Credit Acceptance Corporation (NASDAQ:CACC): A Stocks With Stellar Fundamentals?

Credit Acceptance Corporation (NASDAQ:CACC) previous close was $411.10 while the outstanding shares total 18.19M. The firm has a beta of 1.28, a 12-month trailing P/E ratio of 19.71, and a growth ratio of 0.98. CACC’s shares traded higher over the last trading session, gaining 2.20% on 06/29/20. The shares fell to a low of $372.01 before closing at $420.16. Intraday shares traded counted 0.29 million, which was 0.08% higher than its 30-day average trading volume of 291.72K. The stock’s Relative Strength Index (RSI) is 53.89, with weekly volatility at 5.74% and ATR at 24.45. The CACC stock’s 52-week price range has touched low of $199.00 and a $499.61 high.

Investors have identified the Credit Services company Credit Acceptance Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $7.62 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Credit Acceptance Corporation (CACC) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For CACC, the company has in raw cash 433.8 million on their books with 79.9 million currently as liabilities. How the trend is over time is what investors should be concerned about. In terms of their assets, the company currently has 7175100000 million total, with 250700000 million as their total liabilities.

CACC were able to record 226.9 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by -83.9 million. In cash movements, the company had a total of 231.3 million as operating cash flow.

Potential earnings growth for Credit Acceptance Corporation (CACC)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Credit Acceptance Corporation recorded a total of 389.1 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 9.07% coming in sequential stages and their sales for the third quarter increasing by 0.82%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 389.1 million trying to sell their products during the last quarter, with the result yielding a gross income of 433.8 million. This allows shareholders to hold on to 18.19M with the revenue now reading -4.61 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (3.82 cents a share).

Having a look at the company’s valuation, the company is expected to record 34.70 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on CACC sounds very interesting.

Is the stock of CACC attractive?

In related news, Sr. Vice President & Treasurer, BUSK DOUGLAS W sold 1,500 shares of the company’s stock in a transaction that recorded on Jun 08. The sale was performed at an average price of 484.49, for a total value of 726,736. As the sale deal closes, the Chief Legal Officer, PEARCE CHARLES A now sold 1,500 shares of the company’s stock, valued at 743,982. Also, Director, Flanagan Glenda J sold 4,000 shares of the company’s stock in a deal that was recorded on Jun 05. The shares were price at an average price of 475.69 per share, with a total market value of 1,902,740. Following this completion of acquisition, the Director, Flanagan Glenda J now holds 1,000 shares of the company’s stock, valued at 475,740. In the last 6 months, insiders have changed their ownership in shares of company stock by 13.20%.

0 out of 7 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on Credit Acceptance Corporation. 4 analysts has assigned a Sell rating on the CACC stock. The 12-month mean consensus price target for the company’s shares has been set at $226.29.