Wall Street analysts predict that Credit Acceptance (NASDAQ:CACC) will post earnings of $6.48 per share for the current fiscal quarter, Zacks reports. Two analysts have provided estimates for Credit Acceptance’s earnings. The lowest EPS estimate is $6.33 and the highest is $6.66. Credit Acceptance posted earnings of $5.09 per share during the same quarter last year, which suggests a positive year over year growth rate of 27.3%. The business is expected to report its next quarterly earnings results on Monday, July 30th.
According to Zacks, analysts expect that Credit Acceptance will report full year earnings of $26.04 per share for the current financial year, with EPS estimates ranging from $25.55 to $27.01. For the next fiscal year, analysts anticipate that the company will report earnings of $28.54 per share, with EPS estimates ranging from $26.87 to $29.78. Zacks’ EPS calculations are an average based on a survey of sell-side analysts that that provide coverage for Credit Acceptance.
Credit Acceptance (NASDAQ:CACC) last issued its quarterly earnings data on Thursday, May 3rd. The credit services provider reported $6.11 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $6.19 by ($0.08). The business had revenue of $295.60 million for the quarter, compared to analyst estimates of $296.16 million. Credit Acceptance had a net margin of 43.49% and a return on equity of 29.44%. The firm’s quarterly revenue was up 12.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $4.67 earnings per share.
A number of brokerages have recently issued reports on CACC. Zacks Investment Research upgraded shares of Credit Acceptance from a “sell” rating to a “hold” rating in a report on Wednesday. ValuEngine cut shares of Credit Acceptance from a “strong-buy” rating to a “buy” rating in a report on Wednesday, May 2nd. Oppenheimer set a $365.00 price objective on shares of Credit Acceptance and gave the company a “buy” rating in a report on Sunday, May 6th. BidaskClub cut shares of Credit Acceptance from a “buy” rating to a “hold” rating in a report on Saturday, April 28th. Finally, JMP Securities lifted their price objective on shares of Credit Acceptance from $195.00 to $260.00 and gave the company an “underperform” rating in a report on Wednesday, January 31st. Four equities research analysts have rated the stock with a sell rating, five have given a hold rating and two have assigned a buy rating to the company’s stock. The company has an average rating of “Hold” and an average price target of $290.88.
In related news, insider John S. Soave sold 2,500 shares of the business’s stock in a transaction dated Friday, March 16th. The shares were sold at an average price of $337.01, for a total transaction of $842,525.00. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CFO Kenneth Booth sold 2,000 shares of the business’s stock in a transaction dated Tuesday, March 6th. The stock was sold at an average price of $334.50, for a total transaction of $669,000.00. The disclosure for this sale can be found here. 5.40% of the stock is currently owned by insiders.
Institutional investors have recently added to or reduced their stakes in the stock. Glen Harbor Capital Management LLC purchased a new position in Credit Acceptance during the first quarter worth about $102,000. Meadow Creek Investment Management LLC purchased a new position in Credit Acceptance during the first quarter worth about $157,000. Harvest Fund Management Co. Ltd purchased a new position in Credit Acceptance during the fourth quarter worth about $198,000. CIBC Asset Management Inc purchased a new position in Credit Acceptance during the fourth quarter worth about $216,000. Finally, Xact Kapitalforvaltning AB purchased a new position in Credit Acceptance during the fourth quarter worth about $222,000. Institutional investors and hedge funds own 70.12% of the company’s stock.
Shares of NASDAQ CACC opened at $344.90 on Friday. The stock has a market cap of $6.54 billion, a PE ratio of 16.87, a price-to-earnings-growth ratio of 0.71 and a beta of 0.57. Credit Acceptance has a 1 year low of $210.26 and a 1 year high of $377.82. The company has a quick ratio of 22.16, a current ratio of 22.16 and a debt-to-equity ratio of 2.07.
About Credit Acceptance
Credit Acceptance Corporation provides financing programs, and related products and services to independent and franchised automobile dealers in the United States. The company advances money to dealers in exchange for the right to service the underlying consumer loans; and buys the consumer loans from the dealers and keeps various amounts collected from the consumers.
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