Jay Martin Sells 3,000 Shares of Credit Acceptance (NASDAQ:CACC) Stock

Key Points

• CFO Jay Martin sold 3,000 shares on April 17 at an average of $525.63 under a pre-arranged Rule 10b5-1 plan, cutting his position by 10.36% to 25,963 shares (≈$13.65M).
• Shares fell about 4.0% to $521.23; the stock has a market cap of $5.60B, a PE of 14.28 and a 52‑week range of $401.90–$549.75.
• Credit Acceptance reported quarterly EPS of $11.35 which beat estimates, but revenue of $408.2M missed expectations; analysts hold a consensus Moderate Buy rating with a $505 price target.

Credit Acceptance Corporation (NASDAQ:CACC - Get Free Report) CFO Jay Martin sold 3,000 shares of the business's stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $525.63, for a total value of $1,576,890.00. Following the completion of the transaction, the chief financial officer owned 25,963 shares in the company, valued at approximately $13,646,931.69. This trade represents a 10.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Credit Acceptance Stock Down 4.0%

Shares of NASDAQ:CACC traded down $21.48 during trading on Tuesday, hitting $521.23. The company's stock had a trading volume of 141,254 shares, compared to its average volume of 205,115. 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 Corporation has a fifty-two week low of $401.90 and a fifty-two week high of $549.75. The stock's 50-day moving average price is $472.73 and its two-hundred day moving average price is $467.39. The company has a market capitalization of $5.60 billion, a PE ratio of 14.28 and a beta of 1.32.

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

Hedge Funds Weigh In On Credit Acceptance

Several institutional investors have recently made changes to their positions in the stock. Global Retirement Partners LLC grew its holdings in Credit Acceptance by 2.7% in the 3rd quarter. Global Retirement Partners LLC now owns 882 shares of the credit services provider's stock worth $412,000 after buying an additional 23 shares in the last quarter. Rockefeller Capital Management L.P. grew its holdings 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 buying an additional 24 shares in the last quarter. Janney Montgomery Scott LLC grew its holdings in Credit Acceptance by 4.6% in the 4th quarter. Janney Montgomery Scott LLC now owns 571 shares of the credit services provider's stock worth $253,000 after buying an additional 25 shares in the last quarter. Cetera Investment Advisers grew its holdings in Credit Acceptance by 6.3% in the 4th quarter. Cetera Investment Advisers now owns 508 shares of the credit services provider's stock worth $225,000 after buying an additional 30 shares in the last quarter. Finally, Russell Investments Group Ltd. grew its holdings in Credit Acceptance by 5.3% in the 3rd quarter. Russell Investments Group Ltd. now owns 721 shares of the credit services provider's stock worth $337,000 after buying an additional 36 shares in the last quarter. 81.71% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on CACC. Stephens upped their price objective on Credit Acceptance from $450.00 to $540.00 and gave the company an "equal weight" rating in a research note on Friday. Weiss Ratings restated a "hold (c)" rating on shares of Credit Acceptance in a research note on Wednesday, January 21st. TD Cowen upped their price objective on Credit Acceptance from $460.00 to $470.00 and gave the company a "hold" rating in a research note on Friday, January 30th. Finally, Zacks Research raised Credit Acceptance from a "hold" rating to a "strong-buy" rating in a report on Tuesday, February 3rd. 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, Credit Acceptance currently has an average rating of "Moderate Buy" and a consensus price target of $505.00.

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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