StockNews.com Upgrades Credit Acceptance (NASDAQ:CACC) to Buy

Credit Acceptance (NASDAQ:CACC) was upgraded by equities research analysts at StockNews.com from a “hold” rating to a “buy” rating in a report released on Wednesday.

Several other brokerages also recently issued reports on CACC. TD Cowen cut their price objective on Credit Acceptance from $400.00 to $380.00 and set a “sell” rating for the company in a research report on Friday, November 1st. Stephens started coverage on Credit Acceptance in a research note on Wednesday, November 13th. They set an “equal weight” rating and a $452.00 price target on the stock.

Credit Acceptance Price Performance

Shares of NASDAQ:CACC opened at $482.24 on Wednesday. Credit Acceptance has a 1-year low of $409.22 and a 1-year high of $616.66. The firm has a market capitalization of $5.84 billion, a PE ratio of 32.39 and a beta of 1.46. The business’s 50 day moving average is $469.45 and its 200-day moving average is $476.60. The company has a current ratio of 23.63, a quick ratio of 23.63 and a debt-to-equity ratio of 3.79.

Credit Acceptance (NASDAQ:CACC) last announced its quarterly earnings results on Wednesday, October 30th. The credit services provider reported $8.79 EPS for the quarter, beating the consensus estimate of $7.88 by $0.91. The business had revenue of $550.30 million for the quarter, compared to analyst estimates of $548.13 million. Credit Acceptance had a return on equity of 29.18% and a net margin of 9.08%. Credit Acceptance’s quarterly revenue was up 15.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $10.70 EPS. Sell-side analysts predict that Credit Acceptance will post 36.53 earnings per share for the current year.

Insider Buying and Selling at Credit Acceptance

In other Credit Acceptance news, COO Jonathan Lum sold 552 shares of the stock in a transaction dated Tuesday, December 17th. The stock was sold at an average price of $489.90, for a total value of $270,424.80. Following 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 filing with the SEC, which can be accessed through the SEC website. Insiders own 5.30% of the company’s stock.

Institutional Investors Weigh In On Credit Acceptance

A number of hedge funds have recently modified their holdings of CACC. Eagle Bay Advisors LLC acquired a new stake in shares of Credit Acceptance during the fourth quarter worth about $28,000. Quest Partners LLC grew its stake in Credit Acceptance by 11,900.0% in the third quarter. Quest Partners LLC now owns 120 shares of the credit services provider’s stock valued at $53,000 after purchasing an additional 119 shares in the last quarter. nVerses Capital LLC grew its stake in Credit Acceptance by 200.0% in the third quarter. nVerses Capital LLC now owns 300 shares of the credit services provider’s stock valued at $133,000 after purchasing an additional 200 shares in the last quarter. Point72 Hong Kong Ltd bought a new position in Credit Acceptance in the third quarter valued at approximately $177,000. Finally, Kovitz Investment Group Partners LLC acquired a new stake in shares of Credit Acceptance in the third quarter valued at approximately $245,000. Institutional investors and hedge funds 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.