Credit Acceptance Corporation $CACC Shares Sold by Vanguard Group Inc.

Key Points

• Vanguard Group reduced its stake in Credit Acceptance by 11.6% in the fourth quarter, selling 52,082 shares and leaving it with about 395,474 shares worth roughly $175.4 million.
• Institutional ownership remains high, with several firms making large moves in CACC and hedge funds/institutions holding about 81.7% of the stock overall.
• Credit Acceptance reported mixed quarterly results, with EPS of $10.71 slightly missing estimates and revenue of $406 million coming in well below expectations, even as revenue rose 1.6% year over year.

Vanguard Group Inc. cut its stake in shares of Credit Acceptance Corporation (NASDAQ:CACC - Free Report) by 11.6% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 395,474 shares of the credit services provider's stock after selling 52,082 shares during the period. Vanguard Group Inc. owned approximately 3.59% of Credit Acceptance worth $175,377,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in the stock. M&T Bank Corp purchased a new position in shares of Credit Acceptance in the fourth quarter valued at approximately $208,294,000. Boston Partners purchased a new position in shares of Credit Acceptance in the third quarter valued at approximately $206,327,000. 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 purchasing an additional 31,438 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH boosted its stake in shares of Credit Acceptance by 764.8% in the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 203,879 shares of the credit services provider's stock valued at $91,652,000 after purchasing an additional 180,304 shares during the period. Finally, Dimensional Fund Advisors LP boosted its stake in shares of Credit Acceptance by 4.4% in the third quarter. Dimensional Fund Advisors LP now owns 203,861 shares of the credit services provider's stock valued at $95,171,000 after purchasing an additional 8,573 shares during the period. 81.71% of the stock is currently owned by institutional investors and hedge funds.

Credit Acceptance Price Performance

Shares of Credit Acceptance stock opened at $533.15 on Monday. Credit Acceptance Corporation has a 52-week low of $401.90 and a 52-week high of $565.14. The company has a 50 day moving average of $478.16 and a 200 day moving average of $469.49. The company has a quick ratio of 13.62, a current ratio of 13.62 and a debt-to-equity ratio of 4.09. The company has a market capitalization of $5.58 billion, a P/E ratio of 13.25 and a beta of 1.36.

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

Insider Buying and Selling

In related news, major shareholder Jill Foss Watson sold 9,450 shares of Credit Acceptance stock in a transaction that occurred on Tuesday, April 21st. The shares were sold at an average price of $538.52, for a total value of $5,089,014.00. Following the completion of the transaction, the insider owned 92,107 shares in the company, valued at $49,601,461.64. The trade was a 9.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Kenneth Booth sold 4,000 shares of Credit Acceptance stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $534.00, for a total transaction of $2,136,000.00. Following the completion of the transaction, the director owned 22,832 shares of the company's stock, valued at $12,192,288. This represents a 14.91% decrease in their position. 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 have sold 26,527 shares of company stock valued at $14,203,265 over the last ninety days. 6.10% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

CACC has been the subject of several recent research reports. Stephens raised their price objective on shares of Credit Acceptance from $450.00 to $540.00 and gave the company an "equal weight" rating in a research note on Friday, April 17th. TD Cowen raised their price objective on shares of Credit Acceptance from $450.00 to $500.00 and gave the company a "hold" rating in a research note on Wednesday. Zacks Research raised shares of Credit Acceptance from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, February 3rd. Finally, Weiss Ratings raised shares of Credit Acceptance from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $520.00.

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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