Credit Acceptance Co. (NASDAQ:CACC) Sees Large Decline in Short Interest

Credit Acceptance Co. (NASDAQ:CACC) saw a large drop in short interest in October. As of October 15th, there was short interest totalling 516,900 shares, a drop of 8.7% from the September 30th total of 565,900 shares. Currently, 8.2% of the shares of the stock are short sold. Based on an average daily volume of 50,500 shares, the short-interest ratio is currently 10.2 days.

Credit Acceptance Stock Down 8.0 %

NASDAQ CACC opened at $425.00 on Friday. The business’s fifty day simple moving average is $455.23 and its 200-day simple moving average is $490.32. The company has a quick ratio of 19.15, a current ratio of 19.15 and a debt-to-equity ratio of 3.77. The firm has a market cap of $5.15 billion, a PE ratio of 28.54 and a beta of 1.42. Credit Acceptance has a 52 week low of $379.77 and a 52 week high of $616.66.

Credit Acceptance (NASDAQ:CACC) last issued its earnings results on Wednesday, October 30th. The credit services provider reported $8.79 EPS for the quarter, topping analysts’ consensus estimates of $7.88 by $0.91. Credit Acceptance had a net margin of 9.01% and a return on equity of 30.77%. The company had revenue of $550.30 million for the quarter, compared to the consensus estimate of $548.13 million. During the same period in the previous year, the firm earned $10.70 earnings per share. Credit Acceptance’s quarterly revenue was up 15.0% compared to the same quarter last year. As a group, equities analysts anticipate that Credit Acceptance will post 38.87 earnings per share for the current year.

Insider Buying and Selling at Credit Acceptance

In other news, insider Thomas W. Smith sold 1,200 shares of the stock in a transaction dated 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 directly owns 74,450 shares in the company, valued at $33,577,694.50. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 5.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. UMB Bank n.a. raised its position in Credit Acceptance by 4.6% in the second quarter. UMB Bank n.a. now owns 654 shares of the credit services provider’s stock valued at $337,000 after purchasing an additional 29 shares during the period. CANADA LIFE ASSURANCE Co increased its position in shares of Credit Acceptance by 3.4% during the 1st quarter. CANADA LIFE ASSURANCE Co now owns 2,161 shares of the credit services provider’s stock worth $1,191,000 after purchasing an additional 72 shares during the last quarter. nVerses Capital LLC purchased a new stake in Credit Acceptance in the 2nd quarter valued at about $51,000. Wedge Capital Management L L P NC lifted its position in Credit Acceptance by 4.2% in the third quarter. Wedge Capital Management L L P NC now owns 2,617 shares of the credit services provider’s stock valued at $1,160,000 after buying an additional 105 shares during the last quarter. Finally, BNP Paribas Financial Markets boosted its stake in Credit Acceptance by 2.5% during the first quarter. BNP Paribas Financial Markets now owns 4,618 shares of the credit services provider’s stock worth $2,547,000 after buying an additional 111 shares during the period. 81.71% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Separately, TD Cowen dropped their price target on Credit Acceptance from $440.00 to $400.00 and set a “sell” rating for the company in a research report on Thursday, August 1st.

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.