469,703 Shares in Credit Acceptance Corporation $CACC Bought by M&T Bank Corp

Key Points

• M&T Bank Corp bought 469,703 shares of Credit Acceptance (NASDAQ:CACC) in Q4, a new position valued at about $208.3 million that represents roughly 4.26% of the company.
• Credit Acceptance beat EPS estimates ($11.35 vs. $10.30) but missed revenue ($408.2M vs. $582.6M consensus); the stock opened down about 4.0% at $521.23 and carries a consensus "Moderate Buy" rating with a $505 average target.
• Company insiders have been net sellers recently (CFO Jay D. Martin sold 3,000 shares under a Rule 10b5‑1 plan), with insiders owning 6.6% of the stock and institutional ownership at ~81.7%.

M&T Bank Corp bought a new position in Credit Acceptance Corporation (NASDAQ:CACC - Free Report) during the fourth quarter, according to its most recent filing with the SEC. The firm bought 469,703 shares of the credit services provider's stock, valued at approximately $208,294,000. M&T Bank Corp owned approximately 4.26% of Credit Acceptance as of its most recent SEC filing.

A number of other large investors also recently modified their holdings of CACC. Royal Bank of Canada lifted its holdings in shares of Credit Acceptance by 31.6% in the 1st quarter. Royal Bank of Canada now owns 1,916 shares of the credit services provider's stock worth $989,000 after purchasing an additional 460 shares in the last quarter. AQR Capital Management LLC lifted its holdings in shares of Credit Acceptance by 230.6% in the 1st quarter. AQR Capital Management LLC now owns 7,885 shares of the credit services provider's stock worth $3,961,000 after purchasing an additional 5,500 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Credit Acceptance by 3.9% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 23,886 shares of the credit services provider's stock worth $12,334,000 after purchasing an additional 900 shares in the last quarter. Creative Planning lifted its holdings in shares of Credit Acceptance by 35.6% in the 2nd quarter. Creative Planning now owns 529 shares of the credit services provider's stock worth $269,000 after purchasing an additional 139 shares in the last quarter. Finally, JPMorgan Chase & Co. lifted its holdings in shares of Credit Acceptance by 4.8% in the 2nd quarter. JPMorgan Chase & Co. now owns 5,077 shares of the credit services provider's stock worth $2,586,000 after purchasing an additional 232 shares in the last quarter. 81.71% of the stock is currently owned by institutional investors.

Insider Activity

In other news, CFO Jay D. Martin sold 3,000 shares of the firm's stock in a transaction on Friday, April 17th. The stock was sold at an average price of $525.63, for a total transaction of $1,576,890.00. Following the completion of the sale, the chief financial officer directly 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 sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kenneth Booth sold 2,000 shares of the firm's stock in a transaction on Monday, February 9th. The shares were sold at an average price of $508.00, for a total value of $1,016,000.00. Following the sale, the director directly owned 22,832 shares of the company's stock, valued at approximately $11,598,656. This represents a 8.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 18,638 shares of company stock valued at $9,536,280 in the last ninety days. 6.60% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

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

Credit Acceptance Trading Down 4.0%

Shares of Credit Acceptance stock opened at $521.23 on Wednesday. Credit Acceptance Corporation has a 1 year low of $401.90 and a 1 year high of $549.75. The firm has a market cap of $5.60 billion, a PE ratio of 14.28 and a beta of 1.32. The stock has a fifty day moving average price of $473.01 and a 200-day moving average price of $467.64. The company has a debt-to-equity ratio of 4.10, a current ratio of 16.91 and a quick ratio of 16.91.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last announced its earnings results on Thursday, January 29th. The credit services provider reported $11.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $10.30 by $1.05. Credit Acceptance had a return on equity of 28.86% and a net margin of 18.29%.The firm had revenue of $408.20 million during the quarter, compared to analyst estimates of $582.63 million. During the same period last year, the firm posted $10.17 EPS. The business's revenue was up 2.5% compared to the same quarter last year. Equities research analysts anticipate that Credit Acceptance Corporation will post 47 EPS for the current year.

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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