Beacon Pointe Advisors LLC Takes Position in Credit Acceptance Corporation $CACC

Key Points

• Beacon Pointe Advisors acquired 1,723 shares of Credit Acceptance, valued at approximately $1.1 million, while institutional investors collectively own 81.71% of the company.
• Analyst sentiment remains cautious: CACC carries an average “Hold” rating and a $570 price target, despite TD Cowen raising its target to $600.
• Credit Acceptance reported quarterly EPS of $12.12, slightly below the $12.20 consensus, while revenue of $415 million fell well short of the $588.07 million estimate; insiders sold $27.5 million of stock over the past 90 days.

Beacon Pointe Advisors LLC purchased a new stake in Credit Acceptance Corporation (NASDAQ:CACC - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 1,723 shares of the credit services provider's stock, valued at approximately $1,097,000.

Other hedge funds have also bought and sold shares of the company. BlackRock Inc. bought a new stake in Credit Acceptance in the 2nd quarter valued at about $408,849,000. Boston Partners raised its position in shares of Credit Acceptance by 3.4% in the fourth quarter. Boston Partners now owns 456,253 shares of the credit services provider's stock valued at $202,373,000 after buying an additional 14,877 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of Credit Acceptance by 3.1% in the first quarter. Dimensional Fund Advisors LP now owns 230,715 shares of the credit services provider's stock valued at $97,701,000 after buying an additional 6,843 shares during the period. Smead Capital Management Inc. boosted its stake in shares of Credit Acceptance by 17.0% in the second quarter. Smead Capital Management Inc. now owns 216,811 shares of the credit services provider's stock valued at $110,450,000 after buying an additional 31,438 shares during the period. Finally, Goodnow Investment Group LLC acquired a new stake in Credit Acceptance during the second quarter worth approximately $67,578,000. 81.71% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several brokerages have weighed in on CACC. Zacks Research cut Credit Acceptance from a "strong-buy" rating to a "hold" rating in a report on Wednesday, May 13th. Weiss Ratings upgraded Credit Acceptance from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, July 16th. Finally, TD Cowen boosted their price target on Credit Acceptance from $575.00 to $600.00 and gave the company a "hold" rating in a research note on Wednesday, August 5th. One investment 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 an average price target of $570.00.

Credit Acceptance Stock Performance

Shares of CACC opened at $594.89 on Monday. Credit Acceptance Corporation has a 52-week low of $401.90 and a 52-week high of $668.86. The business's fifty day moving average is $602.44 and its 200-day moving average is $539.42. The company has a debt-to-equity ratio of 3.84, a quick ratio of 14.89 and a current ratio of 14.89. The firm has a market cap of $6.22 billion, a price-to-earnings ratio of 13.08 and a beta of 1.37.

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). The business had revenue of $415.00 million for the quarter, compared to analyst estimates of $588.07 million. Credit Acceptance had a return on equity of 31.67% and a net margin of 21.54%.Credit Acceptance's quarterly revenue was up .6% on a year-over-year basis. During the same period last year, the firm posted $10.05 EPS. Equities analysts anticipate that Credit Acceptance Corporation will post 47.8 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Erin J. Kerber sold 8,656 shares of the company's stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $600.94, for a total value of $5,201,736.64. Following the completion of the transaction, the insider owned 25,711 shares of the company's stock, valued at $15,450,768.34. This represents a 25.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Jill Foss Watson sold 11,000 shares of the firm's stock in a transaction that occurred 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 completion of the transaction, the insider owned 49,346 shares of the company's stock, valued at approximately $32,234,781.04. This trade represents a 18.23% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 44,289 shares of company stock worth $27,525,241 in the last ninety days. Insiders own 6.10% of the company's stock.

About Credit Acceptance

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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