Insider Selling: Credit Acceptance (NASDAQ:CACC) Insider Sells 4,062 Shares of Stock

Key Points

• Wendy Rummler sold 4,062 shares on April 17 at an average price of $525.67 under a pre-arranged Rule 10b5-1 plan, generating about $2.14 million and reducing her holdings by 17.21% to 19,547 shares (worth ≈ $10.28M).
• Credit Acceptance reported EPS of $11.35, beating the $10.30 consensus, but missed revenue expectations with $408.2M versus $582.63M expected, leaving net margin at 18.29% and ROE at 28.86%.
• Shares fell roughly 4% to $521.23 on the news; the company has a market cap of $5.6B, a P/E of 14.28, institutional ownership of 81.71%, and an average analyst target of $505 (MarketBeat: "Moderate Buy").

Credit Acceptance Corporation (NASDAQ:CACC - Get Free Report) insider Wendy Rummler sold 4,062 shares of the firm's stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $525.67, for a total transaction of $2,135,271.54. Following the sale, the insider owned 19,547 shares in the company, valued at $10,275,271.49. This trade represents a 17.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Credit Acceptance Stock Down 4.0%

CACC stock traded down $21.48 during mid-day trading on Tuesday, hitting $521.23. 141,254 shares of the company were exchanged, compared to its average volume of 205,115. The firm has a market cap of $5.60 billion, a P/E ratio of 14.28 and a beta of 1.32. Credit Acceptance Corporation has a 1-year low of $401.90 and a 1-year high of $549.75. The firm's 50 day simple moving average is $472.73 and its 200 day simple moving average is $467.39. The company has a debt-to-equity ratio of 4.10, a quick ratio of 16.91 and a current ratio of 16.91.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last issued its quarterly earnings results on Thursday, January 29th. The credit services provider reported $11.35 earnings per share for the quarter, topping the consensus estimate of $10.30 by $1.05. The company had revenue of $408.20 million during the quarter, compared to analysts' expectations of $582.63 million. Credit Acceptance had a net margin of 18.29% and a return on equity of 28.86%. The business's quarterly revenue was up 2.5% on a year-over-year basis. During the same period last year, the business earned $10.17 EPS. On average, sell-side analysts predict that Credit Acceptance Corporation will post 47 EPS for the current fiscal year.

Hedge Funds Weigh In On Credit Acceptance

Hedge funds and other institutional investors have recently made changes to their positions in the company. Allianz Asset Management GmbH grew its stake in shares of Credit Acceptance by 21.3% in the third quarter. Allianz Asset Management GmbH now owns 29,095 shares of the credit services provider's stock valued at $13,585,000 after buying an additional 5,107 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH grew its stake in shares of Credit Acceptance by 16.9% in the third quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 23,575 shares of the credit services provider's stock valued at $11,008,000 after buying an additional 3,400 shares in the last quarter. SG Americas Securities LLC grew its stake in shares of Credit Acceptance by 430.3% in the third quarter. SG Americas Securities LLC now owns 2,418 shares of the credit services provider's stock valued at $1,129,000 after buying an additional 1,962 shares in the last quarter. Illinois Municipal Retirement Fund bought a new position in shares of Credit Acceptance in the third quarter valued at $697,000. Finally, Envestnet Asset Management Inc. grew its stake in shares of Credit Acceptance by 8.0% in the third quarter. Envestnet Asset Management Inc. now owns 34,990 shares of the credit services provider's stock valued at $16,338,000 after buying an additional 2,583 shares in the last quarter. 81.71% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on CACC. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Credit Acceptance in a research note on Wednesday, January 21st. Zacks Research raised shares of Credit Acceptance from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, February 3rd. Stephens raised their price target 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. Finally, TD Cowen raised their price target on shares of Credit Acceptance from $460.00 to $470.00 and gave the stock a "hold" rating in a research note on Friday, January 30th. One investment analyst has rated the stock with a Strong Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, Credit Acceptance has an average rating of "Moderate Buy" and an average target price of $505.00.

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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