Insider Selling: Credit Acceptance (NASDAQ:CACC) Insider Sells 1,753 Shares of Stock

Key Points

• Credit Acceptance insider Erin Kerber sold 1,753 shares on May 6 at an average price of $551.62, totaling about $966,990. The sale reduced Kerber’s direct ownership by 6.38% and was made under a pre-arranged Rule 10b5-1 plan.
• The company recently reported quarterly EPS of $10.71, slightly below estimates, while revenue came in at $406 million versus expectations of $580.77 million. Even so, revenue rose 1.6% year over year and Credit Acceptance posted a strong return on equity of 29.95%.
• Shares were trading around $533.15, near their 52-week high of $565.14, with analysts maintaining a Moderate Buy consensus and an average target price of $520. Institutional ownership remains high at 81.71%.

Credit Acceptance Corporation (NASDAQ:CACC - Get Free Report) insider Erin Kerber sold 1,753 shares of the company's stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $551.62, for a total transaction of $966,989.86. Following the completion of the transaction, the insider directly owned 25,711 shares of the company's stock, valued at approximately $14,182,701.82. The trade was a 6.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Credit Acceptance Price Performance

Shares of NASDAQ CACC traded up $10.28 during mid-day trading on Friday, reaching $533.15. The company had a trading volume of 198,978 shares, compared to its average volume of 194,829. The company has a 50-day moving average price of $478.16 and a two-hundred day moving average price of $469.49. Credit Acceptance Corporation has a 1-year low of $401.90 and a 1-year high of $565.14. The stock has a market cap of $5.58 billion, a PE ratio of 13.25 and a beta of 1.36. The company has a current ratio of 13.62, a quick ratio of 16.91 and a debt-to-equity ratio of 4.09.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share (EPS) for the quarter, missing the consensus estimate of $10.73 by ($0.02). Credit Acceptance had a return on equity of 29.95% and a net margin of 19.49%.The company had revenue of $406.00 million for the quarter, compared to the consensus estimate of $580.77 million. During the same quarter in the previous year, the firm posted $9.35 EPS. The business's revenue for the quarter was up 1.6% compared to the same quarter last year. On average, equities analysts anticipate that Credit Acceptance Corporation will post 47 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. State of Wyoming purchased a new position in Credit Acceptance in the 4th quarter valued at about $27,000. Kestra Advisory Services LLC bought a new position in Credit Acceptance in the 4th quarter valued at about $27,000. Parallel Advisors LLC boosted its holdings in Credit Acceptance by 590.0% during the first quarter. Parallel Advisors LLC now owns 69 shares of the credit services provider's stock worth $29,000 after buying an additional 59 shares in the last quarter. Rockefeller Capital Management L.P. lifted its holdings in shares of Credit Acceptance by 53.3% in the fourth quarter. Rockefeller Capital Management L.P. now owns 69 shares of the credit services provider's stock valued at $31,000 after purchasing an additional 24 shares in the last quarter. Finally, Allworth Financial LP grew its stake in shares of Credit Acceptance by 141.9% in the 3rd quarter. Allworth Financial LP now owns 104 shares of the credit services provider's stock valued at $49,000 after buying an additional 61 shares in the last quarter. 81.71% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the stock. Zacks Research raised shares of Credit Acceptance from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, February 3rd. TD Cowen lifted their target price on shares of Credit Acceptance from $450.00 to $500.00 and gave the stock a "hold" rating in a report on Wednesday. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Credit Acceptance in a report on Monday, April 20th. Finally, Stephens lifted their price objective on shares of Credit Acceptance from $450.00 to $540.00 and gave the stock an "equal weight" rating in a research note on Friday, April 17th. One investment analyst has rated the stock with a Strong Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $520.00.

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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