Credit Acceptance (NASDAQ:CACC) Shares Gap Up – Here’s Why

Credit Acceptance Co. (NASDAQ:CACC)’s stock price gapped up before the market opened 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 dropped their target price on shares of Credit Acceptance from $440.00 to $400.00 and set a “sell” rating on the stock in a research report on Thursday, August 1st. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and one has assigned a buy rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $395.67.

Credit Acceptance Price Performance

The firm’s fifty day moving average price is $453.09 and its 200 day moving average price is $495.12. The firm has a market capitalization of $5.76 billion, a PE ratio of 24.39 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 released its quarterly earnings data on Wednesday, July 31st. The credit services provider reported $10.29 EPS for the quarter, beating the consensus estimate of $7.20 by $3.09. The business had revenue of $538.20 million for 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 business’s revenue for the quarter was up 12.6% on a year-over-year basis. During the same period in the prior year, the firm earned $10.69 EPS. As a group, equities analysts forecast that Credit Acceptance Co. will post 38.87 earnings per share for the current year.

Insider Activity

In other news, insider Thomas W. Smith sold 1,200 shares of the company’s stock in a transaction 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 sale, the insider now directly owns 74,450 shares of the company’s stock, valued at $33,577,694.50. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 5.30% of the company’s stock.

Hedge Funds Weigh In On Credit Acceptance

Several large investors have recently made changes to their positions in the company. Dimensional Fund Advisors LP lifted its stake in shares of Credit Acceptance by 4.1% in the 2nd quarter. Dimensional Fund Advisors LP now owns 179,655 shares of the credit services provider’s stock valued at $92,455,000 after purchasing an additional 7,064 shares during the period. Alfreton Capital LLP lifted its stake in shares of Credit Acceptance by 22.7% in the 2nd quarter. Alfreton Capital LLP now owns 98,128 shares of the credit services provider’s stock valued at $50,505,000 after purchasing an additional 18,128 shares during the period. Quantum Capital Management LLC NJ lifted its stake in shares of Credit Acceptance by 20.8% in the 1st quarter. Quantum Capital Management LLC NJ now owns 63,920 shares of the credit services provider’s stock valued at $35,255,000 after purchasing an additional 11,024 shares during the period. Bank of New York Mellon Corp lifted its stake in shares of Credit Acceptance by 4.2% in the 2nd quarter. Bank of New York Mellon Corp now owns 23,732 shares of the credit services provider’s stock valued at $12,214,000 after purchasing an additional 951 shares during the period. Finally, Quadrature Capital Ltd acquired a new position in shares of Credit Acceptance in the 1st quarter valued at $6,830,000. 81.71% of the stock is currently owned by institutional investors and hedge funds.

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.