Credit Acceptance Corp (CACC) Stock AnalysisCACCCredit Acceptance Corp

Credit Acceptance Corporation is engaged in providing financing solutions that enable automobile dealers to sell vehicles to consumers. The Company's financing programs are offered through a nationwide network of automobile dealers. Its loan portfolio consists of two portfolio segments: dealer loans and purchased loans. The Company offers two financing programs, including the Portfolio Program and the Purchase Program. Under the Portfolio Program, the Company advances money to dealers in exchange for the right to service the underlying consumer loans. Under the Purchase Program, the Company buys the consumer loans from the dealers and keeps all amounts collected from the consumer. Its target market consists of approximately 60,000 independent and franchised automobile dealers in the United States. The Company has market area managers located throughout the United States that market its programs to dealers, enroll new dealers, and support active dealers. It operates in the Financials sector (PERSONAL CREDIT INSTITUTIONS industry).

Credit Acceptance Corp (CACC) is currently priced at $540.98, which is below the analyst price target of $590, suggesting potential upside. However, the RSI is at 47.95, indicating a neutral momentum, and the stock has experienced a 6.45% decline over the past 20 days, which raises caution. The forward P/E ratio is 10.28, suggesting it is relatively undervalued compared to its earnings potential, but the company has only seen 1.7% annual revenue growth over the past five years, which is concerning for long-term growth.

10 analysts cover CACC: 0 rate it Buy, 5 Hold and 5 Sell. The average price target is 470.00.