Philadelphia Financial Management of San Francisco LLC Invests $18.48 Million in Credit Acceptance Corporation $CACC

Key Points

• Philadelphia Financial Management acquired 35,791 shares of Credit Acceptance Corporation, valued at approximately $18.48 million, making it the 5th largest position in their investment portfolio.
• Insiders at Credit Acceptance have recently sold significant shares, including a transaction by major shareholder Jill Foss Watson, who sold 20,000 shares for about $10.8 million.
• Credit Acceptance reported $8.56 earnings per share for its latest quarter, missing expectations, but had a revenue of $583.8 million, slightly exceeding analyst forecasts.

Philadelphia Financial Management of San Francisco LLC acquired a new stake in Credit Acceptance Corporation (NASDAQ:CACC - Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 35,791 shares of the credit services provider's stock, valued at approximately $18,481,000. Credit Acceptance comprises 3.6% of Philadelphia Financial Management of San Francisco LLC's holdings, making the stock its 5th largest position. Philadelphia Financial Management of San Francisco LLC owned about 0.31% of Credit Acceptance as of its most recent SEC filing.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Sierra Ocean LLC purchased a new position in shares of Credit Acceptance during the 1st quarter worth about $26,000. CX Institutional acquired a new position in Credit Acceptance during the first quarter valued at approximately $36,000. BI Asset Management Fondsmaeglerselskab A S purchased a new stake in Credit Acceptance during the first quarter worth approximately $44,000. Harbor Capital Advisors Inc. purchased a new stake in Credit Acceptance during the 1st quarter worth $49,000. Finally, Point72 Asia Singapore Pte. Ltd. boosted its position in shares of Credit Acceptance by 13,400.0% in the fourth quarter. Point72 Asia Singapore Pte. Ltd. now owns 135 shares of the credit services provider's stock worth $64,000 after buying an additional 134 shares during the period. Hedge funds and other institutional investors own 81.71% of the company's stock.

Credit Acceptance Stock Up 1.1%

Credit Acceptance stock traded up $5.57 during midday trading on Tuesday, hitting $518.74. 82,433 shares of the stock were exchanged, compared to its average volume of 99,531. 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 1 year low of $409.22 and a 1 year high of $560.00. The company has a 50 day moving average price of $501.92 and a two-hundred day moving average price of $494.67. The firm has a market cap of $5.83 billion, a P/E ratio of 14.95 and a beta of 1.25.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last announced its earnings results on Thursday, July 31st. The credit services provider reported $8.56 earnings per share (EPS) 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 business's revenue for the quarter was up 8.5% on a year-over-year basis. During the same period in the previous year, the company earned $10.29 earnings per share. On average, sell-side analysts predict that Credit Acceptance Corporation will post 53.24 earnings per share for the current fiscal year.

Insider Transactions at Credit Acceptance

In related news, COO Jonathan Lum sold 6,000 shares of the firm's stock in a transaction on 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 transaction, the chief operating officer directly owned 31,493 shares in the company, valued at $16,143,626.73. This trade represents a 16.00% 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, insider Andrew K. Rostami sold 375 shares of the firm's stock in a transaction dated Friday, June 20th. The stock was sold at an average price of $505.29, for a total transaction of $189,483.75. Following the completion of the transaction, the insider owned 25,478 shares in the company, valued at approximately $12,873,778.62. The trade was a 1.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 36,428 shares of company stock valued at $19,262,627. 6.60% of the stock is currently owned by insiders.

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.