Credit Acceptance’s (CACC) Buy Rating Reiterated at Zacks Investment Research

Zacks Investment Research restated their buy rating on shares of Credit Acceptance (NASDAQ:CACC) in a report published on Monday. They currently have a $438.00 price target on the credit services provider’s stock.

According to Zacks, “Credit Acceptance’s shares have outperformed the industry in the last six months. The company surpassed the Zacks Consensus Estimate for earnings in two of the trailing four quarters. Its third-quarter 2018 results were aided by an increase in revenues and lower provisions, partly offset by higher expenses. Continued rise in revenues, primarily driven by higher finance charges and increase in consumer loans, are expected to aid growth. While elevated expenses and high debt levels remain near-term concerns, an efficient share repurchase program continues to boost investors’ confidence in the stock.”

Several other research analysts have also recently issued reports on the stock. BidaskClub cut shares of Credit Acceptance from a buy rating to a hold rating in a report on Tuesday, October 2nd. Oppenheimer set a $400.00 target price on shares of Credit Acceptance and gave the company a buy rating in a report on Tuesday, July 31st. Credit Suisse Group upped their target price on shares of Credit Acceptance from $310.00 to $335.00 and gave the company an underperform rating in a report on Tuesday, October 30th. JMP Securities upped their target price on shares of Credit Acceptance from $260.00 to $350.00 and gave the company a market underperform rating in a report on Thursday, August 2nd. Finally, BMO Capital Markets upped their target price on shares of Credit Acceptance from $312.00 to $333.00 and gave the company a market perform rating in a report on Thursday, November 1st. Three research analysts have rated the stock with a sell rating, four have issued a hold rating and three have issued a buy rating to the stock. Credit Acceptance has an average rating of Hold and a consensus price target of $357.71.

Shares of Credit Acceptance stock traded down $1.60 during trading hours on Monday, hitting $413.28. The company had a trading volume of 9 shares, compared to its average volume of 115,061. Credit Acceptance has a twelve month low of $278.38 and a twelve month high of $467.26. The company has a current ratio of 36.75, a quick ratio of 36.75 and a debt-to-equity ratio of 1.97. The stock has a market cap of $7.93 billion, a price-to-earnings ratio of 20.19, a PEG ratio of 0.88 and a beta of 0.56.

Credit Acceptance (NASDAQ:CACC) last issued its earnings results on Monday, October 29th. The credit services provider reported $7.75 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.90 by $0.85. Credit Acceptance had a net margin of 48.70% and a return on equity of 28.83%. The business had revenue of $332.00 million during the quarter, compared to analysts’ expectations of $327.45 million. During the same quarter in the prior year, the business posted $5.43 EPS. The company’s revenue for the quarter was up 16.9% on a year-over-year basis. On average, analysts forecast that Credit Acceptance will post 27.08 earnings per share for the current fiscal year.

In related news, insider Prescott General Partners Llc sold 36,900 shares of the company’s stock in a transaction on Monday, August 27th. The shares were sold at an average price of $453.38, for a total value of $16,729,722.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Arthur L. Smith sold 2,000 shares of the company’s stock in a transaction on Wednesday, August 22nd. The shares were sold at an average price of $460.98, for a total transaction of $921,960.00. The disclosure for this sale can be found here. In the last quarter, insiders sold 72,018 shares of company stock valued at $31,599,433. 5.40% of the stock is owned by insiders.

A number of hedge funds have recently added to or reduced their stakes in the stock. First Hawaiian Bank purchased a new position in Credit Acceptance during the 3rd quarter worth $178,000. Zurcher Kantonalbank Zurich Cantonalbank raised its position in Credit Acceptance by 57.9% during the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 616 shares of the credit services provider’s stock worth $218,000 after buying an additional 226 shares during the last quarter. Grandfield & Dodd LLC purchased a new position in Credit Acceptance during the 3rd quarter worth $224,000. Virtu Financial LLC purchased a new position in Credit Acceptance during the 3rd quarter worth $224,000. Finally, C M Bidwell & Associates Ltd. purchased a new position in Credit Acceptance during the 3rd quarter worth $245,000. Hedge funds and other institutional investors own 67.61% of the company’s stock.

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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