Credit Acceptance Corporation $CACC Shares Sold by Goodnow Investment Group LLC

Key Points

• Goodnow Investment Group trimmed its Credit Acceptance stake by 2.3% in Q4, but still held 116,791 shares worth about $51.8 million, making CACC its 9th-largest holding.
• Credit Acceptance shares rose 4.5% to $572.79, near their 52-week high of $579.79, with the stock trading at a market cap of about $5.99 billion.
• The company missed quarterly earnings and revenue expectations, reporting EPS of $10.71 versus $10.73 expected and revenue of $406 million versus $580.77 million expected, while analysts currently rate the stock Hold with a $520 average target.

Goodnow Investment Group LLC trimmed its position in shares of Credit Acceptance Corporation (NASDAQ:CACC - Free Report) by 2.3% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 116,791 shares of the credit services provider's stock after selling 2,810 shares during the period. Credit Acceptance makes up about 4.8% of Goodnow Investment Group LLC's holdings, making the stock its 9th biggest holding. Goodnow Investment Group LLC owned 1.06% of Credit Acceptance worth $51,792,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also made changes to their positions in CACC. State of Wyoming acquired a new stake in shares of Credit Acceptance during the 4th quarter worth $27,000. Kestra Advisory Services LLC purchased a new stake in Credit Acceptance during the 4th quarter worth $27,000. Allworth Financial LP boosted its position in Credit Acceptance by 141.9% during the 3rd quarter. Allworth Financial LP now owns 104 shares of the credit services provider's stock worth $49,000 after purchasing an additional 61 shares during the period. Vestcor Inc purchased a new stake in Credit Acceptance during the 3rd quarter worth $50,000. Finally, Covestor Ltd boosted its position in Credit Acceptance by 775.0% during the 4th quarter. Covestor Ltd now owns 175 shares of the credit services provider's stock worth $78,000 after purchasing an additional 155 shares during the period. 81.71% of the stock is currently owned by institutional investors and hedge funds.

Credit Acceptance Stock Up 4.5%

Shares of Credit Acceptance stock opened at $572.79 on Tuesday. The company has a fifty day moving average price of $525.45 and a 200 day moving average price of $487.83. The company has a current ratio of 13.62, a quick ratio of 13.62 and a debt-to-equity ratio of 4.09. Credit Acceptance Corporation has a twelve month low of $401.90 and a twelve month high of $579.79. The stock has a market cap of $5.99 billion, a price-to-earnings ratio of 14.23 and a beta of 1.38.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share for the quarter, missing analysts' consensus estimates of $10.73 by ($0.02). The business had revenue of $406.00 million for the quarter, compared to analysts' expectations of $580.77 million. Credit Acceptance had a return on equity of 29.95% and a net margin of 19.49%.The firm's revenue for the quarter was up 1.6% on a year-over-year basis. During the same period last year, the company posted $9.35 earnings per share. Equities research analysts forecast that Credit Acceptance Corporation will post 47.5 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on CACC. TD Cowen upped their price target on shares of Credit Acceptance from $450.00 to $500.00 and gave the stock a "hold" rating in a research report on Wednesday, May 6th. Stephens upped their price target on shares of Credit Acceptance from $450.00 to $540.00 and gave the stock an "equal weight" rating in a research report on Friday, April 17th. Zacks Research cut shares of Credit Acceptance from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, May 13th. Finally, Weiss Ratings raised shares of Credit Acceptance from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, May 8th. Four equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, Credit Acceptance has a consensus rating of "Hold" and a consensus target price of $520.00.

Insider Buying and Selling

In other Credit Acceptance news, CFO Jay D. Martin sold 3,000 shares of the company's stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $525.63, for a total value of $1,576,890.00. Following the completion of the transaction, the chief financial officer directly owned 25,963 shares of the company's stock, valued at $13,646,931.69. This represents a 10.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Wendy A. Rummler sold 4,062 shares of the company's stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $525.67, for a total transaction of $2,135,271.54. Following the completion of the transaction, the insider directly owned 19,547 shares of the company's stock, valued at approximately $10,275,271.49. The trade was a 17.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 26,527 shares of company stock worth $14,203,265 over the last quarter. Company insiders own 6.10% of the company's stock.

Credit Acceptance Company 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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