Alfreton Capital LLP Acquires 20,000 Shares of Credit Acceptance Corporation (NASDAQ:CACC)

Key Points

• Alfreton Capital LLP increased its stake in Credit Acceptance Corporation by 11.8%, making it the largest holding in their portfolio with approximately 31.2% of their investments dedicated to the company.
• Insider trading activity included sales by Daniel A. Ulatowski and Andrew K. Rostami, with Ulatowski reducing his position by 18.35% after selling shares worth over $3.3 million.
• Credit Acceptance Corporation's latest earnings reported an EPS of $8.56, missing estimates but showing an 8.5% year-on-year revenue increase despite a decline compared to the previous year's EPS of $10.29.

Alfreton Capital LLP increased its stake in Credit Acceptance Corporation (NASDAQ:CACC - Free Report) by 11.8% in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 190,000 shares of the credit services provider's stock after purchasing an additional 20,000 shares during the quarter. Credit Acceptance accounts for 31.2% of Alfreton Capital LLP's investment portfolio, making the stock its largest position. Alfreton Capital LLP owned approximately 1.64% of Credit Acceptance worth $98,106,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also recently made changes to their positions in CACC. London Co. of Virginia purchased a new position in shares of Credit Acceptance in the fourth quarter valued at $48,148,000. Crow s Nest Holdings LP purchased a new position in shares of Credit Acceptance in the fourth quarter valued at $35,210,000. Twin Lions Management LLC purchased a new position in shares of Credit Acceptance in the fourth quarter valued at $21,093,000. Millennium Management LLC increased its position in shares of Credit Acceptance by 708.8% in the fourth quarter. Millennium Management LLC now owns 43,426 shares of the credit services provider's stock valued at $20,387,000 after buying an additional 38,057 shares in the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in shares of Credit Acceptance in the first quarter valued at $12,999,000. Institutional investors and hedge funds own 81.71% of the company's stock.

Credit Acceptance Price Performance

Credit Acceptance stock traded up $0.69 during midday trading on Monday, reaching $448.20. 144,093 shares of the company were exchanged, compared to its average volume of 116,061. The company has a market capitalization of $5.20 billion, a price-to-earnings ratio of 12.92 and a beta of 1.13. The firm's 50-day simple moving average is $505.02 and its 200-day simple moving average is $498.35. Credit Acceptance Corporation has a 1 year low of $409.22 and a 1 year high of $560.00. The company has a debt-to-equity ratio of 4.16, a quick ratio of 22.03 and a current ratio of 22.03.

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

Insider Buying and Selling

In other Credit Acceptance news, major shareholder Jill Foss Watson sold 20,000 shares of the firm's stock in a transaction dated Wednesday, July 2nd. The stock was sold at an average price of $539.97, for a total value of $10,799,400.00. Following the sale, the insider directly owned 102,107 shares of the company's stock, valued at approximately $55,134,716.79. This trade represents a 16.38% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Daniel A. Ulatowski sold 6,356 shares of the firm's stock in a transaction dated 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 completion of the sale, the insider directly owned 28,290 shares in the company, valued at approximately $14,771,906.40. The trade was a 18.35% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 26,731 shares of company stock worth $14,307,733. 5.30% of the stock is owned by corporate insiders.

Credit Acceptance Company Profile

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.