WINTON GROUP Ltd Makes New $1.53 Million Investment in Credit Acceptance Corporation $CACC

Key Points

• WINTON GROUP Ltd acquired 2,398 shares of Credit Acceptance worth approximately $1.53 million, while institutional investors collectively own 81.71% of the company.
• Analyst sentiment remains cautious: Credit Acceptance has an average “Hold” rating and a consensus price target of $570, despite Weiss Ratings upgrading the stock to “Buy.”
• Insiders sold 44,289 shares worth $27.5 million in the last quarter. The company’s latest earnings slightly missed estimates, with EPS of $12.12 versus $12.20 expected, while revenue rose 0.6% year over year.

WINTON GROUP Ltd bought a new stake in Credit Acceptance Corporation (NASDAQ:CACC - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 2,398 shares of the credit services provider's stock, valued at approximately $1,527,000.

Several other institutional investors also recently made changes to their positions in CACC. Integrated Wealth Concepts LLC purchased a new position in shares of Credit Acceptance in the 2nd quarter valued at about $38,000. Allworth Financial LP boosted its holdings in Credit Acceptance by 105.3% during the second quarter. Allworth Financial LP now owns 156 shares of the credit services provider's stock worth $99,000 after buying an additional 80 shares in the last quarter. Nykredit A S purchased a new stake in Credit Acceptance during the second quarter worth about $161,000. Corient Private Wealth LP grew its position in Credit Acceptance by 1.8% during the second quarter. Corient Private Wealth LP now owns 1,338 shares of the credit services provider's stock worth $852,000 after buying an additional 24 shares during the period. Finally, California State Teachers Retirement System grew its position in Credit Acceptance by 62,332.4% during the second quarter. California State Teachers Retirement System now owns 3,938,237 shares of the credit services provider's stock worth $2,507,633,000 after buying an additional 3,931,929 shares during the period. 81.71% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of research firms have recently issued reports on CACC. Weiss Ratings upgraded shares of Credit Acceptance from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, July 16th. TD Cowen raised their price objective 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 investment analyst has rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $570.00.

Insider Transactions at Credit Acceptance

In related news, major shareholder Jill Watson sold 11,000 shares of the company's stock in a transaction that occurred on Thursday, July 2nd. The stock was 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 approximately $32,234,781.04. This represents a 18.23% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Erin Kerber sold 5,720 shares of the stock in a transaction on Friday, June 26th. The shares were sold at an average price of $629.80, for a total value of $3,602,456.00. Following the sale, the insider owned 25,711 shares in the company, valued at approximately $16,192,787.80. This trade represents a 18.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 44,289 shares of company stock worth $27,525,241 in the last quarter. Insiders own 6.10% of the company's stock.

Credit Acceptance Stock Performance

Shares of CACC opened at $604.24 on Friday. The company has a current ratio of 14.89, a quick ratio of 14.89 and a debt-to-equity ratio of 3.84. The stock has a market cap of $6.32 billion, a P/E ratio of 13.29 and a beta of 1.35. The company has a 50-day moving average of $597.35 and a two-hundred day moving average of $546.59. Credit Acceptance Corporation has a 12-month low of $401.90 and a 12-month high of $668.86.

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

Credit Acceptance Company Profile

Credit Acceptance Corporation is a specialty finance company that provides automobile financing to consumers with limited or damaged credit histories. The company primarily operates through an indirect lending model, partnering with automobile dealers that offer financing to their customers at the point of sale.

Credit Acceptance purchases or services retail installment contracts originated by participating dealers and provides loan programs designed to help consumers obtain vehicles when they may not qualify for traditional prime lending.

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