Geo Capital Gestora de Recursos Ltd Buys Shares of 4,153 Credit Acceptance Corporation $CACC

Key Points

• Geo Capital Gestora de Recursos Ltd opened a new position in Credit Acceptance, buying 4,153 shares valued at about $1.84 million. The stake represents 3.8% of the fund’s portfolio and is its 16th-largest holding.
• Institutional ownership in Credit Acceptance remains very high at 81.71%, with several other hedge funds and investors also adding or building positions during recent quarters.
• Wall Street sentiment is mixed but cautious: analysts currently have a consensus “Hold” rating on CACC with an average price target of $520, while the stock recently traded at $548.15 after a small decline.

Geo Capital Gestora de Recursos Ltd bought a new stake in shares of Credit Acceptance Corporation (NASDAQ:CACC - Free Report) during the 4th quarter, according to the company in its most recent disclosure with the SEC. The fund bought 4,153 shares of the credit services provider's stock, valued at approximately $1,842,000. Credit Acceptance makes up 3.8% of Geo Capital Gestora de Recursos Ltd's portfolio, making the stock its 16th biggest position.

Several other institutional investors and hedge funds also recently bought and sold shares of the business. M&T Bank Corp purchased a new position in Credit Acceptance during the 4th quarter valued at about $208,294,000. Boston Partners purchased a new position in Credit Acceptance during the 3rd quarter valued at about $206,327,000. Dimensional Fund Advisors LP grew its stake in Credit Acceptance by 9.8% during the 4th quarter. Dimensional Fund Advisors LP now owns 223,872 shares of the credit services provider's stock valued at $99,284,000 after acquiring an additional 20,011 shares in the last quarter. Smead Capital Management Inc. grew its stake in Credit Acceptance by 17.0% during the 2nd quarter. Smead Capital Management Inc. now owns 216,811 shares of the credit services provider's stock valued at $110,450,000 after acquiring an additional 31,438 shares in the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH grew its stake in Credit Acceptance by 764.8% during the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 203,879 shares of the credit services provider's stock valued at $91,652,000 after acquiring an additional 180,304 shares in the last quarter. Hedge funds and other institutional investors own 81.71% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on CACC. Weiss Ratings raised Credit Acceptance from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, May 8th. TD Cowen lifted their target price on Credit Acceptance from $450.00 to $500.00 and gave the company a "hold" rating in a research note on Wednesday, May 6th. Zacks Research cut Credit Acceptance from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, May 13th. Finally, Stephens boosted their price target on Credit Acceptance from $450.00 to $540.00 and gave the company an "equal weight" rating in a research note on Friday, April 17th. Four analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $520.00.

Credit Acceptance Trading Down 0.1%

Shares of NASDAQ CACC opened at $548.15 on Friday. The stock has a market cap of $5.73 billion, a price-to-earnings ratio of 13.62 and a beta of 1.38. The business has a 50 day simple moving average of $522.33 and a 200 day simple moving average of $486.63. Credit Acceptance Corporation has a 52 week low of $401.90 and a 52 week high of $579.79. The company has a debt-to-equity ratio of 4.09, a quick ratio of 13.62 and a current ratio of 13.62.

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

Insiders Place Their Bets

In other Credit Acceptance news, COO Jonathan Lum sold 3,000 shares of the company's stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $535.00, for a total transaction of $1,605,000.00. Following the completion of the sale, the chief operating officer owned 31,609 shares of the company's stock, valued at $16,910,815. This represents a 8.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Jill Foss Watson sold 9,450 shares of the company's stock in a transaction that occurred on Tuesday, April 21st. The stock was sold at an average price of $538.52, for a total value of $5,089,014.00. Following the sale, the insider directly owned 92,107 shares of the company's stock, valued at $49,601,461.64. The trade was a 9.31% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 26,527 shares of company stock worth $14,203,265 in the last quarter. Corporate insiders own 6.10% of the company's stock.

Credit Acceptance 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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