Credit Acceptance (NASDAQ:CACC) Shares Gap Up on Strong Earnings

Credit Acceptance Co. (NASDAQ:CACC) shares 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, beating the consensus estimate 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 equities analysts recently issued reports on the company. StockNews.com upgraded Credit Acceptance from a “hold” rating to a “buy” rating in a research report on Friday. Stephens boosted their price target on Credit Acceptance from $452.00 to $500.00 and gave the company an “equal weight” rating in a research report on Friday. Finally, TD Cowen dropped their price target on Credit Acceptance from $400.00 to $380.00 and set a “sell” rating on the stock in a research report on Friday, November 1st.

Insiders Place Their Bets

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

Institutional Investors Weigh In On Credit Acceptance

Several institutional investors have recently modified their holdings of CACC. AQR Capital Management LLC boosted its stake in shares of Credit Acceptance by 19.6% during the 2nd quarter. AQR Capital Management LLC now owns 6,705 shares of the credit services provider’s stock worth $3,339,000 after acquiring an additional 1,101 shares in the last quarter. The Manufacturers Life Insurance Company boosted its stake in shares of Credit Acceptance by 16.5% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 2,064 shares of the credit services provider’s stock worth $1,062,000 after acquiring an additional 292 shares in the last quarter. Mackenzie Financial Corp purchased a new stake in shares of Credit Acceptance during the 2nd quarter worth approximately $386,000. Algert Global LLC purchased a new stake in Credit Acceptance in the 2nd quarter valued at approximately $351,000. Finally, Creative Planning acquired a new stake in Credit Acceptance during the 2nd quarter valued at $282,000. Hedge funds and other institutional investors own 81.71% of the company’s stock.

Credit Acceptance Trading Down 1.2 %

The business has a fifty day simple moving average of $483.00 and a 200 day simple moving average of $474.63. The stock has a market cap of $6.15 billion, a price-to-earnings ratio of 34.10 and a beta of 1.46. The company has a debt-to-equity ratio of 3.79, a quick ratio of 23.63 and a current ratio of 23.63.

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.