Credit Acceptance (NASDAQ:CACC) Shares Gap Up After Earnings Beat

Shares of Credit Acceptance Co. (NASDAQ:CACC) gapped up prior to trading on Friday following a stronger than expected earnings report. 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 (EPS) for the quarter, beating the consensus estimate of $7.70 by $2.47. Credit Acceptance had a net margin of 9.08% and a return on equity of 29.18%.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on CACC. StockNews.com lowered shares of Credit Acceptance from a “buy” rating to a “hold” rating in a research report on Thursday, January 23rd. Stephens initiated coverage on shares of Credit Acceptance in a research report on Wednesday, November 13th. They set an “equal weight” rating and a $452.00 price target on the stock. Finally, TD Cowen reduced their price target on Credit Acceptance from $400.00 to $380.00 and set a “sell” rating on the stock in a report on Friday, November 1st.

Insider Buying and Selling

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of CACC. Eagle Bay Advisors LLC purchased a new stake in shares of Credit Acceptance during the fourth quarter worth about $28,000. Quest Partners LLC lifted its position in shares of Credit Acceptance by 11,900.0% in the 3rd quarter. Quest Partners LLC now owns 120 shares of the credit services provider’s stock worth $53,000 after buying an additional 119 shares during the last quarter. nVerses Capital LLC boosted its stake in Credit Acceptance by 200.0% in the third quarter. nVerses Capital LLC now owns 300 shares of the credit services provider’s stock valued at $133,000 after acquiring an additional 200 shares during the period. SG Americas Securities LLC bought a new position in shares of Credit Acceptance during the fourth quarter worth about $142,000. Finally, Point72 Hong Kong Ltd acquired a new position in Credit Acceptance during the 3rd quarter valued at about $177,000. Institutional investors and hedge funds own 81.71% of the company’s stock.

Credit Acceptance Stock Up 4.2 %

The company has a quick ratio of 23.63, a current ratio of 23.63 and a debt-to-equity ratio of 3.79. The stock’s 50 day moving average is $482.31 and its 200 day moving average is $475.16. The firm has a market cap of $6.49 billion, a price-to-earnings ratio of 35.82 and a beta of 1.46.

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.