Bank of America Corp DE Makes New $34.13 Million Investment in Credit Acceptance Corporation $CACC

Key Points

• Bank of America acquired 53,603 shares of Credit Acceptance, valued at approximately $34.1 million, giving it a 0.51% stake. Institutional investors collectively own 81.71% of the company.
• Credit Acceptance reported quarterly EPS of $12.12, slightly below the $12.20 consensus estimate, while revenue reached $415 million and increased 0.6% year over year.
• The stock opened at $562.34, below its $570 average analyst price target. Analysts maintain a consensus “Hold” rating, while insiders have sold more than $14.8 million in shares over the past 90 days.

Bank of America Corp DE bought a new position in Credit Acceptance Corporation (NASDAQ:CACC - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 53,603 shares of the credit services provider's stock, valued at approximately $34,131,000. Bank of America Corp DE owned approximately 0.51% of Credit Acceptance as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds also recently made changes to their positions in the company. Jupiter Topco LLC bought a new position in shares of Credit Acceptance during the second quarter valued at $1,812,000. PDT Partners LLC bought a new stake in Credit Acceptance in the 2nd quarter worth about $1,705,000. Canada Pension Plan Investment Board bought a new stake in Credit Acceptance in the 2nd quarter worth about $408,000. Legal & General Group Plc purchased a new position in Credit Acceptance in the 2nd quarter worth about $7,936,000. Finally, The Manufacturers Life Insurance Company purchased a new position in Credit Acceptance in the 2nd quarter worth about $1,337,000. Institutional investors own 81.71% of the company's stock.

Insider Transactions at Credit Acceptance

In related news, insider Nicholas J. Elliott sold 2,306 shares of the business's stock in a transaction on Friday, June 26th. The shares were sold at an average price of $629.99, for a total value of $1,452,756.94. Following the sale, the insider owned 20,897 shares in the company, valued at approximately $13,164,901.03. The trade was a 9.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Jill Watson sold 11,000 shares of the company's stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $653.24, for a total transaction of $7,185,640.00. Following the sale, the insider directly owned 49,346 shares in the company, valued at approximately $32,234,781.04. The trade was a 18.23% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 23,146 shares of company stock valued at $14,824,663 in the last ninety days. Corporate insiders own 6.10% of the company's stock.

Credit Acceptance Stock Down 0.3%

NASDAQ CACC opened at $562.34 on Wednesday. Credit Acceptance Corporation has a 52 week low of $401.90 and a 52 week high of $668.86. The company has a quick ratio of 14.89, a current ratio of 14.89 and a debt-to-equity ratio of 3.84. The company has a market capitalization of $5.88 billion, a P/E ratio of 12.36 and a beta of 1.35. The stock's 50-day moving average price is $590.80 and its 200-day moving average price is $551.91.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last posted 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 business had revenue of $415.00 million for the quarter, compared to the consensus estimate of $588.07 million. During the same period in the prior year, the business earned $10.05 earnings per share. Credit Acceptance's revenue was up .6% compared to the same quarter last year. On average, equities research analysts predict that Credit Acceptance Corporation will post 47.8 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on CACC. TD Cowen raised their price target on shares of Credit Acceptance from $575.00 to $600.00 and gave the company a "hold" rating in a report on Wednesday, August 5th. Weiss Ratings raised shares of Credit Acceptance from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, July 16th. One equities research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $570.00.

About Credit Acceptance

Credit Acceptance Corporation is a specialty finance company that provides automobile financing to consumers with limited or damaged credit histories. The company primarily operates through an indirect lending model, partnering with automobile dealers that offer financing to their customers at the point of sale.

Credit Acceptance purchases or services retail installment contracts originated by participating dealers and provides loan programs designed to help consumers obtain vehicles when they may not qualify for traditional prime lending.

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