Mraz Amerine & Associates Inc. Cuts Stock Position in Credit Acceptance Corporation $CACC

Key Points

• Mraz Amerine & Associates cut its Credit Acceptance stake by 36.5% in the second quarter, selling 4,819 shares and retaining 8,376 shares valued at approximately $5.33 million. Institutional investors collectively own 81.71% of the company.
• Credit Acceptance shares fell 1.8% to $593.78, while the company’s latest earnings missed expectations: adjusted EPS was $12.12 versus a $12.20 consensus estimate, and revenue totaled $415 million versus $588.07 million expected.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and a $570 target price. Meanwhile, company insiders sold 44,289 shares worth approximately $27.5 million over the last quarter.

Mraz Amerine & Associates Inc. cut its stake in shares of Credit Acceptance Corporation (NASDAQ:CACC - Free Report) by 36.5% in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 8,376 shares of the credit services provider's stock after selling 4,819 shares during the quarter. Credit Acceptance makes up approximately 0.7% of Mraz Amerine & Associates Inc.'s portfolio, making the stock its 22nd biggest position. Mraz Amerine & Associates Inc. owned 0.08% of Credit Acceptance worth $5,333,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. State of Wyoming acquired a new stake in shares of Credit Acceptance in the 4th quarter valued at approximately $27,000. Kestra Advisory Services LLC acquired a new position in Credit Acceptance during the 4th quarter worth approximately $27,000. Parallel Advisors LLC boosted its holdings in Credit Acceptance by 590.0% in the first quarter. Parallel Advisors LLC now owns 69 shares of the credit services provider's stock valued at $29,000 after purchasing an additional 59 shares during the last quarter. Altshuler Shaham Ltd raised its stake in shares of Credit Acceptance by 37.3% in the 1st quarter. Altshuler Shaham Ltd now owns 70 shares of the credit services provider's stock valued at $30,000 after purchasing an additional 19 shares in the last quarter. Finally, Rockefeller Capital Management L.P. increased its holdings in shares of Credit Acceptance by 53.3% in the 4th quarter. Rockefeller Capital Management L.P. now owns 69 shares of the credit services provider's stock valued at $31,000 after acquiring an additional 24 shares during the last quarter. Institutional investors and hedge funds own 81.71% of the company's stock.

Credit Acceptance Trading Down 1.8%

NASDAQ:CACC traded down $10.94 during trading hours on Tuesday, hitting $593.78. 155,960 shares of the stock were exchanged, compared to its average volume of 173,102. The company has a market capitalization of $6.21 billion, a P/E ratio of 13.06 and a beta of 1.35. The company has a quick ratio of 14.89, a current ratio of 14.89 and a debt-to-equity ratio of 3.84. Credit Acceptance Corporation has a twelve month low of $401.90 and a twelve month high of $668.86. The company's 50 day moving average is $601.47 and its two-hundred day moving average is $544.00.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last issued its earnings results on Tuesday, August 4th. The credit services provider reported $12.12 EPS for the quarter, missing the consensus estimate of $12.20 by ($0.08). The firm had revenue of $415.00 million during the quarter, compared to the consensus estimate of $588.07 million. Credit Acceptance had a net margin of 21.54% and a return on equity of 31.67%. The firm's revenue for the quarter was up .6% on a year-over-year basis. During the same period in the previous year, the company posted $10.05 EPS. On average, sell-side analysts anticipate that Credit Acceptance Corporation will post 47.8 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on CACC shares. TD Cowen increased their target price on shares of Credit Acceptance from $575.00 to $600.00 and gave the company a "hold" rating in a research report on Wednesday, August 5th. Weiss Ratings upgraded Credit Acceptance from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, July 16th. Finally, Zacks Research lowered shares of Credit Acceptance from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, May 13th. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $570.00.

Insider Activity at Credit Acceptance

In other news, COO Jonathan Lum sold 6,000 shares of the business's stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $600.00, for a total transaction of $3,600,000.00. Following the transaction, the chief operating officer directly owned 31,609 shares in the company, valued at $18,965,400. The trade was a 15.95% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jay Martin sold 3,000 shares of the firm's stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $601.04, for a total transaction of $1,803,120.00. Following the sale, the chief financial officer owned 25,963 shares of the company's stock, valued at approximately $15,604,801.52. This represents a 10.36% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 44,289 shares of company stock worth $27,525,241. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.