Credit Acceptance (NASDAQ:CACC) Shares Gap Up – Time to Buy?

Credit Acceptance Co. (NASDAQ:CACC)’s share price gapped up prior to trading on Thursday . The stock had previously closed at $466.28, but opened at $480.90. Credit Acceptance shares last traded at $480.90, with a volume of 950 shares traded.

Analysts Set New Price Targets

Separately, TD Cowen reduced their target price on shares of Credit Acceptance from $440.00 to $400.00 and set a “sell” rating on the stock in a report on Thursday, August 1st. One analyst has rated the stock with a sell rating, two have given a hold rating and one has issued a buy rating to the company. According to MarketBeat.com, Credit Acceptance currently has a consensus rating of “Hold” and an average target price of $395.67.

Credit Acceptance Stock Performance

The stock’s 50-day moving average is $452.52 and its 200-day moving average is $495.74. The stock has a market cap of $5.79 billion, a price-to-earnings ratio of 24.50 and a beta of 1.42. The company has a current ratio of 19.15, a quick ratio of 19.15 and a debt-to-equity ratio of 3.77.

Credit Acceptance (NASDAQ:CACC) last posted its earnings results on Wednesday, July 31st. The credit services provider reported $10.29 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $7.20 by $3.09. The firm had revenue of $538.20 million during the quarter, compared to the consensus estimate of $525.03 million. Credit Acceptance had a net margin of 9.01% and a return on equity of 30.77%. The company’s revenue was up 12.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $10.69 EPS. On average, analysts expect that Credit Acceptance Co. will post 38.87 EPS for the current year.

Insider Buying and Selling at Credit Acceptance

In other Credit Acceptance news, insider Thomas W. Smith sold 1,200 shares of the stock in a transaction that occurred on Monday, September 9th. The shares were sold at an average price of $451.01, for a total value of $541,212.00. Following the completion of the sale, the insider now owns 74,450 shares of the company’s stock, valued at $33,577,694.50. This trade represents a 0.00 % decrease in their ownership of the stock. 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 owned by corporate insiders.

Institutional Trading of Credit Acceptance

Several large investors have recently bought and sold shares of CACC. Alfreton Capital LLP lifted its stake in Credit Acceptance by 22.7% during the second quarter. Alfreton Capital LLP now owns 98,128 shares of the credit services provider’s stock worth $50,505,000 after purchasing an additional 18,128 shares during the last quarter. Quadrature Capital Ltd bought a new position in Credit Acceptance during the first quarter worth $6,830,000. Quantum Capital Management LLC NJ lifted its stake in Credit Acceptance by 20.8% during the first quarter. Quantum Capital Management LLC NJ now owns 63,920 shares of the credit services provider’s stock worth $35,255,000 after purchasing an additional 11,024 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake 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 worth $92,455,000 after purchasing an additional 7,064 shares during the last quarter. Finally, Marshall Wace LLP lifted its stake in Credit Acceptance by 107.5% during the second quarter. Marshall Wace LLP now owns 9,480 shares of the credit services provider’s stock worth $4,879,000 after purchasing an additional 4,912 shares during the last quarter. Institutional investors and hedge funds own 81.71% of the company’s stock.

Credit Acceptance Company Profile

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.