Credit Acceptance (NASDAQ:CACC) Posts Earnings Results, Beats Expectations By $0.91 EPS

Credit Acceptance (NASDAQ:CACC - Get Free Report) issued its quarterly earnings results on Wednesday. The credit services provider reported $8.79 earnings per share for the quarter, topping the consensus estimate of $7.88 by $0.91, Briefing.com reports. Credit Acceptance had a return on equity of 30.77% and a net margin of 9.01%. The firm had revenue of $550.30 million for the quarter, compared to the consensus estimate of $548.13 million. During the same period in the prior year, the business posted $10.70 earnings per share. The company's revenue for the quarter was up 15.0% on a year-over-year basis.

Credit Acceptance Trading Down 8.0 %

CACC traded down $36.93 during trading on Thursday, hitting $425.00. 161,465 shares of the stock were exchanged, compared to its average volume of 57,095. The firm has a 50 day simple moving average of $455.23 and a 200 day simple moving average of $490.32. The firm has a market cap of $5.15 billion, a price-to-earnings ratio of 29.57 and a beta of 1.42. Credit Acceptance has a 1 year low of $379.77 and a 1 year high of $616.66. The company has a debt-to-equity ratio of 3.77, a quick ratio of 19.15 and a current ratio of 19.15.

Insiders Place Their Bets

In other Credit Acceptance news, insider Thomas W. Smith sold 1,200 shares of the firm's stock in a transaction on Monday, September 9th. The stock was sold at an average price of $451.01, for a total transaction of $541,212.00. Following the transaction, the insider now directly owns 74,450 shares in the company, valued at $33,577,694.50. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 5.30% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Separately, TD Cowen reduced their price objective on Credit Acceptance from $440.00 to $400.00 and set a "sell" rating on the stock in a report on Thursday, August 1st. One analyst has rated the stock with a sell rating, two have issued a hold rating and one has issued a buy rating to the company's stock. According to MarketBeat.com, Credit Acceptance presently has an average rating of "Hold" and a consensus target price of $395.67.

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.