Price Action Report: Could Credit Acceptance Corp. Change Direction After Today’s Big Decline?

Price Action Report: Could Credit Acceptance Corp. Change Direction After Today's Big Decline?

The stock of Credit Acceptance Corp. (NASDAQ:CACC) is a huge mover today! The stock decreased 4.26% or $8.57 during the last trading session, hitting $192.5. About 253,340 shares traded hands or 29.89% up from the average. Credit Acceptance Corp. (NASDAQ:CACC) has declined 1.98% since March 1, 2016 and is downtrending. It has underperformed by 14.19% the S&P500.
The move comes after 5 months negative chart setup for the $4.04 billion company. It was reported on Oct, 4 by Barchart.com. We have $180.95 PT which if reached, will make NASDAQ:CACC worth $242.40M less.

Analysts await Credit Acceptance Corp. (NASDAQ:CACC) to report earnings on November, 3. They expect $4.27 earnings per share, up 13.26% or $0.50 from last year’s $3.77 per share. CACC’s profit will be $89.61 million for 11.27 P/E if the $4.27 EPS becomes a reality. After $4.38 actual earnings per share reported by Credit Acceptance Corp. for the previous quarter, Wall Street now forecasts -2.51% negative EPS growth.

Credit Acceptance Corp. (NASDAQ:CACC) Ratings Coverage

Out of 5 analysts covering Credit Acceptance Corp (NASDAQ:CACC), 0 rate it a “Buy”, 4 “Sell”, while 1 “Hold”. This means 0 are positive. Credit Acceptance Corp has been the topic of 11 analyst reports since July 31, 2015 according to StockzIntelligence Inc. The rating was downgraded by Macquarie Research on Wednesday, May 11 to “Underperform”. As per Tuesday, August 4, the company rating was downgraded by Zacks. As per Monday, June 20, the company rating was upgraded by Janney Capital. The firm has “Market Perform” rating given on Wednesday, August 26 by JMP Securities. The firm has “Market Underperform” rating given on Wednesday, March 16 by JMP Securities. Credit Suisse downgraded Credit Acceptance Corp. (NASDAQ:CACC) on Wednesday, July 27 to “Underperform” rating. On Tuesday, November 10 the stock rating was upgraded by Compass Point to “Neutral”. On Tuesday, September 6 the stock rating was downgraded by Compass Point to “Sell”.

According to Zacks Investment Research, “Credit Acceptance Corporation is a specialized financial services company which provides funding, receivables management, collection, sales training and related services to automobile dealers.”

Insitutional Activity: The institutional sentiment decreased to 0.67 in Q2 2016. Its down 0.86, from 1.53 in 2016Q1. The ratio is negative, as 30 funds sold all Credit Acceptance Corp. shares owned while 60 reduced positions. 21 funds bought stakes while 39 increased positions. They now own 9.49 million shares or 16.21% less from 11.32 million shares in 2016Q1.
Fincl Bank Of America Corporation De has 0% invested in the company for 27,066 shares. Allen Mgmt Ltd Liability has 2,856 shares for 0.04% of their US portfolio. Raymond James & Associates holds 1,122 shares or 0% of its portfolio. Citadel Advsrs Ltd Com, a Illinois-based fund reported 6,266 shares. Moreover, Geode Cap Mgmt Ltd Liability Corp has 0.01% invested in Credit Acceptance Corp. (NASDAQ:CACC) for 69,168 shares. Ladenburg Thalmann Financial has 181 shares for 0% of their US portfolio. Omers Administration accumulated 0.01% or 2,200 shares. Blackrock Group holds 0% of its portfolio in Credit Acceptance Corp. (NASDAQ:CACC) for 4,229 shares. The Minnesota-based Walleye Trading Lc has invested 0% in Credit Acceptance Corp. (NASDAQ:CACC). Horizon Kinetics Limited Liability Corporation last reported 2,489 shares in the company. Moreover, 1St Glob has 0.11% invested in Credit Acceptance Corp. (NASDAQ:CACC) for 4,246 shares. Los Angeles Cap Mgmt And Equity accumulated 0% or 2,369 shares. Legal & General Public Limited Liability Company last reported 0% of its portfolio in the stock. Coatue Mngmt Ltd Llc owns 156,355 shares or 0.41% of their US portfolio. Alliancebernstein Limited Partnership last reported 0% of its portfolio in the stock.

Insider Transactions: Since April 22, 2016, the stock had 0 insider purchases, and 9 insider sales for $85.10 million net activity. The insider Watson Jill Foss sold 27,626 shares worth $5.55M. Apple Allan Victor also sold $40,650 worth of Credit Acceptance Corp. (NASDAQ:CACC) on Wednesday, August 24.

More recent Credit Acceptance Corp. (NASDAQ:CACC) news were published by: Seekingalpha.com which released: “Credit Acceptance Corp: Earn A 6.1% Annual Yield With These Bonds” on August 08, 2016. Also Seekingalpha.com published the news titled: “Credit Acceptance: A Structural Short” on September 21, 2016. Bloomberg.com‘s news article titled: “Subprime Auto Lender Credit Acceptance Subpoenaed by Maryland” with publication date: May 03, 2016 was also an interesting one.

CACC Company Profile

Credit Acceptance Corporation (Credit Acceptance), incorporated on August 23, 1972, is a well-known provider of financing programs to automobile dealers that enable them to sell vehicles to consumers. The Company’s financing programs are offered through a nationwide network of automobile dealers; from repeat and referral sales generated by customers, and from sales to clients responding to advertisements for its products. The Firm has two programs: the Portfolio Program and the Purchase Program. Under the Portfolio Program, the Company advances money to dealer (Dealer Loan) in exchange for the right to service the underlying consumer loans. Under the Purchase Program, the Company buys the consumer loans from the dealer (Purchased Loan) and keeps the amounts collected from the consumer. Dealer Loans and Purchased Loans are collectively referred to as Loans.

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