Credit Acceptance Corp. (NASDAQ:CACC) Sees Large Growth in Short Interest

Credit Acceptance Corp. (NASDAQ:CACC) was the target of a large growth in short interest in December. As of December 31st, there was short interest totalling 1,060,000 shares, a growth of 10.4% from the December 15th total of 960,000 shares. Based on an average trading volume of 114,700 shares, the days-to-cover ratio is currently 9.2 days. Currently, 8.5% of the company’s stock are sold short.

In other Credit Acceptance news, CFO Kenneth Booth bought 1,250 shares of Credit Acceptance stock in a transaction that occurred on Tuesday, November 5th. The shares were acquired at an average price of $410.61 per share, for a total transaction of $513,262.50. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Charles A. Pearce sold 1,000 shares of Credit Acceptance stock in a transaction on Monday, December 16th. The shares were sold at an average price of $442.43, for a total transaction of $442,430.00. The disclosure for this sale can be found here. Insiders have sold a total of 40,437 shares of company stock worth $17,583,369 in the last 90 days. Company insiders own 5.00% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in CACC. Nuveen Asset Management LLC increased its position in shares of Credit Acceptance by 390.9% in the 2nd quarter. Nuveen Asset Management LLC now owns 163,973 shares of the credit services provider’s stock worth $79,336,000 after purchasing an additional 130,573 shares during the last quarter. Renaissance Technologies LLC increased its position in shares of Credit Acceptance by 2,684.5% in the 2nd quarter. Renaissance Technologies LLC now owns 47,003 shares of the credit services provider’s stock worth $22,741,000 after purchasing an additional 45,315 shares during the last quarter. Victory Capital Management Inc. increased its position in shares of Credit Acceptance by 339.4% in the 2nd quarter. Victory Capital Management Inc. now owns 30,533 shares of the credit services provider’s stock worth $14,773,000 after purchasing an additional 23,584 shares during the last quarter. Bank of America Corp DE increased its position in shares of Credit Acceptance by 179.0% in the 2nd quarter. Bank of America Corp DE now owns 32,789 shares of the credit services provider’s stock worth $15,865,000 after purchasing an additional 21,038 shares during the last quarter. Finally, AQR Capital Management LLC increased its position in shares of Credit Acceptance by 13.5% in the 2nd quarter. AQR Capital Management LLC now owns 139,580 shares of the credit services provider’s stock worth $66,155,000 after purchasing an additional 16,649 shares during the last quarter. 59.63% of the stock is owned by institutional investors.

A number of brokerages have commented on CACC. ValuEngine upgraded shares of Credit Acceptance from a “sell” rating to a “hold” rating in a report on Friday, January 3rd. BMO Capital Markets cut their price objective on shares of Credit Acceptance to $472.00 and set an “in-line” rating on the stock in a report on Tuesday, November 5th. BidaskClub lowered shares of Credit Acceptance from a “sell” rating to a “strong sell” rating in a report on Wednesday, October 30th. Credit Suisse Group boosted their price objective on shares of Credit Acceptance from $380.00 to $390.00 and gave the stock an “underperform” rating in a report on Thursday, November 14th. Finally, Stephens upgraded shares of Credit Acceptance from an “underweight” rating to an “equal weight” rating in a report on Friday, January 3rd. Three equities research analysts have rated the stock with a sell rating and six have assigned a hold rating to the company’s stock. Credit Acceptance currently has an average rating of “Hold” and an average price target of $444.17.

Shares of CACC stock opened at $441.42 on Tuesday. Credit Acceptance has a 12 month low of $385.36 and a 12 month high of $509.99. The company has a debt-to-equity ratio of 1.75, a current ratio of 29.49 and a quick ratio of 29.49. The firm has a market capitalization of $8.19 billion, a P/E ratio of 15.55, a P/E/G ratio of 1.86 and a beta of 0.67. The company’s fifty day moving average price is $437.66 and its two-hundred day moving average price is $455.90.

Credit Acceptance (NASDAQ:CACC) last issued its quarterly earnings data on Friday, November 1st. The credit services provider reported $8.89 EPS for the quarter, topping analysts’ consensus estimates of $8.86 by $0.03. The firm had revenue of $378.70 million for the quarter, compared to analyst estimates of $380.69 million. Credit Acceptance had a net margin of 44.69% and a return on equity of 29.54%. The firm’s revenue was up 14.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $7.56 EPS. On average, sell-side analysts anticipate that Credit Acceptance will post 34.69 EPS for the current year.

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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