Zacks Investment Research downgraded shares of Credit Acceptance (NASDAQ:CACC) from a strong-buy rating to a hold rating in a report issued on Tuesday morning.
According to Zacks, “Credit Acceptance Corporation is a specialized financial services company which provides funding, receivables management, collection, sales training and related services to automobile dealers. “
Several other equities analysts have also recently issued reports on CACC. BidaskClub upgraded shares of Credit Acceptance from a buy rating to a strong-buy rating in a research report on Tuesday, December 12th. Stephens set a $257.00 price target on shares of Credit Acceptance and gave the company a sell rating in a research report on Wednesday, January 3rd. Credit Suisse Group restated a sell rating and issued a $270.00 price target on shares of Credit Acceptance in a research report on Monday, January 8th. Oppenheimer started coverage on shares of Credit Acceptance in a research report on Monday, January 8th. They issued a buy rating and a $355.00 price target for the company. Finally, JMP Securities upped their price target on shares of Credit Acceptance from $195.00 to $260.00 and gave the company an underperform rating in a research report on Wednesday, January 31st. Four analysts have rated the stock with a sell rating, five have issued a hold rating, one has assigned a buy rating and two have issued a strong buy rating to the company. Credit Acceptance currently has an average rating of Hold and an average price target of $283.22.
Credit Acceptance (NASDAQ:CACC) last announced its quarterly earnings results on Tuesday, January 30th. The credit services provider reported $5.16 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $5.53 by ($0.37). Credit Acceptance had a net margin of 42.36% and a return on equity of 30.18%. The business had revenue of $287.30 million during the quarter, compared to analyst estimates of $287.37 million. During the same quarter last year, the company posted $4.79 earnings per share. The company’s revenue was up 12.1% compared to the same quarter last year. equities research analysts predict that Credit Acceptance will post 26.26 earnings per share for the current year.
In other news, CFO Kenneth Booth sold 2,000 shares of the company’s stock in a transaction on Tuesday, March 6th. The shares were sold at an average price of $334.50, for a total value of $669,000.00. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, major shareholder Jill Foss Watson sold 35,318 shares of the company’s stock in a transaction on Thursday, December 28th. The shares were sold at an average price of $326.14, for a total transaction of $11,518,612.52. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 117,925 shares of company stock worth $38,890,579. Insiders own 5.80% of the company’s stock.
Large investors have recently bought and sold shares of the company. The Manufacturers Life Insurance Company boosted its stake in Credit Acceptance by 6.9% during the second quarter. The Manufacturers Life Insurance Company now owns 619 shares of the credit services provider’s stock worth $159,000 after acquiring an additional 40 shares in the last quarter. Pacer Advisors Inc. boosted its stake in Credit Acceptance by 11.6% during the third quarter. Pacer Advisors Inc. now owns 2,413 shares of the credit services provider’s stock worth $676,000 after acquiring an additional 250 shares in the last quarter. M&T Bank Corp boosted its stake in Credit Acceptance by 19.6% during the fourth quarter. M&T Bank Corp now owns 1,853 shares of the credit services provider’s stock worth $600,000 after acquiring an additional 304 shares in the last quarter. Advisory Services Network LLC boosted its stake in Credit Acceptance by 87.9% during the fourth quarter. Advisory Services Network LLC now owns 932 shares of the credit services provider’s stock worth $301,000 after acquiring an additional 436 shares in the last quarter. Finally, Ladenburg Thalmann Financial Services Inc. boosted its stake in Credit Acceptance by 437.0% during the third quarter. Ladenburg Thalmann Financial Services Inc. now owns 537 shares of the credit services provider’s stock worth $150,000 after acquiring an additional 437 shares in the last quarter. 70.38% of the stock is currently owned by institutional investors.
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About Credit Acceptance
Credit Acceptance Corporation offers financing programs that enable automobile dealers to sell vehicles to consumers. The Company’s financing programs are offered through a network of automobile dealers. The Company has two Dealers financing programs: the Portfolio Program and the Purchase Program. Under the Portfolio Program, the Company advances money to dealers (Dealer Loan) in exchange for the right to service the underlying consumer loans.
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