Credit Acceptance (NASDAQ:CACC) Shares Gap Up After Better-Than-Expected Earnings

Credit Acceptance Co. (NASDAQ:CACC)’s share price gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $514.06, but opened at $550.00. Credit Acceptance shares last traded at $534.78, with a volume of 12,896 shares traded.

The credit services provider reported $10.17 earnings per share for the quarter, topping analysts’ consensus estimates of $7.70 by $2.47. Credit Acceptance had a return on equity of 29.18% and a net margin of 9.08%.

Analysts Set New Price Targets

Several research analysts have issued reports on CACC shares. TD Cowen decreased their price target on shares of Credit Acceptance from $400.00 to $380.00 and set a “sell” rating on the stock in a research report on Friday, November 1st. Stephens began coverage on shares of Credit Acceptance in a research note on Wednesday, November 13th. They set an “equal weight” rating and a $452.00 target price for the company. Finally, StockNews.com lowered shares of Credit Acceptance from a “buy” rating to a “hold” rating in a research report on Thursday, January 23rd.

Insider Transactions at Credit Acceptance

In other news, COO Jonathan Lum sold 552 shares of the firm’s stock in a transaction that occurred on Tuesday, December 17th. The shares were sold at an average price of $489.90, for a total transaction of $270,424.80. Following the completion of the transaction, the chief operating officer now directly owns 31,493 shares of the company’s stock, valued at $15,428,420.70. This trade represents a 1.72 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 5.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Credit Acceptance

A number of large investors have recently added to or reduced their stakes in the company. Eagle Bay Advisors LLC acquired a new position in Credit Acceptance in the fourth quarter valued at about $28,000. Quest Partners LLC raised its position in Credit Acceptance by 11,900.0% during the 3rd quarter. Quest Partners LLC now owns 120 shares of the credit services provider’s stock worth $53,000 after purchasing an additional 119 shares during the last quarter. nVerses Capital LLC boosted its holdings 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 acquiring an additional 200 shares during the last quarter. SG Americas Securities LLC bought a new position in Credit Acceptance during the fourth quarter worth $142,000. Finally, Point72 Hong Kong Ltd bought a new position in shares of Credit Acceptance in the 3rd quarter worth about $177,000. Institutional investors and hedge funds own 81.71% of the company’s stock.

Credit Acceptance Stock Performance

The company has a quick ratio of 23.63, a current ratio of 23.63 and a debt-to-equity ratio of 3.79. The stock has a market capitalization of $6.49 billion, a price-to-earnings ratio of 35.82 and a beta of 1.46. The company has a 50 day simple moving average of $482.31 and a 200-day simple moving average of $475.16.

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.