Aristeia Capital L.L.C. Acquires Shares of 545 Credit Acceptance Corporation $CACC

Key Points

• Aristeia Capital L.L.C. has acquired 545 shares of Credit Acceptance Corporation, worth approximately $281,000, signaling institutional interest in the company.
• Credit Acceptance Corporation reported a Earnings Per Share (EPS) of $8.56 for the last quarter, missing expectations and highlighting challenges in profitability.
• Insider transactions revealed a significant number of shares sold recently, with insiders offloading shares worth over $19 million in the past three months, indicating potential concerns about the stock's performance.

Aristeia Capital L.L.C. bought a new stake in Credit Acceptance Corporation (NASDAQ:CACC - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 545 shares of the credit services provider's stock, valued at approximately $281,000.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Sierra Ocean LLC purchased a new stake in Credit Acceptance in the 1st quarter valued at approximately $26,000. CX Institutional acquired a new position in Credit Acceptance in the 1st quarter valued at $36,000. BI Asset Management Fondsmaeglerselskab A S acquired a new position in Credit Acceptance in the 1st quarter valued at $44,000. Harbor Capital Advisors Inc. acquired a new position in Credit Acceptance in the 1st quarter valued at $49,000. Finally, Point72 Asia Singapore Pte. Ltd. raised its holdings in Credit Acceptance by 13,400.0% in the 4th 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 last quarter. Hedge funds and other institutional investors own 81.71% of the company's stock.

Insider Transactions at Credit Acceptance

In other news, COO Jonathan Lum sold 6,000 shares of the company's stock in a transaction on Monday, August 25th. The stock was sold at an average price of $512.61, for a total transaction of $3,075,660.00. Following the completion of the sale, the chief operating officer directly owned 31,493 shares in the company, valued at $16,143,626.73. This represents a 16.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, major shareholder Jill Foss Watson sold 20,000 shares of the company's stock in a transaction on Wednesday, July 2nd. The stock was sold at an average price of $539.97, for a total value of $10,799,400.00. Following the sale, the insider owned 102,107 shares of the company's stock, valued at approximately $55,134,716.79. The trade was a 16.38% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 30,072 shares of company stock valued at $15,943,779. Corporate insiders own 6.60% of the company's stock.

Credit Acceptance Trading Down 9.6%

Shares of CACC stock traded down $50.56 on Friday, reaching $474.44. 272,614 shares of the stock were exchanged, compared to its average volume of 101,336. The stock has a market cap of $5.33 billion, a P/E ratio of 13.68 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. The firm has a 50 day moving average of $500.25 and a two-hundred day moving average of $495.03. Credit Acceptance Corporation has a 1-year low of $414.15 and a 1-year high of $560.00.

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

About Credit Acceptance

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.