CACC

Recognition and Ranking: Credit Acceptance Corporation has been named one of the 100 Best Companies to Work For by Great Place To Work and Fortune magazine in 2025, achieving a ranking of #34, which is an improvement from last year.

Workplace Culture: The company emphasizes a positive work environment through remote work flexibility, employee feedback, and adherence to its PRIDE values, resulting in 93% employee satisfaction regarding their workplace experience.

Stock Performance: Credit Acceptance Corp's shares have surpassed the average analyst 12-month target price of $476.60, currently trading at $501.25, prompting analysts to consider either downgrading their valuation or raising their target prices based on the company's performance.

Analyst Insights: The average target price is derived from various analysts, with some suggesting lower targets and others higher, indicating a range of opinions on the stock's future value and encouraging investors to evaluate whether to hold or sell their shares.

Recognition and Awards: Credit Acceptance Corporation has been awarded the 2025 Top Workplaces USA award for the fifth consecutive year, achieving a #2 ranking in its employee size category, reflecting the company's strong culture and commitment to employee satisfaction.

Work Environment and Culture: The company emphasizes a remote work culture that supports work-life balance, with nearly 95% of employees working remotely, while also fostering connection through regular in-office days and meetings.

Stock Performance: Credit Acceptance Corp's shares have surpassed the average analyst target price of $476.60, currently trading at $492.39, prompting analysts to consider either downgrading their valuation or raising their target prices based on recent business developments.

Analyst Insights: The average target price is influenced by various analysts, with some suggesting lower targets (as low as $448) and others proposing higher ones (up to $500), indicating a diverse range of opinions on the stock's future performance.

Credit Acceptance Corporation's Bond Offering: The company announced the closing of a $500 million offering of 6.625% senior notes due 2030, with net proceeds expected to be approximately $492.9 million, which will be used for general corporate purposes and to fund the redemption of existing notes due 2026.

Forward-Looking Statements Disclaimer: The release contains forward-looking statements regarding future results and plans, cautioning that actual outcomes may differ due to various risks and uncertainties, as detailed in their SEC filings.

Credit Acceptance Corporation's Senior Notes Offering: The company has priced $500 million of its 6.625% senior notes due 2030, increasing the offering size from an initially announced $400 million, with expected closing on February 28, 2025.

Use of Proceeds and Forward-Looking Statements: Proceeds will be used to redeem existing senior notes due 2026 and for general corporate purposes, while cautioning that forward-looking statements may differ from actual results due to various risks and uncertainties.

Analyst Rating: Moshe Orenbuch from TD Cowen has maintained a Sell rating on Credit Acceptance (CACC) with a price target of $450, citing weaknesses in loan originations and declining net cash flow rates as key concerns.

Company Overview: Credit Acceptance Corp. provides dealer financing programs for automobile sales, allowing dealers to sell vehicles to consumers regardless of credit history, but faces challenges due to market competition and underperformance in recent vintages.

Quarterly Performance Overview: Credit Acceptance Corporation reported a mixed Q4 2024 performance with a record-high loan portfolio of $8.9 billion, improved collections of $1.3 billion, but a slowdown in growth reflected by a decrease in financed contracts and active dealers.

Management Outlook and Challenges: Management is focused on adapting to competitive pressures and improving forecasting models while addressing challenges related to older vintages and economic volatility, maintaining a cautiously optimistic tone despite analysts' concerns about growth and accuracy.

Major Earnings Reports: Key companies reporting earnings after the market closes on Thursday include Apple, Intel, Visa, Atlassian, and KLA Corporation.

Additional Earnings Releases: Other companies expected to release their earnings include AJG, APPF, ATGE, BKR, and many more, with a comprehensive earnings season calendar available on Seeking Alpha.

Stock Performance Overview: CACC's stock has a 52-week low of $409.22 and a high of $616.66, with the last trade recorded at $486.00.

Author's Perspective Disclaimer: The opinions expressed in the article are solely those of the author and do not necessarily represent Nasdaq, Inc.

Financing Announcement: Credit Acceptance Corporation has completed a $300 million asset-backed non-recourse secured financing, involving the conveyance of approximately $375.1 million in loans to a special purpose entity, with an expected average annualized cost of 6.3%.

Business Model Overview: The company provides innovative vehicle financing solutions to consumers with poor credit histories through a network of automobile dealers, helping them improve their credit scores and access traditional financing options.

Recognition for Workplace Excellence: Credit Acceptance Corporation has been named one of the Best Places to Work in IT by Computerworld for the 10th consecutive year, ranking #8 among midsize companies, and has received multiple accolades from Great Place to Work® and Fortune for its supportive work environment.

Innovative Financing Solutions: The company focuses on providing innovative financing options that enable consumers with poor credit histories to purchase vehicles, while also enhancing their credit scores through reporting to national credit agencies.

Warehouse Facility Increase: Credit Acceptance Corporation has increased its Warehouse Facility V from $200 million to $250 million and extended its revolving period and maturity dates, while also reducing the interest rate on borrowings.

Company Overview: Credit Acceptance provides financing solutions for vehicle ownership, enabling consumers with poor credit histories to purchase vehicles, thereby improving their credit scores and access to traditional financing options.

Recognition and Awards: Credit Acceptance Corporation has been named the #2 large company in Michigan by the Detroit Free Press Top Workplaces for the 13th consecutive year, also receiving the Managers Specialty Award for leadership support and employee growth.

Community Engagement: The company emphasizes its commitment to community involvement through various initiatives, including partnerships with local organizations and volunteer efforts, while fostering a supportive workplace culture that has earned multiple awards for being a great place to work.

Earnings Call Overview: Credit Acceptance Corporation held its Q3 2024 earnings conference call on October 31, 2024, featuring discussions led by CFO Jay Martin and CEO Ken Booth regarding the company's financial performance and forward-looking statements.

Performance Insights: The company reported a mixed quarter concerning collections and originations, highlighting ongoing risks and uncertainties that could impact future results.

Recognition for Workplace Culture: Credit Acceptance Corporation has been named one of the 2024 Best Workplaces for Women™ by Great Place to Work® and Fortune, ranking #29 on the Top 100 Large Company list, reflecting their commitment to empowering female employees in a diverse and inclusive work environment.

Company Overview and Impact: The company provides innovative financing solutions that enable consumers with poor credit histories to purchase vehicles, while also helping them improve their credit scores through reporting to national agencies.

Recognition for Remote Work: Credit Acceptance Corporation has been ranked #2 on the 2024 list of Top Workplaces for Remote Work, marking its first appearance on this list, which honors companies based on employee feedback regarding remote work environments.

Awards and Workplace Culture: The company has received multiple accolades for its workplace culture, including rankings in Great Place to Work® and Fortune's lists, highlighting its commitment to a strong remote work policy that fosters engagement and diversity among employees.

Recognition of Credit Acceptance: Credit Acceptance Corporation has been ranked #10 on Newsweek's annual America's Top 200 Most Loved Workplaces list, highlighting its commitment to employee loyalty and a positive workplace culture.

Company Values and Initiatives: The company emphasizes respect, caring, and appreciation for employees through flexible work environments, professional development programs, and recognition initiatives, contributing to its reputation as a Most Loved Workplace in various categories.

Financing Announcement: Credit Acceptance Corporation has completed a $600 million asset-backed non-recourse secured financing, involving the conveyance of approximately $750.2 million in loans to a special purpose entity that will issue three classes of notes with varying interest rates and average lives.

Purpose and Structure: The financing is expected to have an average annualized cost of about 5.2%, will revolve for 24 months before amortizing based on cash flows from the loans, and aims to repay outstanding debt while maintaining dealer relationships and rights.

CREDIT ACCEPTANCE CORP. Analysis: CREDIT ACCEPTANCE CORP. (CACC) is rated 48% using the Price/Sales Investor model by Kenneth Fisher, indicating moderate interest based on its fundamentals and valuation in the Consumer Financial Services industry.

About Kenneth Fisher: Kenneth Fisher, a prominent money manager and author, is known for popularizing the price/sales ratio as a stock evaluation tool and is the founder of Fisher Investments, located in a forest preserve to encourage independent thinking away from Wall Street.