Credit Acceptance (NASDAQ:CACC) Downgraded by StockNews.com to Hold

Credit Acceptance (NASDAQ:CACC) was downgraded by equities research analysts at StockNews.com from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday.

CACC has been the subject of a number of other reports. TD Cowen lowered their price target on Credit Acceptance from $400.00 to $380.00 and set a “sell” rating for the company in a report on Friday, November 1st. Stephens began coverage on Credit Acceptance in a report on Wednesday, November 13th. They issued an “equal weight” rating and a $452.00 price target for the company.

Credit Acceptance Price Performance

Shares of NASDAQ CACC opened at $454.55 on Tuesday. The company has a quick ratio of 23.63, a current ratio of 23.63 and a debt-to-equity ratio of 3.79. Credit Acceptance has a fifty-two week low of $409.22 and a fifty-two week high of $616.66. The business has a 50 day moving average price of $466.50 and a two-hundred day moving average price of $478.16. The firm has a market cap of $5.51 billion, a PE ratio of 30.53 and a beta of 1.46.

Credit Acceptance (NASDAQ:CACC) last announced its earnings results on Wednesday, October 30th. The credit services provider reported $8.79 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $7.88 by $0.91. Credit Acceptance had a return on equity of 29.18% and a net margin of 9.08%. The company had revenue of $550.30 million for the quarter, compared to analyst estimates of $548.13 million. During the same period in the prior year, the company posted $10.70 EPS. Credit Acceptance’s quarterly revenue was up 15.0% on a year-over-year basis. Sell-side analysts expect that Credit Acceptance will post 36.54 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, COO Jonathan Lum sold 552 shares of the stock in a transaction on Tuesday, December 17th. The stock was sold at an average price of $489.90, for a total value of $270,424.80. Following the completion of the transaction, the chief operating officer now owns 31,493 shares of the company’s stock, valued at approximately $15,428,420.70. This represents a 1.72 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. 5.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Rhumbline Advisers lifted its holdings in shares of Credit Acceptance by 10.1% in the second quarter. Rhumbline Advisers now owns 9,235 shares of the credit services provider’s stock valued at $4,753,000 after buying an additional 844 shares during the period. Headlands Technologies LLC raised its position in Credit Acceptance by 24,850.0% during the second quarter. Headlands Technologies LLC now owns 499 shares of the credit services provider’s stock valued at $257,000 after buying an additional 497 shares during the period. Dimensional Fund Advisors LP raised its position in Credit Acceptance by 4.1% during the second quarter. Dimensional Fund Advisors LP now owns 179,655 shares of the credit services provider’s stock valued at $92,455,000 after buying an additional 7,064 shares during the period. Renaissance Technologies LLC increased its position in Credit Acceptance by 38.6% in the 2nd quarter. Renaissance Technologies LLC now owns 7,900 shares of the credit services provider’s stock worth $4,066,000 after purchasing an additional 2,200 shares during the last quarter. Finally, XTX Topco Ltd acquired a new position in Credit Acceptance in the 2nd quarter worth about $876,000. Institutional investors own 81.71% of the company’s stock.

About Credit Acceptance

Credit Acceptance Corporation engages in the provision of financing programs, and related products and services in the United States. The company advances money to automobile dealers in exchange for the right to service the underlying consumer loans; and buys the consumer loans from the dealers and keeps the amount collected from the consumers.