Jonathan Lum, the Chief Operating Officer of Credit Acceptance Corp (NASDAQ:CACC), recently sold 552 shares of the company’s common stock. The shares were sold at a price of $489.90 each, totaling approximately $270,424. Following this transaction, Lum holds 31,493 shares directly, which includes 23,884 unvested restricted stock units under the company's Incentive Compensation Plan.
In addition to his current holdings, Lum has employee stock options that allow him to purchase an additional 37,500 shares at an exercise price of $333.94, with these options set to expire on December 30, 2026.
In other recent news, Credit Acceptance Corp. reported mixed results in its third-quarter earnings. The company disclosed a diluted GAAP EPS of $6.35, falling short of TD Cowen's estimate of $7.43 and the financial sector consensus of $7.77. This shortfall was attributed to several factors including a higher provision for loan losses, increased operating expenses, and lower revenue. Despite these challenges, Credit Acceptance also reported an adjusted EPS of $8.79, which was still below the $9.21 estimate projected by TD Cowen.
Following these developments, TD Cowen revised its price target for Credit Acceptance, lowering it to $380 from the previous $400 while maintaining a Sell rating on the stock. In addition, Credit Acceptance presented a mixed financial picture with a record growth in loan unit and dollar volume, an 18.6% increase in its adjusted loan portfolio now valued at $8.9 billion, and a slight dip in forecasted net cash flows.
The company's market share in its core segment has grown to 6.2%, with the financing of 95,670 contracts and $1.3 billion collected. Credit Acceptance also added 1,038 new dealers, raising the total to 10,678 active dealers. These are the recent developments for Credit Acceptance Corp.
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