Credit Acceptance (NASDAQ:CACC) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued on Friday, January 12th. The firm currently has a $390.00 target price on the credit services provider’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 22.21% from the company’s current price.
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. “
A number of other brokerages have also commented on CACC. Oppenheimer assumed coverage on shares of Credit Acceptance in a report on Monday, January 8th. They issued a “buy” rating and a $355.00 price target on the stock. Credit Suisse Group reaffirmed a “sell” rating and set a $270.00 target price on shares of Credit Acceptance in a report on Monday, January 8th. BidaskClub lowered shares of Credit Acceptance from a “strong-buy” rating to a “buy” rating in a report on Saturday, January 6th. Stephens set a $257.00 target price on shares of Credit Acceptance and gave the company a “sell” rating in a report on Wednesday, January 3rd. Finally, Bank of America increased their target price on shares of Credit Acceptance from $195.00 to $230.00 and gave the company an “underperform” rating in a report on Tuesday, October 31st. Four equities research analysts have rated the stock with a sell rating, four have assigned a hold rating, two have assigned a buy rating and one has given a strong buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus price target of $283.22.
Credit Acceptance (NASDAQ:CACC) opened at $319.13 on Friday. The company has a market cap of $6,162.42, a price-to-earnings ratio of 15.58, a PEG ratio of 0.79 and a beta of 0.57. Credit Acceptance has a twelve month low of $182.50 and a twelve month high of $377.82. 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 quarterly earnings results on Tuesday, January 30th. The credit services provider reported $5.16 EPS for the quarter, missing the Zacks’ consensus estimate of $5.53 by ($0.37). The company had revenue of $287.30 million during the quarter, compared to the consensus estimate of $287.37 million. Credit Acceptance had a return on equity of 31.87% and a net margin of 42.36%. Credit Acceptance’s quarterly revenue was up 12.1% on a year-over-year basis. During the same period in the previous year, the company earned $4.79 EPS. equities research analysts expect that Credit Acceptance will post 22.58 earnings per share for the current fiscal year.
In other Credit Acceptance news, major shareholder Jill Foss Watson sold 30,038 shares of the stock in a transaction on Thursday, December 21st. The shares were sold at an average price of $330.83, for a total transaction of $9,937,471.54. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders have sold a total of 114,925 shares of company stock valued at $37,901,719 in the last three months. 5.80% of the stock is currently owned by corporate insiders.
Several large investors have recently bought and sold shares of the company. Klingman & Associates LLC purchased a new stake in shares of Credit Acceptance in the 4th quarter worth about $464,000. CIBC Asset Management Inc purchased a new stake in shares of Credit Acceptance in the 4th quarter worth about $216,000. Covey Capital Advisors LLC purchased a new stake in shares of Credit Acceptance in the 4th quarter worth about $243,000. Chicago Equity Partners LLC lifted its position in shares of Credit Acceptance by 124.4% in the 4th quarter. Chicago Equity Partners LLC now owns 18,095 shares of the credit services provider’s stock worth $5,853,000 after purchasing an additional 10,030 shares during the period. Finally, LMR Partners LLP lifted its position in shares of Credit Acceptance by 4.4% in the 4th quarter. LMR Partners LLP now owns 89,925 shares of the credit services provider’s stock worth $29,089,000 after purchasing an additional 3,823 shares during the period. 70.77% of the stock is owned by hedge funds and other 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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