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 grew its stake in Credit Acceptance Corporation (NASDAQ:CACC - Free Report) by 11.8% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 190,000 shares of the credit services provider's stock after purchasing an additional 20,000 shares during the period. Credit Acceptance makes up about 31.2% of Alfreton Capital LLP's holdings, making the stock its largest holding. Alfreton Capital LLP owned approximately 1.64% of Credit Acceptance worth $98,106,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors have also recently made changes to their positions in CACC. Sierra Ocean LLC purchased a new stake in Credit Acceptance in the first quarter valued at approximately $26,000. CX Institutional purchased a new position in Credit Acceptance in the first quarter valued at $36,000. Harbor Capital Advisors Inc. acquired a new position in Credit Acceptance during the 1st quarter worth $49,000. Point72 Asia Singapore Pte. Ltd. increased its holdings in Credit Acceptance by 13,400.0% during the 4th quarter. Point72 Asia Singapore Pte. Ltd. now owns 135 shares of the credit services provider's stock worth $64,000 after purchasing an additional 134 shares during the period. Finally, CWM LLC raised its position in Credit Acceptance by 206.3% in the 1st quarter. CWM LLC now owns 193 shares of the credit services provider's stock valued at $100,000 after purchasing an additional 130 shares in the last quarter. Institutional investors and hedge funds own 81.71% of the company's stock.

Insider Transactions at Credit Acceptance

In related news, insider Andrew K. Rostami sold 375 shares of the company's stock in a transaction that occurred on Friday, June 20th. The stock was sold at an average price of $505.29, for a total value of $189,483.75. Following the completion of the transaction, the insider directly owned 25,478 shares of the company's stock, valued at $12,873,778.62. This represents a 1.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, major shareholder Jill Foss Watson sold 20,000 shares of the stock in a transaction that occurred on Wednesday, July 2nd. The shares were sold at an average price of $539.97, for a total transaction of $10,799,400.00. Following the completion of the transaction, the insider owned 102,107 shares in the company, valued at $55,134,716.79. This represents a 16.38% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 26,731 shares of company stock valued at $14,307,733. Corporate insiders own 5.30% of the company's stock.

Credit Acceptance Stock Up 2.3%

Shares of Credit Acceptance stock traded up $10.39 on Wednesday, reaching $461.33. 57,167 shares of the company were exchanged, compared to its average volume of 115,715. Credit Acceptance Corporation has a 1-year low of $409.22 and a 1-year high of $560.00. The stock's 50 day moving average price is $503.60 and its 200-day moving average price is $497.77. The company has a debt-to-equity ratio of 4.16, a current ratio of 22.03 and a quick ratio of 22.03. The company has a market cap of $5.19 billion, a P/E ratio of 13.32 and a beta of 1.13.

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

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.