Credit Acceptance Corporation provides financing programs, and related products and services to independent and franchised automobile dealers in the United States. The company advances money to dealers in exchange for the right to service the underlying consumer loans; and buys the consumer loans from the dealers and keeps various amounts collected from the consumers. It is also involved in the business of reinsuring coverage under vehicle service contracts sold to consumers by dealers on vehicles financed by the company. The company was founded in 1972 and is headquartered in Southfield, Michigan.
Credit Acceptance Stock Performance
Shares of Credit Acceptance stock traded up $9.31 during trading hours on Thursday, reaching $608.71. The company's stock had a trading volume of 2,050 shares, compared to its average volume of 54,759. The company's 50 day simple moving average is $524.31 and its 200 day simple moving average is $541.08. The company has a debt-to-equity ratio of 3.01, a quick ratio of 15.39 and a current ratio of 15.39. Credit Acceptance has a one year low of $452.48 and a one year high of $703.27. The stock has a market cap of $7.86 billion, a P/E ratio of 11.42 and a beta of 1.34.
Credit Acceptance (NASDAQ:CACC - Get Rating) last issued its quarterly earnings data on Monday, August 1st. The credit services provider reported $7.94 earnings per share for the quarter, missing the consensus estimate of $12.14 by ($4.20). The firm had revenue of $457.40 million during the quarter, compared to the consensus estimate of $454.77 million. Credit Acceptance had a net margin of 42.75% and a return on equity of 47.19%. The company's revenue for the quarter was down 3.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $13.71 earnings per share. As a group, analysts expect that Credit Acceptance will post 54.38 EPS for the current fiscal year.
Analyst Ratings Changes
Several research analysts have weighed in on the stock. Credit Suisse Group decreased their price objective on shares of Credit Acceptance from $460.00 to $440.00 and set an "underperform" rating for the company in a report on Tuesday, August 2nd. StockNews.com lowered shares of Credit Acceptance from a "buy" rating to a "hold" rating in a report on Thursday, May 12th. Two equities research analysts have rated the stock with a sell rating and three have given a hold rating to the stock. According to MarketBeat.com, Credit Acceptance presently has a consensus rating of "Hold" and an average target price of $435.50.