Short Interest in Credit Acceptance Co. (NASDAQ:CACC) Declines By 14.6%

Credit Acceptance Co. (NASDAQ:CACC) was the target of a significant drop in short interest during the month of November. As of November 15th, there was short interest totalling 454,100 shares, a drop of 14.6% from the October 31st total of 531,900 shares. Based on an average daily volume of 61,400 shares, the short-interest ratio is currently 7.4 days. Approximately 7.2% of the shares of the company are sold short.

Analysts Set New Price Targets

Several research firms recently weighed in on CACC. StockNews.com upgraded Credit Acceptance from a “hold” rating to a “buy” rating in a research report on Tuesday, November 12th. Stephens began coverage on Credit Acceptance in a research note on Wednesday, November 13th. They issued an “equal weight” rating and a $452.00 price objective on the stock. Finally, TD Cowen cut their price objective on Credit Acceptance from $400.00 to $380.00 and set a “sell” rating for the company in a research note on Friday, November 1st.

Credit Acceptance Price Performance

Shares of CACC stock traded up $3.46 on Friday, hitting $497.70. 51,011 shares of the stock traded hands, compared to its average volume of 85,532. The firm has a market cap of $6.03 billion, a price-to-earnings ratio of 33.43 and a beta of 1.42. The company has a debt-to-equity ratio of 3.79, a current ratio of 23.63 and a quick ratio of 23.63. The firm has a 50 day simple moving average of $455.85 and a two-hundred day simple moving average of $479.97. Credit Acceptance has a 52 week low of $409.22 and a 52 week high of $616.66.

Credit Acceptance (NASDAQ:CACC) last posted its quarterly earnings results on Wednesday, October 30th. The credit services provider reported $8.79 EPS for the quarter, beating analysts’ consensus estimates of $7.88 by $0.91. The business had revenue of $550.30 million for the quarter, compared to analysts’ expectations of $548.13 million. Credit Acceptance had a return on equity of 29.18% and a net margin of 9.08%. The business’s quarterly revenue was up 15.0% on a year-over-year basis. During the same period last year, the firm earned $10.70 earnings per share. As a group, equities research analysts predict that Credit Acceptance will post 36.77 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Credit Acceptance news, insider Thomas W. Smith sold 1,200 shares of the stock in a transaction that occurred on Monday, September 9th. The shares were sold at an average price of $451.01, for a total value of $541,212.00. Following the transaction, the insider now directly owns 74,450 shares in the company, valued at approximately $33,577,694.50. This trade represents a 1.59 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 5.30% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. nVerses Capital LLC bought a new position in shares of Credit Acceptance during the 2nd quarter valued at about $51,000. Quest Partners LLC raised its holdings in shares of Credit Acceptance by 11,900.0% during the 3rd quarter. Quest Partners LLC now owns 120 shares of the credit services provider’s stock worth $53,000 after acquiring an additional 119 shares in the last quarter. Point72 Hong Kong Ltd bought a new position in shares of Credit Acceptance during the 3rd quarter valued at approximately $177,000. Headlands Technologies LLC grew its holdings in shares of Credit Acceptance by 24,850.0% in the second quarter. Headlands Technologies LLC now owns 499 shares of the credit services provider’s stock valued at $257,000 after purchasing an additional 497 shares in the last quarter. Finally, Creative Planning purchased a new position in shares of Credit Acceptance in the second quarter valued at $282,000. 81.71% of the stock is currently owned by institutional investors.

About Credit Acceptance

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.