Abrams Bison Investments LLC Reduces Stock Holdings in Credit Acceptance Corporation $CACC

Key Points

• Abrams Bison Investments LLC has reduced its holdings in Credit Acceptance Corporation (CACC) by 17.3%, selling 30,203 shares and now owning 144,797 shares, which represents approximately 8.1% of its total investments.
• Credit Acceptance reported a quarterly earnings miss, with earnings per share of $8.56, falling short of the consensus estimate of $9.84, although its revenue increased by 8.5% year-over-year.
• Insiders have sold a total of 36,428 shares of Credit Acceptance stock over the past ninety days, indicating a potential shift in their confidence regarding the company's performance.

Abrams Bison Investments LLC cut its stake in Credit Acceptance Corporation (NASDAQ:CACC - Free Report) by 17.3% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 144,797 shares of the credit services provider's stock after selling 30,203 shares during the quarter. Credit Acceptance comprises about 8.1% of Abrams Bison Investments LLC's investment portfolio, making the stock its 6th biggest position. Abrams Bison Investments LLC owned 1.25% of Credit Acceptance worth $74,766,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds also recently added to or reduced their stakes in CACC. Sierra Ocean LLC acquired a new stake in shares of Credit Acceptance during the first quarter valued at about $26,000. CX Institutional acquired a new position in Credit Acceptance in the first quarter valued at approximately $36,000. BI Asset Management Fondsmaeglerselskab A S acquired a new position in Credit Acceptance in the first quarter valued at approximately $44,000. Harbor Capital Advisors Inc. acquired a new position in Credit Acceptance in the first quarter valued at approximately $49,000. Finally, Point72 Asia Singapore Pte. Ltd. boosted its stake in Credit Acceptance by 13,400.0% in the fourth quarter. Point72 Asia Singapore Pte. Ltd. now owns 135 shares of the credit services provider's stock valued at $64,000 after acquiring an additional 134 shares during the period. 81.71% of the stock is owned by hedge funds and other institutional investors.

Credit Acceptance Stock Performance

CACC stock traded up $1.88 during midday trading on Friday, reaching $522.61. The company had a trading volume of 79,796 shares, compared to its average volume of 102,584. The stock has a 50 day moving average price of $502.05 and a 200 day moving average price of $494.71. The firm has a market capitalization of $5.87 billion, a PE ratio of 15.07 and a beta of 1.25. The company has a quick ratio of 22.03, a current ratio of 22.03 and a debt-to-equity ratio of 4.16. Credit Acceptance Corporation has a fifty-two week low of $409.22 and a fifty-two week high of $560.00.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The credit services provider reported $8.56 earnings per share for the quarter, missing analysts' consensus estimates of $9.84 by ($1.28). The business had revenue of $583.80 million for the quarter, compared to the consensus estimate of $583.30 million. Credit Acceptance had a net margin of 18.69% and a return on equity of 27.06%. The business's quarterly revenue was up 8.5% on a year-over-year basis. During the same period last year, the firm posted $10.29 EPS. Analysts anticipate that Credit Acceptance Corporation will post 53.24 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Andrew K. Rostami sold 375 shares of Credit Acceptance stock in a transaction that occurred on Friday, June 20th. The stock was sold at an average price of $505.29, for a total transaction of $189,483.75. Following the sale, the insider owned 25,478 shares of the company's stock, valued at approximately $12,873,778.62. The trade was a 1.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, major shareholder Jill Foss Watson sold 20,000 shares of Credit Acceptance stock in a transaction that occurred on Wednesday, July 2nd. The shares were sold at an average price of $539.97, for a total value of $10,799,400.00. Following the sale, the insider directly owned 102,107 shares in the company, valued at approximately $55,134,716.79. This trade represents a 16.38% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 36,428 shares of company stock worth $19,262,627. 6.60% of the stock is currently owned by corporate insiders.

Credit Acceptance Profile

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.