Credit Acceptance Co. (NASDAQ:CACC) Short Interest Up 8.8% in December

Credit Acceptance Co. (NASDAQ:CACC) saw a significant growth in short interest during the month of December. As of December 15th, there was short interest totalling 493,800 shares, a growth of 8.8% from the November 30th total of 453,900 shares. Currently, 7.8% of the shares of the company are sold short. Based on an average trading volume of 63,600 shares, the days-to-cover ratio is currently 7.8 days.

Credit Acceptance Stock Performance

Credit Acceptance stock traded up $5.26 during mid-day trading on Wednesday, reaching $469.46. The company’s stock had a trading volume of 46,401 shares, compared to its average volume of 59,347. The firm’s fifty day moving average price is $466.46 and its two-hundred day moving average price is $478.67. The company has a debt-to-equity ratio of 3.79, a quick ratio of 23.63 and a current ratio of 23.63. Credit Acceptance has a 12-month low of $409.22 and a 12-month high of $616.66. The company has a market capitalization of $5.69 billion, a P/E ratio of 31.53 and a beta of 1.46.

Credit Acceptance (NASDAQ:CACC) last announced its quarterly earnings results on Wednesday, October 30th. The credit services provider reported $8.79 earnings per share for the quarter, beating the consensus estimate of $7.88 by $0.91. The company had revenue of $550.30 million during 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 firm’s quarterly revenue was up 15.0% compared to the same quarter last year. During the same period in the previous year, the business earned $10.70 earnings per share. Sell-side analysts predict that Credit Acceptance will post 36.54 EPS for the current fiscal year.

Wall Street Analyst Weigh In

CACC has been the subject of a number of recent research reports. TD Cowen decreased their target price on Credit Acceptance from $400.00 to $380.00 and set a “sell” rating for the company in a research report on Friday, November 1st. Stephens began coverage on Credit Acceptance in a report on Wednesday, November 13th. They issued an “equal weight” rating and a $452.00 price objective for the company. Finally, StockNews.com upgraded Credit Acceptance from a “hold” rating to a “buy” rating in a research note on Tuesday, November 12th.

Insider Activity at Credit Acceptance

In other news, COO Jonathan Lum sold 552 shares of the stock in a transaction that occurred on Tuesday, December 17th. The shares were sold at an average price of $489.90, for a total transaction of $270,424.80. Following the completion of the transaction, the chief operating officer now directly owns 31,493 shares of the company’s stock, valued at $15,428,420.70. This represents a 1.72 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 5.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Credit Acceptance

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Abrams Bison Investments LLC boosted its position in shares of Credit Acceptance by 30.5% in the third quarter. Abrams Bison Investments LLC now owns 228,306 shares of the credit services provider’s stock valued at $101,235,000 after acquiring an additional 53,306 shares during the period. Charles Schwab Investment Management Inc. lifted its stake in Credit Acceptance by 24.5% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 94,051 shares of the credit services provider’s stock worth $41,704,000 after purchasing an additional 18,530 shares in the last quarter. MIG Capital LLC boosted its holdings in Credit Acceptance by 18.7% in the 3rd quarter. MIG Capital LLC now owns 116,491 shares of the credit services provider’s stock valued at $51,654,000 after purchasing an additional 18,351 shares during the period. Alfreton Capital LLP grew its position in shares of Credit Acceptance by 22.7% during the 2nd quarter. Alfreton Capital LLP now owns 98,128 shares of the credit services provider’s stock valued at $50,505,000 after purchasing an additional 18,128 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its holdings in shares of Credit Acceptance by 4.1% in the second quarter. Dimensional Fund Advisors LP now owns 179,655 shares of the credit services provider’s stock worth $92,455,000 after purchasing an additional 7,064 shares during the period. 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.