Acceptance (NASDAQ:CACC) Stock Crosses Above 200-Day Moving Average - Should You Sell?

Key Points

• Credit Acceptance shares crossed above their 200-day moving average of $533.82, trading as high as $579.60 and closing near $570.54.
• Analyst sentiment remains cautious: the stock has an average “Hold” rating from four analysts, with a consensus price target of $570, despite TD Cowen raising its target to $600.
• The company slightly missed quarterly earnings expectations, reporting $12.12 in EPS versus $12.20 expected, while insiders sold about $27.5 million of stock over the past three months.

Credit Acceptance Corporation (NASDAQ:CACC - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Tuesday . The stock has a two hundred day moving average of $533.82 and traded as high as $579.60. Credit Acceptance shares last traded at $570.54, with a volume of 86,479 shares traded.

Analyst Ratings Changes

Several analysts have recently issued reports on the stock. Weiss Ratings raised shares of Credit Acceptance from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, July 16th. Zacks Research downgraded shares of Credit Acceptance from a "strong-buy" rating to a "hold" rating in a report on Wednesday, May 13th. Finally, TD Cowen lifted their price objective on shares of Credit Acceptance from $575.00 to $600.00 and gave the company a "hold" rating in a research note on Wednesday, August 5th. One investment analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, Credit Acceptance presently has an average rating of "Hold" and a consensus target price of $570.00.

Credit Acceptance Stock Down 0.4%

The company has a debt-to-equity ratio of 3.84, a quick ratio of 14.89 and a current ratio of 14.89. The firm has a market capitalization of $5.97 billion, a PE ratio of 12.54 and a beta of 1.37. The company's 50 day simple moving average is $597.59 and its 200-day simple moving average is $533.82.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The credit services provider reported $12.12 EPS for the quarter, missing analysts' consensus estimates of $12.20 by ($0.08). Credit Acceptance had a net margin of 21.54% and a return on equity of 31.67%. The firm had revenue of $415.00 million for the quarter, compared to analysts' expectations of $588.07 million. During the same quarter last year, the firm earned $10.05 earnings per share. The firm's revenue for the quarter was up .6% on a year-over-year basis. On average, analysts forecast that Credit Acceptance Corporation will post 47.8 EPS for the current fiscal year.

Insiders Place Their Bets

In other Credit Acceptance news, insider Erin J. Kerber sold 8,656 shares of the firm's stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $600.94, for a total value of $5,201,736.64. Following the sale, the insider owned 25,711 shares of the company's stock, valued at $15,450,768.34. This trade represents a 25.19% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jonathan Lum sold 6,000 shares of Credit Acceptance stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $600.00, for a total value of $3,600,000.00. Following the sale, the chief operating officer owned 31,609 shares of the company's stock, valued at approximately $18,965,400. This trade represents a 15.95% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 44,289 shares of company stock worth $27,525,241. 6.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Credit Acceptance

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. State of Wyoming purchased a new position in Credit Acceptance in the 4th quarter worth approximately $27,000. Kestra Advisory Services LLC purchased a new stake in shares of Credit Acceptance during the 4th quarter valued at $27,000. Parallel Advisors LLC raised its position in shares of Credit Acceptance by 590.0% during the 1st quarter. Parallel Advisors LLC now owns 69 shares of the credit services provider's stock valued at $29,000 after buying an additional 59 shares in the last quarter. Altshuler Shaham Ltd lifted its holdings in shares of Credit Acceptance by 37.3% during the 1st quarter. Altshuler Shaham Ltd now owns 70 shares of the credit services provider's stock worth $30,000 after acquiring an additional 19 shares during the last quarter. Finally, Rockefeller Capital Management L.P. lifted 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 acquiring an additional 24 shares during the last quarter. 81.71% of the stock is owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source