Credit Acceptance Corporation $CACC is Gobi Capital LLC's 2nd Largest Position

Key Points

• Gobi Capital LLC reduced its stake in Credit Acceptance Corporation by 1.4% in Q1, selling 5,500 shares and holding a total of 399,668 shares, valuing approximately $206.37 million.
• Other institutional investors have also adjusted their positions, with notable increases from Point72 Asia Singapore Pte. Ltd., which grew its holdings by 13,400% recently.
• Credit Acceptance reported disappointing earnings, missing EPS estimates with $8.56 compared to the consensus of $9.84, but showed a year-over-year revenue increase of 8.5%.

Gobi Capital LLC lowered its stake in shares of Credit Acceptance Corporation (NASDAQ:CACC - Free Report) by 1.4% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 399,668 shares of the credit services provider's stock after selling 5,500 shares during the quarter. Credit Acceptance comprises 11.8% of Gobi Capital LLC's holdings, making the stock its 2nd largest holding. Gobi Capital LLC owned 3.44% of Credit Acceptance worth $206,369,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Trexquant Investment LP bought a new position in Credit Acceptance in the first quarter worth about $436,000. Gabelli Funds LLC grew its position in shares of Credit Acceptance by 380.0% in the 1st quarter. Gabelli Funds LLC now owns 3,600 shares of the credit services provider's stock worth $1,859,000 after buying an additional 2,850 shares during the last quarter. FORA Capital LLC bought a new position in shares of Credit Acceptance during the 1st quarter worth approximately $327,000. Jump Financial LLC bought a new position in shares of Credit Acceptance during the 1st quarter worth approximately $213,000. Finally, AlphaQuest LLC boosted its stake in Credit Acceptance by 16.4% in the first quarter. AlphaQuest LLC now owns 1,200 shares of the credit services provider's stock valued at $620,000 after acquiring an additional 169 shares in the last quarter. Hedge funds and other institutional investors own 81.71% of the company's stock.

Insiders Place Their Bets

In other news, COO Jonathan Lum sold 6,000 shares of the business's stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $512.61, for a total transaction of $3,075,660.00. Following the sale, the chief operating officer owned 31,493 shares in the company, valued at approximately $16,143,626.73. The trade was a 16.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, major shareholder Jill Foss Watson sold 20,000 shares of the company's stock in a transaction dated 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 transaction, the insider owned 102,107 shares in the company, valued at approximately $55,134,716.79. This trade represents a 16.38% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 36,428 shares of company stock worth $19,262,627 in the last three months. Insiders own 6.60% of the company's stock.

Credit Acceptance Stock Down 0.5%

NASDAQ CACC traded down $2.61 on Tuesday, hitting $512.12. The stock had a trading volume of 73,612 shares, compared to its average volume of 115,240. The business's fifty day moving average price is $501.16 and its 200 day moving average price is $494.43. The stock has a market cap of $5.76 billion, a price-to-earnings ratio of 14.76 and a beta of 1.25. The company has a debt-to-equity ratio of 4.16, a current ratio of 22.03 and a quick ratio of 22.03. Credit Acceptance Corporation has a 52-week low of $409.22 and a 52-week high of $560.00.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last posted its quarterly earnings data 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). Credit Acceptance had a return on equity of 27.06% and a net margin of 18.69%.The business had revenue of $583.80 million during the quarter, compared to analyst estimates of $583.30 million. During the same period in the previous year, the business earned $10.29 EPS. The firm's revenue for the quarter was up 8.5% compared to the same quarter last year. Equities research analysts anticipate that Credit Acceptance Corporation will post 53.24 earnings per share 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.