Credit Acceptance (CACC) Trading Down 1.4% Following Analyst Downgrade

Credit Acceptance Corp. (NASDAQ:CACC) shares fell 1.4% during trading on Thursday after BMO Capital Markets lowered their price target on the stock from $312.00 to $295.00. BMO Capital Markets currently has a market perform rating on the stock. Credit Acceptance traded as low as $317.00 and last traded at $325.25. 132,581 shares traded hands during trading, a decline of 34% from the average session volume of 199,715 shares. The stock had previously closed at $329.71.

Several other analysts have also recently issued reports on the company. BidaskClub cut Credit Acceptance from a “strong-buy” rating to a “buy” rating in a research report on Wednesday. Oppenheimer increased their target price on Credit Acceptance from $355.00 to $387.00 and gave the company an “outperform” rating in a research report on Wednesday. JMP Securities increased their target price on Credit Acceptance from $195.00 to $260.00 and gave the company an “underperform” rating in a research report on Wednesday. Zacks Investment Research raised Credit Acceptance from a “hold” rating to a “strong-buy” rating and set a $390.00 target price on the stock in a research report on Friday, January 12th. Finally, Credit Suisse Group reaffirmed a “sell” rating and set a $270.00 target price on shares of Credit Acceptance in a research report on Monday, January 8th. Four analysts have rated the stock with a sell rating, four have assigned a hold rating, two have given a buy rating and one has given a strong buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and an average target price of $283.22.

In other news, major shareholder Jill Foss Watson sold 35,318 shares of the firm’s stock in a transaction on Thursday, December 28th. The stock was sold at an average price of $326.14, for a total value of $11,518,612.52. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders sold a total of 114,925 shares of company stock valued at $37,901,719 in the last three months. Insiders own 5.80% of the company’s stock.

Several institutional investors have recently bought and sold shares of CACC. Koch Industries Inc. acquired a new stake in shares of Credit Acceptance in the 2nd quarter worth $240,000. Goldman Sachs Group Inc. raised its stake in Credit Acceptance by 479.4% in the 2nd quarter. Goldman Sachs Group Inc. now owns 138,545 shares of the credit services provider’s stock worth $35,626,000 after acquiring an additional 114,632 shares during the last quarter. First Trust Advisors LP raised its stake in Credit Acceptance by 5,945.1% in the 3rd quarter. First Trust Advisors LP now owns 53,378 shares of the credit services provider’s stock worth $14,955,000 after acquiring an additional 52,495 shares during the last quarter. BlackRock Inc. raised its stake in Credit Acceptance by 11.4% in the 2nd quarter. BlackRock Inc. now owns 446,139 shares of the credit services provider’s stock worth $114,720,000 after acquiring an additional 45,768 shares during the last quarter. Finally, Shell Asset Management Co. purchased a new position in Credit Acceptance in the 3rd quarter worth $3,456,000. 70.75% of the stock is owned by hedge funds and other institutional investors.

The company has a market capitalization of $6,994.16, a P/E ratio of 13.54, a PEG ratio of 0.85 and a beta of 0.54. The company has a quick ratio of 17.63, a current ratio of 17.63 and a debt-to-equity ratio of 2.12.

Credit Acceptance (NASDAQ:CACC) last issued its earnings results on Tuesday, January 30th. The credit services provider reported $5.16 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $5.53 by ($0.37). The firm had revenue of $287.30 million during the quarter, compared to analysts’ expectations of $287.37 million. Credit Acceptance had a return on equity of 31.87% and a net margin of 42.36%. The business’s revenue was up 12.1% on a year-over-year basis. During the same quarter last year, the business earned $4.79 EPS. research analysts predict that Credit Acceptance Corp. will post 23.7 earnings per share for the current year.

ILLEGAL ACTIVITY NOTICE: This piece was first posted by Dispatch Tribunal and is the sole property of of Dispatch Tribunal. If you are viewing this piece on another domain, it was illegally stolen and reposted in violation of US & international copyright legislation. The original version of this piece can be accessed at https://www.dispatchtribunal.com/2018/02/02/credit-acceptance-cacc-trading-down-1-4-following-analyst-downgrade.html.

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.

Receive News & Ratings for Credit Acceptance Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Credit Acceptance and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply