Credit Acceptance Stock Buy Hold or Sell Recommendation
| CACC Stock | USD 522.26 3.08 0.59% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Credit Acceptance is 'Buy'. Macroaxis provides Credit Acceptance buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CACC positions. The advice algorithm takes into account all of Credit Acceptance's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Credit Acceptance's buy or sell advice are summarized below:
Real Value 490.21 | Target Price 445.25 | Hype Value 519.92 | Market Value 522.26 | Naive Value 517.89 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Credit Acceptance given historical horizon and risk tolerance towards Credit Acceptance. When Macroaxis issues a 'buy' or 'sell' recommendation for Credit Acceptance, the advice is generated through an automated system that utilizes algorithms and statistical models.
Credit |
Execute Credit Acceptance Buy or Sell Advice
The Credit recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Credit Acceptance. Macroaxis does not own or have any residual interests in Credit Acceptance or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Credit Acceptance's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Buy
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Credit Acceptance Trading Alerts and Improvement Suggestions
| Credit Acceptance generated a negative expected return over the last 90 days | |
| Credit Acceptance has a poor financial position based on the latest SEC disclosures | |
| About 67.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from investors.com: Credit Acceptance Earns Technical Rating Upgrade |
Credit Acceptance Returns Distribution Density
The distribution of Credit Acceptance's historical returns is an attempt to chart the uncertainty of Credit Acceptance's future price movements. The chart of the probability distribution of Credit Acceptance daily returns describes the distribution of returns around its average expected value. We use Credit Acceptance price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Credit Acceptance returns is essential to provide solid investment advice for Credit Acceptance.
| Mean Return | 0.02 | Value At Risk | -2.39 | Potential Upside | 2.72 | Standard Deviation | 1.76 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Credit Acceptance historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Credit Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Credit Acceptance is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Credit Acceptance backward and forwards among themselves. Credit Acceptance's institutional investor refers to the entity that pools money to purchase Credit Acceptance's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Abrams Bison Investments, Llc | 2023-12-31 | 164 K | Rv Capital Gmbh | 2023-12-31 | 145.9 K | Kize Capital Lp | 2023-12-31 | 117 K | State Street Corporation | 2023-12-31 | 108.3 K | Geode Capital Management, Llc | 2023-12-31 | 104.8 K | Lmr Partners Llp | 2023-12-31 | 104 K | Hsbc Holdings Plc | 2023-12-31 | 102.1 K | Investmentaktiengesellschaft Fur Langfristige Investoren Tgv | 2023-12-31 | 102 K | Smith Thomas W | 2023-09-30 | 96.2 K | Prescott General Partners Llc | 2023-12-31 | 1.6 M | Hpm Partners Llc | 2023-12-31 | 887 K |
Credit Acceptance Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 188.4M | (121.5M) | 38M | (16.5M) | 53.2M | 50.5M | |
| Free Cash Flow | 785.5M | 976.7M | 1.1B | 1.2B | 1.2B | 1.1B | |
| Depreciation | 22.4M | 23.8M | 26.3M | 25.6M | 26.6M | 25.3M | |
| Other Non Cash Items | 78M | 563.6M | 8M | 481.7M | 738.6M | 915.3M | |
| Capital Expenditures | 25.1M | 26.8M | 8.5M | 7.6M | 3.1M | 3.8M | |
| Net Income | 656.1M | 421M | 958.3M | 535.8M | 286.1M | 271.8M | |
| End Period Cash Flow | 517.7M | 396.2M | 434.2M | 417.7M | 470.9M | 393.1M | |
| Change To Netincome | 171.1M | 638.1M | 77.5M | 510.5M | 587.1M | 616.4M | |
| Investments | (800.1M) | (476.5M) | 642.4M | (226.7M) | (1.2B) | (1.1B) | |
| Net Borrowings | 701.3M | 48.4M | (7.9M) | (41.5M) | (37.4M) | (35.5M) |
Credit Acceptance Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Credit Acceptance or Consumer Finance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Credit Acceptance's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Credit stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.11 | |
β | Beta against NYSE Composite | 1.52 | |
σ | Overall volatility | 1.76 | |
Ir | Information ratio | -0.04 |
Credit Acceptance Volatility Alert
Credit Acceptance has relatively low volatility with skewness of 1.38 and kurtosis of 4.68. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Credit Acceptance's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Credit Acceptance's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Credit Acceptance Fundamentals Vs Peers
Comparing Credit Acceptance's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Credit Acceptance's direct or indirect competition across all of the common fundamentals between Credit Acceptance and the related equities. This way, we can detect undervalued stocks with similar characteristics as Credit Acceptance or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Credit Acceptance's fundamental indicators could also be used in its relative valuation, which is a method of valuing Credit Acceptance by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Credit Acceptance to competition |
| Fundamentals | Credit Acceptance | Peer Average |
| Return On Equity | 0.17 | -0.31 |
| Return On Asset | 0.0394 | -0.14 |
| Profit Margin | 0.32 % | (1.27) % |
| Operating Margin | 0.47 % | (5.51) % |
| Current Valuation | 11.44 B | 16.62 B |
| Shares Outstanding | 12.3 M | 571.82 M |
| Shares Owned By Insiders | 39.90 % | 10.09 % |
| Shares Owned By Institutions | 66.97 % | 39.21 % |
| Number Of Shares Shorted | 629.13 K | 4.71 M |
| Price To Earning | 12.00 X | 28.72 X |
| Price To Book | 3.90 X | 9.51 X |
| Price To Sales | 7.59 X | 11.42 X |
| Revenue | 1.9 B | 9.43 B |
| Gross Profit | 1.14 B | 27.38 B |
| EBITDA | 367.6 M | 3.9 B |
| Net Income | 286.1 M | 570.98 M |
| Cash And Equivalents | 4.1 M | 2.7 B |
| Cash Per Share | 0.32 X | 5.01 X |
| Total Debt | 5.07 B | 5.32 B |
| Debt To Equity | 3.15 % | 48.70 % |
| Current Ratio | 30.15 X | 2.16 X |
| Book Value Per Share | 140.04 X | 1.93 K |
| Cash Flow From Operations | 1.2 B | 971.22 M |
| Short Ratio | 9.70 X | 4.00 X |
| Earnings Per Share | 22.01 X | 3.12 X |
| Price To Earnings To Growth | 1.15 X | 4.89 X |
| Target Price | 491.0 | |
| Number Of Employees | 2.23 K | 18.84 K |
| Beta | 1.45 | -0.15 |
| Market Capitalization | 6.39 B | 19.03 B |
| Total Asset | 7.61 B | 29.47 B |
| Retained Earnings | 1.48 B | 9.33 B |
| Working Capital | 7.04 B | 1.48 B |
Note: Acquisition by Jonathan Lum of 2500 shares of Credit Acceptance at 333.94 subject to Rule 16b-3 [view details]
Credit Acceptance Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Credit . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Credit Acceptance Buy or Sell Advice
When is the right time to buy or sell Credit Acceptance? Buying financial instruments such as Credit Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Total Stockholder Equity | 1.8B | 1.6B | 1.8B | 1.8B | Total Assets | 7.1B | 6.9B | 7.6B | 8.0B |
Use Investing Ideas to Build Portfolios
In addition to having Credit Acceptance in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Companies involved in medical and pharmaceutical drug research, manufacturing, and delivery. The Drugs theme has 44 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Drugs Theme or any other thematic opportunities.
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Check out Credit Acceptance Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade Credit Stock refer to our How to Trade Credit Stock guide.Note that the Credit Acceptance information on this page should be used as a complementary analysis to other Credit Acceptance's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Complementary Tools for Credit Stock analysis
When running Credit Acceptance's price analysis, check to measure Credit Acceptance's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Credit Acceptance is operating at the current time. Most of Credit Acceptance's value examination focuses on studying past and present price action to predict the probability of Credit Acceptance's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Credit Acceptance's price. Additionally, you may evaluate how the addition of Credit Acceptance to your portfolios can decrease your overall portfolio volatility.
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Is Credit Acceptance's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Credit Acceptance. If investors know Credit will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Credit Acceptance listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.24) | Earnings Share 22.01 | Revenue Per Share 69.418 | Quarterly Revenue Growth (0.11) | Return On Assets 0.0394 |
The market value of Credit Acceptance is measured differently than its book value, which is the value of Credit that is recorded on the company's balance sheet. Investors also form their own opinion of Credit Acceptance's value that differs from its market value or its book value, called intrinsic value, which is Credit Acceptance's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Credit Acceptance's market value can be influenced by many factors that don't directly affect Credit Acceptance's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Credit Acceptance's value and its price as these two are different measures arrived at by different means. Investors typically determine if Credit Acceptance is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Credit Acceptance's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.