Credit Acceptance Corp. (CACC) is Downgraded by Compass Point to Sell, Lowers Price Target to $ 170

Credit Acceptance Corp. (CACC) was Downgraded by Compass Point to ” Sell” while Lowering the Price Target of the company shares to $ 170 from a previous price target of $170 . Earlier the firm had a rating of “Neutral ” on the company shares. Compass Point advised their investors in a research report released on Sep 6, 2016.

Many Wall Street Analysts have commented on Credit Acceptance Corp.. Company shares were Reiterated by Compass Point on Aug 1, 2016 to “Neutral”, Firm has raised the Price Target to $ 170 from a previous price target of $160 .Credit Acceptance Corp. was Downgraded by Credit Suisse to ” Underperform” on Jul 27, 2016.

On the company’s financial health, Credit Acceptance Corp. reported $4.38 EPS for the quarter, beating the analyst consensus estimate by $ 0.58 according to the earnings call on Jul 29, 2016. Analyst had a consensus of $3.80. The company had revenue of $238.50 million for the quarter, compared to analysts expectations of $232.37 million. The company’s revenue was up 17.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $3.60 EPS.

Credit Acceptance Corp. opened for trading at $199.52 and hit $203.37 on the upside on Thursday, eventually ending the session at $200.71, with a gain of 0.53% or 1.06 points. The heightened volatility saw the trading volume jump to 1,57,510 shares. Company has a market cap of $4,080 M.

In a different news, on Mar 11, 2016, Donald A Foss (Chairman) sold 400 shares at $220.10 per share price. According to the SEC, on Nov 20, 2015, Kenneth Booth (CFO) purchased 5,000 shares at $164.52 per share price. On Sep 15, 2015, Brett A Roberts (Chief Executive Officer) sold 346 shares at $233.50 per share price, according to the Form-4 filing with the securities and exchange commission.

Credit Acceptance Corporation (Credit Acceptance) is a 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 customers responding to advertisements for it products. The Company has two programs: the Portfolio Program and the Purchase Program. Under the Portfolio Program it 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 all amounts collected from the consumer. Its target market is independent and franchised automobile dealers in the United States. It provides dealers the ability to offer vehicle service contracts to consumers through its relationships with third-party providers (TPPs).

Credit Acceptance Corp.

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Credit Acceptance Corp. - Is it time to Sell?

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