Credit Acceptance Corp. (NASDAQ:CACC) the technology solution provider for automobile dealer to manage finances, was once again the subject of analyst reports.
Consensus rating for the company is ‘Hold’ from across eight analysts offering commentary on the stock. Of the eight analysts, five of them recommend that investors retain their stock, while three of them are bearish, recommending selling.
The consensus rating did influence investor sentiments and share prices of the stock dipped by 1.53% on Tuesday.
The company has also witnessed insider selling activity on May 11, 2015. The Chief Executive Officer, Brett A.Roberts sold over 7,930 shares at $229.39 average price. The value of the transaction was $1,818,586.90, according to a SEC report filed by the company.
Earlier analyst ratings
Credit Acceptance Corp. (NASDAQ:CACC) has been subject to research notes by the analysts in recent months.
On June 30, 2015, the company was downgraded from ‘buy’ to ‘hold’ by analyst firm Zacks. Earlier on May 7, Credit Suisse had reiterated ‘neutral’ rating, while JMP Securities assigned a ‘market underperform’ rating, while revising the price target to $180 from $135.
Credit Acceptance Corp. (NASDAQ:CACC) financial programs give automobile dealers the agility to sell to consumers, despite issues with their credit. The financial program offers a network allowing dealers to sell to those buyers who are not within financing guidelines. The system works by way of references by customers and repeat sales. The mode of business is by advertising.
Once a non-financed buyer wants to buy a product, Credit Acceptance Corp. (NASDAQ:CACC) then advances money to the partner dealer to support the loan. There is a second method of Purchase program, where the company purchases Consumer Loans from the dealer and retains the amounts collected from the consumer.
On Wednesday, share prices of CACC posted substantial gains of as much as 4.32%, closing very close to a new 52-week high of $274.99.