Credit Acceptance Corporation $CACC Shares Sold by Engineers Gate Manager LP

Key Points

• Engineers Gate Manager LP cut its Credit Acceptance stake by 39.4% in the second quarter, selling 1,710 shares and retaining 2,626 shares valued at approximately $1.67 million.
• Institutional ownership remains high at 81.71%, with major investors including BlackRock, Bank of New York Mellon, Corient Private Wealth and Redwood Investment Management adding new positions.
• CACC shares opened at $601.54, while analysts maintain a consensus “Hold” rating and a $570 price target. The company’s latest quarterly earnings missed estimates slightly, reporting $12.12 in EPS versus the $12.20 consensus.

Engineers Gate Manager LP reduced its holdings in Credit Acceptance Corporation (NASDAQ:CACC - Free Report) by 39.4% during the second quarter, according to the company in its most recent filing with the SEC. The fund owned 2,626 shares of the credit services provider's stock after selling 1,710 shares during the quarter. Engineers Gate Manager LP's holdings in Credit Acceptance were worth $1,672,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also modified their holdings of the business. Bank of New York Mellon Corp acquired a new stake in shares of Credit Acceptance during the 2nd quarter worth approximately $19,347,000. Corient Private Wealth LP acquired a new position in Credit Acceptance during the 2nd quarter valued at approximately $856,000. BlackRock Inc. acquired a new position in Credit Acceptance during the 2nd quarter valued at approximately $408,849,000. SG Americas Securities LLC grew its stake in Credit Acceptance by 429.9% during the 1st quarter. SG Americas Securities LLC now owns 12,835 shares of the credit services provider's stock worth $5,435,000 after buying an additional 10,413 shares during the last quarter. Finally, Redwood Investment Management LLC bought a new position in Credit Acceptance during the 2nd quarter worth $1,158,000. 81.71% of the stock is owned by institutional investors and hedge funds.

Credit Acceptance Stock Up 0.2%

Shares of CACC stock opened at $601.54 on Thursday. Credit Acceptance Corporation has a 1 year low of $401.90 and a 1 year high of $668.86. 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 business's fifty day moving average is $594.83 and its 200-day moving average is $549.31. The stock has a market cap of $6.29 billion, a PE ratio of 13.23 and a beta of 1.35.

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

Analysts Set New Price Targets

CACC has been the subject of several recent research reports. TD Cowen upped their price target on shares of Credit Acceptance from $575.00 to $600.00 and gave the stock a "hold" rating in a research report on Wednesday, August 5th. Weiss Ratings upgraded shares of Credit Acceptance from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, July 16th. One analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Credit Acceptance presently has an average rating of "Hold" and a consensus target price of $570.00.

Insider Transactions at Credit Acceptance

In other news, insider Erin J. Kerber sold 5,720 shares of the firm's stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $629.80, for a total transaction of $3,602,456.00. Following the completion of the transaction, the insider owned 25,711 shares in the company, valued at approximately $16,192,787.80. This trade represents a 18.20% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jay D. Martin sold 3,000 shares of Credit Acceptance stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $601.04, for a total transaction of $1,803,120.00. Following the completion of the transaction, the chief financial officer directly owned 25,963 shares in the company, valued at $15,604,801.52. This represents a 10.36% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 44,289 shares of company stock valued at $27,525,241 in the last quarter. 6.10% of the stock is owned by company insiders.

Credit Acceptance Company Profile

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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