SG Americas Securities LLC Raises Stake in Credit Acceptance Corporation $CACC

Key Points

• SG Americas Securities LLC boosted its stake in Credit Acceptance by 429.9% in the first quarter, bringing its holdings to 12,835 shares valued at about $5.44 million.
• Institutional ownership remains heavy, with hedge funds and other investors holding 81.71% of Credit Acceptance shares. Several other firms also increased positions, including Rockefeller Capital Management and Janney Montgomery Scott.
• Wall Street sentiment is mixed but mostly cautious: analysts currently rate the stock Hold on average, with a consensus target price of $520, while the shares were recently trading around $629.62.

SG Americas Securities LLC increased its position in Credit Acceptance Corporation (NASDAQ:CACC - Free Report) by 429.9% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 12,835 shares of the credit services provider's stock after buying an additional 10,413 shares during the period. SG Americas Securities LLC owned about 0.12% of Credit Acceptance worth $5,435,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also modified their holdings of the company. Rockefeller Capital Management L.P. grew its stake in 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 worth $31,000 after acquiring an additional 24 shares during the period. Janney Montgomery Scott LLC lifted its stake in shares of Credit Acceptance by 4.6% during the 4th quarter. Janney Montgomery Scott LLC now owns 571 shares of the credit services provider's stock worth $253,000 after purchasing an additional 25 shares during the period. Cetera Investment Advisers boosted its holdings in shares of Credit Acceptance by 6.3% during the fourth quarter. Cetera Investment Advisers now owns 508 shares of the credit services provider's stock worth $225,000 after purchasing an additional 30 shares during the last quarter. Russell Investments Group Ltd. boosted its holdings in shares of Credit Acceptance by 5.3% during the third quarter. Russell Investments Group Ltd. now owns 721 shares of the credit services provider's stock worth $337,000 after purchasing an additional 36 shares during the last quarter. Finally, Greenline Partners LLC boosted its holdings in shares of Credit Acceptance by 0.3% during the third quarter. Greenline Partners LLC now owns 13,450 shares of the credit services provider's stock worth $6,280,000 after purchasing an additional 36 shares during the last quarter. Hedge funds and other institutional investors own 81.71% of the company's stock.

Wall Street Analyst Weigh In

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

Credit Acceptance Stock Up 0.1%

Shares of NASDAQ CACC opened at $629.62 on Monday. Credit Acceptance Corporation has a 52-week low of $401.90 and a 52-week high of $638.55. The firm has a fifty day moving average of $548.53 and a 200-day moving average of $496.07. The stock has a market capitalization of $6.59 billion, a PE ratio of 15.65 and a beta of 1.38. The company has a quick ratio of 13.62, a current ratio of 13.62 and a debt-to-equity ratio of 4.09.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last released its quarterly earnings data 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 return on equity of 29.95% and a net margin of 19.49%.The firm had revenue of $406.00 million for the quarter, compared to analyst estimates of $580.77 million. During the same quarter in the previous year, the company earned $9.35 earnings per share. The company's quarterly revenue was up 1.6% on a year-over-year basis. On average, analysts anticipate that Credit Acceptance Corporation will post 47.5 EPS for the current year.

Insider Activity at Credit Acceptance

In other news, CFO Jay D. Martin sold 3,000 shares of Credit Acceptance stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $601.04, for a total value of $1,803,120.00. Following the transaction, the chief financial officer directly owned 25,963 shares of the company's stock, valued at $15,604,801.52. The trade was a 10.36% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Erin J. Kerber sold 2,937 shares of the business's stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $627.19, for a total value of $1,842,057.03. Following the sale, the insider owned 25,711 shares of the company's stock, valued at $16,125,682.09. The trade was a 10.25% 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. Insiders sold a total of 51,790 shares of company stock valued at $29,487,654 over the last three months. Insiders own 6.10% of the company's stock.

Credit Acceptance Company 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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