Ascent Group’s CACC Stake Cut Amid Mixed Results

Snack-Sized Version:

Ascent Group LLC significantly reduced its holdings in Credit Acceptance Corporation. The firm cut its position by 76.3% during the third quarter. This move comes as the company posted mixed financial results. For instance, Credit Acceptance reported Q3 earnings per share of $10.28, which beat estimates. However, its revenue of $405.1 million missed analyst expectations. As a result, Wall Street remains cautious on the stock. The consensus rating is currently a “Reduce.” In addition, TD Cowen recently cut its price target on the shares to $430 and reiterated a “sell” rating.

Read the Full Meal:

A recent SEC filing shows Ascent Group LLC cut its stake in Credit Acceptance. The investment firm sold 76.3% of its position in the third quarter. Consequently, it now holds just 1,946 shares valued at around $909,000. This major sale occurred as the company delivered mixed quarterly results. Specifically, Credit Acceptance beat earnings estimates with $10.28 per share. But, its revenue of $405.1 million fell short of forecasts. This performance has led to a cautious stance from analysts. For example, TD Cowen lowered its price target to $430. The firm also maintained its “sell” rating on the stock, signaling potential concerns for investors.

Ascent Group Slashes CACC Stake Amid Mixed Earnings

• Institutional Selling: Ascent Group LLC cut its position in the company by 76.3% during the third quarter.
• Q3 Revenue Miss: The company reported third-quarter revenue of $405.1 million, missing analyst expectations of $592.19 million.
• Analyst Caution: TD Cowen recently cut its price target to $430 and maintained a “sell” rating on the stock.
• Ownership Base: Institutional investors and hedge funds own 81.71% of the company’s stock.

Why this can matter for NASDAQ:CACC holders

• Investor Sentiment: A major investor significantly reducing its stake can signal a lack of confidence in future performance.
• Performance Metrics: The large revenue miss suggests potential challenges, although the company did beat earnings per share estimates.
• Wall Street View: The consensus ‘Reduce’ rating and specific price target cuts indicate analysts see limited upside for the stock.

For more details, see CACC SEC filings.

What to watch next

1. Next Earnings Report: Monitor the company’s fourth-quarter earnings release for updates on revenue trends and profitability.
2. SEC Filings: Watch for additional Form 13F filings to see if other institutional investors are changing their positions.
3. Analyst Revisions: Look for further analyst rating changes following the recent mixed financial results and institutional selling.

Mini FAQ

Why did Ascent Group LLC change its holdings in Credit Acceptance?
Ascent Group LLC reduced its position in Credit Acceptance by 76.3% in the third quarter. The firm sold 6,278 shares during the period.

How did Credit Acceptance perform in its most recent quarter?
The company reported Q3 EPS of $10.28, which beat estimates. However, its revenue of $405.1 million missed expectations.

What is the current analyst consensus on CACC stock?
The consensus rating for Credit Acceptance is ‘Reduce,’ with an average price target of $465. For example, TD Cowen set a ‘sell’ rating with a $430 target.

See Also

• Credit Acceptance Corporation News Hub
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