London Co. of Virginia Sells 20,976 Shares of Credit Acceptance Corporation $CACC

Key Points

• London Co. of Virginia reduced its Credit Acceptance stake by 20.9% in the fourth quarter, selling 20,976 shares and leaving it with 79,337 shares worth about $35.2 million.
• Credit Acceptance reported Q1 earnings of $10.71 per share, slightly below analyst expectations, while revenue came in well under forecasts at $406 million despite modest year-over-year growth.
• Analysts remain mostly cautious on the stock, with several firms recently adjusting targets but keeping an overall Hold consensus and an average price target of $520.

London Co. of Virginia trimmed its stake in Credit Acceptance Corporation (NASDAQ:CACC - Free Report) by 20.9% during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 79,337 shares of the credit services provider's stock after selling 20,976 shares during the period. London Co. of Virginia owned approximately 0.72% of Credit Acceptance worth $35,186,000 as of its most recent SEC filing.

Other institutional investors also recently modified their holdings of the company. Illinois Municipal Retirement Fund bought a new position in shares of Credit Acceptance in the third quarter worth approximately $697,000. State of Alaska Department of Revenue bought a new position in shares of Credit Acceptance in the fourth quarter worth approximately $462,000. M&T Bank Corp bought a new position in shares of Credit Acceptance in the fourth quarter worth approximately $208,294,000. Universal Beteiligungs und Servicegesellschaft mbH increased its position 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 worth $91,652,000 after purchasing an additional 180,304 shares during the last quarter. Finally, Geo Capital Gestora de Recursos Ltd bought a new position in shares of Credit Acceptance in the fourth quarter worth approximately $1,842,000. 81.71% of the stock is currently owned by institutional investors.

Credit Acceptance Stock Up 0.2%

Shares of NASDAQ CACC opened at $574.10 on Wednesday. Credit Acceptance Corporation has a one year low of $401.90 and a one year high of $583.86. The company has a debt-to-equity ratio of 4.09, a current ratio of 13.62 and a quick ratio of 13.62. The firm's 50 day simple moving average is $528.60 and its two-hundred day simple moving average is $488.70. The stock has a market capitalization of $6.01 billion, a P/E ratio of 14.27 and a beta of 1.38.

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

Insider Transactions at Credit Acceptance

In other news, COO Jonathan Lum sold 3,000 shares of the firm's stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $535.00, for a total value of $1,605,000.00. Following the transaction, the chief operating officer owned 31,609 shares in the company, valued at approximately $16,910,815. This trade 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 accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Wendy A. Rummler sold 4,062 shares of the firm's stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $525.67, for a total transaction of $2,135,271.54. Following the completion of the transaction, the insider owned 19,547 shares in the company, valued at $10,275,271.49. This represents a 17.21% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 26,527 shares of company stock valued at $14,203,265. 6.10% of the stock is currently owned by insiders.

Analysts Set New Price Targets

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