Credit Acceptance (NASDAQ:CACC) Issues Earnings Results

Credit Acceptance (NASDAQ:CACC) announced its earnings results on Wednesday. The credit services provider reported $8.79 earnings per share for the quarter, beating the consensus estimate of $7.88 by $0.91, Briefing.com reports. Credit Acceptance had a return on equity of 30.77% and a net margin of 9.01%. The company had revenue of $550.30 million during the quarter, compared to the consensus estimate of $548.13 million. During the same period last year, the firm earned $10.70 earnings per share. The company’s revenue was up 15.0% on a year-over-year basis.

Credit Acceptance Stock Down 7.6 %

Shares of CACC traded down $35.11 during midday trading on Thursday, hitting $426.82. The company had a trading volume of 34,184 shares, compared to its average volume of 56,491. The company has a quick ratio of 19.15, a current ratio of 19.15 and a debt-to-equity ratio of 3.77. Credit Acceptance has a 52 week low of $379.77 and a 52 week high of $616.66. The company’s 50 day moving average price is $455.38 and its 200 day moving average price is $490.52. The stock has a market cap of $5.17 billion, a price-to-earnings ratio of 23.70 and a beta of 1.42.

Wall Street Analysts Forecast Growth

Separately, TD Cowen lowered their price objective on Credit Acceptance from $440.00 to $400.00 and set a “sell” rating for the company in a research note on Thursday, August 1st. One investment analyst has rated the stock with a sell rating, two have given a hold rating and one has assigned a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $395.67.

Insider Buying and Selling

In other news, insider Thomas W. Smith sold 1,200 shares of Credit Acceptance stock in a transaction that occurred on Monday, September 9th. The stock was sold at an average price of $451.01, for a total value of $541,212.00. Following the completion of the transaction, the insider now owns 74,450 shares in the company, valued at approximately $33,577,694.50. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 5.30% 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.