Bank of New York Mellon Corp Buys Shares of 30,384 Credit Acceptance Corporation $CACC

Key Points

• Bank of New York Mellon acquired 30,384 shares of Credit Acceptance, valued at approximately $19.3 million, giving it a 0.29% stake. Institutional investors and hedge funds collectively own 81.71% of the company.
• Analyst sentiment remains cautious: CACC has a consensus rating of “Hold” and an average price target of $570, despite TD Cowen raising its target to $600.
• Credit Acceptance reported quarterly EPS of $12.12, slightly below the $12.20 consensus, while revenue reached $415 million. Meanwhile, insiders sold 44,289 shares worth approximately $27.5 million over the past 90 days.

Bank of New York Mellon Corp acquired a new position in shares of Credit Acceptance Corporation (NASDAQ:CACC - Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The firm acquired 30,384 shares of the credit services provider's stock, valued at approximately $19,347,000. Bank of New York Mellon Corp owned approximately 0.29% of Credit Acceptance at the end of the most recent quarter.

Several other institutional investors also recently bought and sold shares of CACC. State of Wyoming acquired a new position in Credit Acceptance in the fourth quarter valued at $27,000. Kestra Advisory Services LLC purchased a new stake in shares of Credit Acceptance in the fourth quarter worth about $27,000. Parallel Advisors LLC grew its position in Credit Acceptance by 590.0% in the first quarter. Parallel Advisors LLC now owns 69 shares of the credit services provider's stock valued at $29,000 after acquiring an additional 59 shares in the last quarter. Altshuler Shaham Ltd increased its stake in 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 buying an additional 19 shares during the period. Finally, Rockefeller Capital Management L.P. boosted its holdings in Credit Acceptance by 53.3% in the fourth quarter. Rockefeller Capital Management L.P. now owns 69 shares of the credit services provider's stock valued at $31,000 after purchasing an additional 24 shares during the last quarter. 81.71% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on CACC. Zacks Research lowered shares of Credit Acceptance from a "strong-buy" rating to a "hold" rating in a report on Wednesday, May 13th. Weiss Ratings raised Credit Acceptance from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, July 16th. Finally, TD Cowen raised their target price 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 research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, Credit Acceptance has an average rating of "Hold" and a consensus price target of $570.00.

Insiders Place Their Bets

In related news, insider Erin J. Kerber sold 8,656 shares of the stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $600.94, for a total transaction of $5,201,736.64. Following the completion of the sale, the insider owned 25,711 shares in the company, valued at $15,450,768.34. This represents a 25.19% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jonathan Lum sold 6,000 shares of the company's stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $600.00, for a total value of $3,600,000.00. Following the transaction, 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 44,289 shares of company stock valued at $27,525,241 in the last ninety days. Company insiders own 6.10% of the company's stock.

Credit Acceptance Trading Up 0.8%

NASDAQ:CACC opened at $599.74 on Tuesday. The company has a debt-to-equity ratio of 3.84, a quick ratio of 14.89 and a current ratio of 14.89. Credit Acceptance Corporation has a 52 week low of $401.90 and a 52 week high of $668.86. The stock's 50 day moving average price is $602.89 and its 200 day moving average price is $540.07. The company has a market capitalization of $6.27 billion, a P/E ratio of 13.19 and a beta of 1.37.

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

Credit Acceptance 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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