Credit Acceptance (NASDAQ:CACC) Shares Cross Below 200 Day Moving Average Following Analyst Downgrade

Key Points

• Credit Acceptance shares fell below their 200-day moving average of $537.42, trading as low as $455.43 after TD Cowen cut its price target from $590 to $470 and maintained a Hold rating.
• The company reported third-quarter adjusted EPS of $13.01, beating estimates, while revenue rose 2.1% year over year and dealer activity reached a record level.
• Investor concerns include a $56.6 million GAAP net loss, revenue slightly below expectations, and a securities-law investigation; analysts’ overall consensus remains Hold with an average price target of $505.

Credit Acceptance Corporation (NASDAQ:CACC - Get Free Report) crossed below its 200-day moving average during trading on Friday after TD Cowen lowered their price target on the stock from $590.00 to $470.00. The stock has a 200-day moving average of $537.42 and traded as low as $455.43. TD Cowen currently has a hold rating on the stock. Credit Acceptance shares last traded at $464.89, with a volume of 386,264 shares trading hands.

Separately, Weiss Ratings reissued a "buy (b-)" rating on shares of Credit Acceptance in a report on Wednesday, October 14th. One analyst has rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, Credit Acceptance presently has a consensus rating of "Hold" and an average target price of $505.00.

Credit Acceptance News Summary

Here are the key news stories impacting Credit Acceptance this week:

• Positive Sentiment: Credit Acceptance reported third-quarter adjusted earnings of $13.01 per diluted share, above the $12.86 analyst consensus and up from $10.28 a year earlier. Adjusted net income increased to $135.5 million from $117.9 million. Credit Acceptance Announces Third Quarter 2026 Results
• Positive Sentiment: The company highlighted continued business activity, including a record number of dealers, while quarterly revenue increased 2.1% year over year. These trends suggest underlying operating momentum despite the quarter’s headline accounting loss. Credit Acceptance Q3 2026: Record Dealers, but a Forecast Change Stings
• Neutral Sentiment: TD Cowen lowered its price target from $590 to $470 and maintained a Hold rating. The new target implies only about 1.1% upside from the referenced trading level, signaling limited near-term valuation support. TD Cowen Stock Recommendations
• Negative Sentiment: On a GAAP basis, Credit Acceptance posted a $56.6 million net loss, or $5.43 per share, versus $108.2 million of net income a year earlier. The large gap between GAAP and adjusted results may be weighing on investor confidence.
• Negative Sentiment: Reported revenue of approximately $594.6 million was slightly below the $596.4 million FactSet estimate, tempering the adjusted-EPS beat. Credit Acceptance Q3 Revenue Earnings Flash
• Negative Sentiment: Block & Leviton announced an investigation into potential securities-law violations and is soliciting investors who incurred losses. Although the investigation does not establish wrongdoing, it adds legal and reputational risk to the stock. CACC Securities Fraud Investigation

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of Credit Acceptance during the 3rd quarter valued at $467,000. Root Financial Partners LLC bought a new stake in shares of Credit Acceptance during the 3rd quarter worth $35,000. Nisa Investment Advisors LLC lifted its holdings in shares of Credit Acceptance by 2.4% during the 3rd quarter. Nisa Investment Advisors LLC now owns 3,074 shares of the credit services provider's stock worth $1,632,000 after acquiring an additional 73 shares during the last quarter. Fortitude Family Office LLC lifted its holdings in shares of Credit Acceptance by 1,060.0% during the 3rd quarter. Fortitude Family Office LLC now owns 116 shares of the credit services provider's stock worth $62,000 after acquiring an additional 106 shares during the last quarter. Finally, GAMMA Investing LLC grew its position in Credit Acceptance by 181.7% in the third quarter. GAMMA Investing LLC now owns 169 shares of the credit services provider's stock worth $90,000 after acquiring an additional 109 shares in the last quarter. 81.71% of the stock is owned by institutional investors.

Credit Acceptance Price Performance

The firm's 50-day moving average is $564.30 and its 200-day moving average is $537.42. The company has a market capitalization of $4.86 billion, a PE ratio of 15.18 and a beta of 1.40. The company has a quick ratio of 14.89, a current ratio of 14.89 and a debt-to-equity ratio of 3.84.

Credit Acceptance (NASDAQ:CACC - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The credit services provider reported $13.01 earnings per share for the quarter, beating analysts' consensus estimates of $12.86 by $0.15. Credit Acceptance had a return on equity of 33.00% and a net margin of 14.39%. The business had revenue of $420.30 million for the quarter, compared to the consensus estimate of $596.40 million. During the same quarter last year, the business posted $10.28 earnings per share. The company's revenue for the quarter was up 2.1% on a year-over-year basis. Equities analysts predict that Credit Acceptance Corporation will post 47.64 earnings per share for the current fiscal year.

About Credit Acceptance

Credit Acceptance Corporation NASDAQ: CACC is a specialized automobile finance company that provides financing programs for consumers who may have difficulty obtaining credit through traditional lenders. The company primarily operates through an indirect lending model, working with automobile dealers who offer financing to customers purchasing new or used vehicles.

Credit Acceptance purchases or services automotive loans originated through its dealer-partner network. Its programs are designed to help dealers sell vehicles to a broader range of consumers, while the company manages loan underwriting, servicing, collections, and related risk-management activities.

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