.png "Credit Acceptance Corp (NASDAQ: CACC)")
In a report released today, Dominick Gabriele from Oppenheimer maintained a Buy rating on Credit Acceptance Corp (NASDAQ: CACC), with a price target of $420. The company’s shares closed yesterday at $390.70.
Gabriele wrote:
“CACC reported strong 3Q18 GAAP EPS of $7.75 vs. our/consensus $6.57/$6.90 estimates. There were ~$0.20 of special items and thus adj. EPS was $7.56, a solid beat led by better top line/better credit. We’ve been positive on the name due to a ramp in active dealers and accelerating productivity per dealer resulting in faster loan growth. This quarter the acceleration trend was broken with YoY growth in active dealers slowing to 12.2% from 13% in 2Q18 while productivity contracted 2.5% after expanding 6.1% in 2Q18. Likely the current +20% P/E premium to financials is only justified if this quarter is an outlier and acceleration resumes in 4Q18. We could see investors taking some chips off the table, given outperformance CACC has had since beginning of 2018. Maintain Outperform; PT to $420 from $425.”
According to TipRanks.com, Gabriele is a 1-star analyst with an average return of -6.3% and a 0.0% success rate. Gabriele covers the Financial sector, focusing on stocks such as Capital One Financial, Synchrony Financial, and American Express.
Credit Acceptance Corp has an analyst consensus of Hold, with a price target consensus of $382.33.
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Based on Credit Acceptance Corp’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $151 million. In comparison, last year the company had a net profit of $101 million.
Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is negative on the stock.
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Credit Acceptance Corp. engages in the the provision of dealer financing programs that enables automobile dealers to sell vehicles to consumers, regardless of its credit history. Its financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers.
