Smead Capital Management Inc. Has $95.72 Million Position in Credit Acceptance Corporation $CACC

Key Points

• Smead Capital Management Inc. decreased its holdings in Credit Acceptance Corporation by 8.6% in the first quarter, now owning approximately 185,373 shares valued at around $95.7 million.
• Credit Acceptance reported an earnings per share (EPS) of $8.56 for the last quarter, missing analysts' estimates by $1.28, though revenue increased by 8.5% year-over-year.
• Insider sales included major shareholder Jill Foss Watson selling 20,000 shares for $10.8 million, reflecting a 16.38% decrease in her position.

Smead Capital Management Inc. decreased its stake in Credit Acceptance Corporation (NASDAQ:CACC - Free Report) by 8.6% in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 185,373 shares of the credit services provider's stock after selling 17,534 shares during the quarter. Credit Acceptance accounts for about 1.6% of Smead Capital Management Inc.'s investment portfolio, making the stock its 22nd largest holding. Smead Capital Management Inc. owned 1.60% of Credit Acceptance worth $95,717,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. New York State Common Retirement Fund grew its position in Credit Acceptance by 0.7% during the first quarter. New York State Common Retirement Fund now owns 3,780 shares of the credit services provider's stock valued at $1,952,000 after purchasing an additional 27 shares in the last quarter. Linden Thomas Advisory Services LLC boosted its stake in shares of Credit Acceptance by 2.8% during the 1st quarter. Linden Thomas Advisory Services LLC now owns 1,690 shares of the credit services provider's stock valued at $873,000 after buying an additional 46 shares during the period. Sierra Ocean LLC purchased a new position in shares of Credit Acceptance during the 1st quarter valued at $26,000. US Bancorp DE increased its stake in shares of Credit Acceptance by 35.8% in the first quarter. US Bancorp DE now owns 243 shares of the credit services provider's stock worth $125,000 after acquiring an additional 64 shares during the last quarter. Finally, Rhumbline Advisers raised its holdings in shares of Credit Acceptance by 0.8% during the first quarter. Rhumbline Advisers now owns 9,122 shares of the credit services provider's stock worth $4,710,000 after acquiring an additional 70 shares in the last quarter. 81.71% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, insider Daniel A. Ulatowski sold 6,356 shares of the firm's stock in a transaction that occurred on Wednesday, June 11th. The stock was sold at an average price of $522.16, for a total value of $3,318,848.96. Following the transaction, the insider directly owned 28,290 shares of the company's stock, valued at approximately $14,771,906.40. This trade represents a 18.35% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, COO Jonathan Lum sold 6,000 shares of the business's stock in a transaction that occurred on Monday, August 25th. The stock was sold at an average price of $512.61, for a total value of $3,075,660.00. Following the completion of the sale, the chief operating officer owned 31,493 shares of the company's stock, valued at approximately $16,143,626.73. This trade represents a 16.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 36,428 shares of company stock worth $19,262,627. Insiders own 6.60% of the company's stock.

Credit Acceptance Stock Down 0.6%

Shares of CACC traded down $2.95 during midday trading on Tuesday, reaching $511.79. 60,631 shares of the stock were exchanged, compared to its average volume of 115,085. The company has a market cap of $5.75 billion, a price-to-earnings ratio of 14.75 and a beta of 1.25. The company has a quick ratio of 22.03, a current ratio of 22.03 and a debt-to-equity ratio of 4.16. Credit Acceptance Corporation has a 12-month low of $409.22 and a 12-month high of $560.00. The firm has a 50 day simple moving average of $501.16 and a 200-day simple moving average of $494.43.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The credit services provider reported $8.56 earnings per share for the quarter, missing the consensus estimate of $9.84 by ($1.28). The business had revenue of $583.80 million for the quarter, compared to the consensus estimate of $583.30 million. Credit Acceptance had a net margin of 18.69% and a return on equity of 27.06%. Credit Acceptance's revenue was up 8.5% compared to the same quarter last year. During the same period in the previous year, the business posted $10.29 EPS. Research analysts forecast that Credit Acceptance Corporation will post 53.24 EPS for the current year.

About Credit Acceptance

Credit Acceptance Corporation engages in the provision of financing programs, and related products and services in the United States. The company advances money to automobile dealers in exchange for the right to service the underlying consumer loans; and buys the consumer loans from the dealers and keeps the amount collected from the consumers.