Janney upgrades Credit Acceptance to Neutral on Q2 rebound » 09:3207/3107/31/20
Janney Montgomery Scott…
Janney Montgomery Scott analyst John Rowan upgraded Credit Acceptance to Neutral from Sell with a $394 fair value estimate following the company's Q2 results. The company's model "showed some strong resiliency in the current environment," Rowan tells investors in a research note. Credit Acceptance did not violate its net income covenant on the corporate revolver, nor did it have to contribute additional collateral to any asset-backed security facility, adds the analyst. Rowan cites the "rebound" in fundamentals in Q2 for the upgrade.
Credit Acceptance upgraded to Neutral from Sell at Janney Montgomery Scott » 07:1407/3107/31/20
Janney Montgomery Scott…
Janney Montgomery Scott analyst John Rowan upgraded Credit Acceptance to Neutral from Sell with a $394 price target.
Credit Acceptance reports Q2 EPS $8.63, consensus $4.84 » 16:0407/3007/30/20
Reports Q2 revenue…
Reports Q2 revenue $406.3M, consensus $384.63M.Adjusted net income, a non-GAAP financial measure, for the three months ended June 30, 2020 was $154.1 million, or $8.63 per diluted share, compared to $162.9 million, or $8.60 per diluted share, for the same period in 2019. For the six months ended June 30, 2020, adjusted net income was $329.8 million, or $18.29 per diluted share, compared to adjusted net income of $316.5 million, or $16.68 per diluted share, for the same period in 2019."The Financial Accounting Standards Board issued a new accounting standard (known as CECL) that changed how we account for our loans under GAAP effective January 1, 2020. The net loan income (finance charge revenue less provision for credit losses expense) that we recognize over the life of a loan equals the cash we collect from the underlying Consumer Loan less the cash we pay to the dealer. While the total amount of net loan income we will recognize over the life of the loan is not impacted by CECL, the timing of when we will recognize this income has changed significantly from our prior accounting method. We believe that recognizing net loan income on a level-yield basis over the life of the loan based on expected future net cash flows matches the economics of our business."
|Over a month ago|
Credit Acceptance announces change of location of Annual Meeting of Shareholders » 08:0907/0207/02/20
Credit Acceptance announced that, because of the continuing public health concerns relating to the COVID-19 pandemic, and in consideration of the health and well-being of shareholders and other meeting participants, the Company's annual meeting of shareholders to be held on Wednesday, July 15, 2020, at 8:00 a.m., Eastern time, will not be held at the Company's principal executive offices, but instead will be held solely by means of remote communication in a virtual meeting format by live audio webcast over the Internet. Shareholders will not be able to attend the Annual Meeting physically in person.
Citron cites Credit Acceptance in tweet about judgements against black borrowers » 10:3606/0306/03/20
Citron Research, which…
Citron Research, which has previously disclosed a short position in Credit Acceptance, tweeted "let's see if our politicians are all talk or if the awareness of the past week will finally force the change that is needed for economic and legal equality" along with a link to a tweet from "Subprime Avenger" that claims Credit Acceptance "obtained judgements against residents of mostly black neighborhoods at a rate 18 times higher than residents of mostly white neighborhoods." Reference Link
Stephens says Santander Consumer may benefit if Wells pulling back on auto loans » 07:0106/0306/03/20
SC, CACC, CRMT, WFC, ALLY
Stephens analyst Vincent…
Stephens analyst Vincent Caintic noted CNBC's report yesterday that Wells Fargo (WFC) confirmed that the company, which only makes auto loans through car dealerships, will no longer accept loan applications from most independent dealerships. He sees Santander Consumer (SC) as the auto lender that stands to benefit the most from the news. This may also be a "modest positive" for America's Car-Mart (CRMT) and Credit Acceptance (CACC) also competes in the lower-credit-tier, added Caintic. While Ally Financial (ALLY) has been growing in the independent space, independent dealers are still a "relatively small" part of its overall business, the analyst noted.
Credit Acceptance price target raised to $337 from $316 at BMO Capital » 08:0005/2905/29/20
BMO Capital analyst James…
BMO Capital analyst James Fotheringham raised the firm's price target on Credit Acceptance to $337 from $316 and keeps a Market Perform rating on the shares after its Q1 cost-driven earnings beat. The company's competitive trends are difficult to gauge as unit volumes fell by over 20% in March and April due to dealer closures before rebounding over 20% so far in May, the analyst tells investors in a research note. Fotheringham is also raising his estimates on FY20 EPS to $39.15 from $35.60 due to Credit Acceptance's higher expected finance revenues.
Beneficial owner of Credit Acceptance Donald Foss sold almost $3M in shares » 16:5505/2805/28/20
Beneficial owner of…
Beneficial owner of Credit Acceptance Donald Foss disclosed that he had sold 8,066 shares of company stock at an average price of $353.94 on May 26. The total transaction value of the sale was $2,854,907.
Credit Acceptance reports Q1 EPS $9.66, consensus $3.68 » 16:1705/2705/27/20
Reports Q1 revenue…
Reports Q1 revenue $389.1M, consensus $382.22M. In March 2020, COVID-19 began to spread rapidly across the United States. In an effort to slow the spread of the virus, authorities implemented various measures, including travel bans, stay-at-home orders and shutdowns of non-essential businesses. These measures have caused a significant decline in economic activity and a dramatic increase in the number of individuals who are no longer employed. As detailed below, starting in mid-March, we experienced a substantial reduction in demand for our product and a significant decline in cash flows from our loan portfolio that lasted through mid-April, after which collections and new loan volumes improved significantly. As the virus is not yet contained, the ultimate impact of the pandemic on our business is not yet known. The impact will depend on future developments, including, but not limited to, the duration and spread of the pandemic, its severity, the actions to contain the disease or mitigate its impact, and the duration, timing and severity of the impact on consumer behavior and economic activity.
|Over a quarter ago|
Credit Acceptance lawsuit filings 'desperate and despicable,' Citron says » 12:1804/2804/28/20
Citron Research said via…
Citron Research said via Twitter, "$CACC cannot file a Q but they CAN file hundreds of garnishments and lawsuits in the past 4 weeks in whatever courts are still open in this country. Desperate and despicable. No a stock recco as much as commentary."