The Manufacturers Life Insurance Company Purchases Shares of 2,099 Credit Acceptance Corporation $CACC

Key Points

• The Manufacturers Life Insurance Company initiated a position in Credit Acceptance by purchasing 2,099 shares valued at approximately $1.34 million. Institutional investors and hedge funds collectively own 81.71% of the company.
• Credit Acceptance’s shares opened at $604.72, near their 52-week high, despite the company slightly missing quarterly earnings and significantly falling short of revenue estimates. Analysts expect full-year earnings of $47.80 per share.
• Insiders sold 44,289 shares worth $27.5 million over the past three months. Analysts maintain an overall “Hold” rating, with an average price target of $570.

The Manufacturers Life Insurance Company acquired a new position in shares of Credit Acceptance Corporation (NASDAQ:CACC - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund acquired 2,099 shares of the credit services provider's stock, valued at approximately $1,337,000.

Several other large investors also recently made changes to their positions in CACC. Versant Capital Management Inc raised its stake in shares of Credit Acceptance by 587.5% in the 2nd quarter. Versant Capital Management Inc now owns 55 shares of the credit services provider's stock valued at $35,000 after acquiring an additional 47 shares during the period. State of Wyoming acquired a new position in shares of Credit Acceptance during the 4th quarter valued at $27,000. Kestra Advisory Services LLC acquired a new position in shares of Credit Acceptance during the 4th quarter valued at $27,000. Rockefeller Capital Management L.P. boosted its position in Credit Acceptance by 53.3% during the 4th quarter. Rockefeller Capital Management L.P. now owns 69 shares of the credit services provider's stock worth $31,000 after purchasing an additional 24 shares during the period. Finally, Parallel Advisors LLC boosted its position in Credit Acceptance by 590.0% during the 1st quarter. Parallel Advisors LLC now owns 69 shares of the credit services provider's stock worth $29,000 after purchasing an additional 59 shares during the period. Institutional investors and hedge funds own 81.71% of the company's stock.

Insider Transactions at Credit Acceptance

In other Credit Acceptance news, CFO Jay Martin sold 3,000 shares of the business's stock in a transaction on Wednesday, June 24th. The shares were sold at an average price of $601.04, for a total value of $1,803,120.00. Following the transaction, the chief financial officer owned 25,963 shares in the company, valued at $15,604,801.52. The trade was a 10.36% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Jill Watson sold 11,000 shares of the firm's stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $653.24, for a total value of $7,185,640.00. Following the sale, the insider owned 49,346 shares of the company's stock, valued at $32,234,781.04. This represents a 18.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 44,289 shares of company stock worth $27,525,241 over the last three months. Insiders own 6.10% of the company's stock.

Credit Acceptance Trading Up 0.5%

CACC opened at $604.72 on Friday. The firm's 50 day moving average is $602.14 and its 200-day moving average is $542.79. Credit Acceptance Corporation has a 52-week low of $401.90 and a 52-week high of $668.86. The company has a quick ratio of 14.89, a current ratio of 14.89 and a debt-to-equity ratio of 3.84. The firm has a market capitalization of $6.33 billion, a P/E ratio of 13.30 and a beta of 1.35.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last announced its earnings results on Tuesday, August 4th. The credit services provider reported $12.12 earnings per share 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 analysts' expectations of $588.07 million. Credit Acceptance had a net margin of 21.54% and a return on equity of 31.67%. Credit Acceptance's revenue for the quarter was up .6% compared to the same quarter last year. During the same quarter last year, the company posted $10.05 earnings per share. Analysts expect that Credit Acceptance Corporation will post 47.8 EPS for the current fiscal year.

Analysts Set New Price Targets

Several research firms have commented on CACC. Zacks Research lowered Credit Acceptance from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, May 13th. Weiss Ratings raised Credit Acceptance from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, July 16th. Finally, TD Cowen increased their target price on Credit Acceptance from $575.00 to $600.00 and gave the company a "hold" rating in a research note on Wednesday, August 5th. One research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, Credit Acceptance presently has an average rating of "Hold" and an average price target of $570.00.

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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