Exploring Credit Acceptance Corporation (CACC) Investor Profile: Who’s Buying and Why?

Ever wondered who's investing in Credit Acceptance Corporation (CACC) and what's driving their decisions? With a market capitalization of $5.98 billion as of April 14, 2025, and $928.20 million in revenue for 2024, CACC is a significant player in the credit services industry. But who are the key shareholders, and what makes them bet on this company? Are institutional investors, like Prescott General Partners LLC and Cerity Partners LLC, the primary drivers, holding 65.40% of the shares, or is it the insiders with an impressive 83.47% stake? Understanding the investor profile and their motivations can provide valuable insights into the company's stability and future prospects. Read on to explore the dynamics of CACC's investor landscape and uncover the reasons behind their investment choices.

Credit Acceptance Corporation (CACC) Who Invests in Credit Acceptance Corporation (CACC) and Why?

Understanding the investor profile of Credit Acceptance Corporation (CACC) involves examining the diverse range of entities and individuals who hold its stock, and what motivates their investment decisions. These investors vary from retail investors to large institutional holders, each with their unique strategies and expectations.

Key Investor Types:

The investor base of Credit Acceptance Corporation (CACC) can be categorized into several key types:

• Retail Investors: These are individual investors who buy shares of Credit Acceptance Corporation (CACC) for their personal accounts. Their investment amounts can vary widely, and they may be motivated by factors such as long-term growth prospects or perceived value.
• Institutional Investors: These include entities such as mutual funds, pension funds, insurance companies, and hedge funds. Institutional investors typically manage large sums of money and can significantly influence a stock's price and stability.
• Mutual Funds: These funds pool money from many investors to purchase a diversified portfolio of stocks. They often invest in Credit Acceptance Corporation (CACC) as part of broader financial sector or growth-oriented strategies.
• Hedge Funds: These are investment partnerships that use more aggressive strategies, such as leveraging or short-selling, to maximize returns. Their investment in Credit Acceptance Corporation (CACC) might be driven by specific market opportunities or tactical considerations.

Investment Motivations:

Several factors might attract investors to Credit Acceptance Corporation (CACC):

• Growth Prospects: Investors may be drawn to Credit Acceptance Corporation (CACC)'s potential for growth within the auto finance industry, particularly its focus on the subprime market. The company's ability to increase its loan portfolio and net income can be a significant motivator.
• Market Position: Credit Acceptance Corporation (CACC)'s established position and expertise in the subprime auto lending market can be seen as a competitive advantage. This market position may provide a degree of stability and predictability in its financial performance.

Investment Strategies:

The strategies employed by investors in Credit Acceptance Corporation (CACC) can vary depending on their investment goals and risk tolerance:

• Long-Term Holding: Some investors may adopt a buy-and-hold strategy, maintaining their positions in Credit Acceptance Corporation (CACC) for extended periods to benefit from the company's long-term growth and potential capital appreciation.
• Short-Term Trading: Other investors, particularly hedge funds and day traders, may engage in short-term trading strategies to capitalize on price fluctuations in Credit Acceptance Corporation (CACC)'s stock.
• Value Investing: Value investors may be attracted to Credit Acceptance Corporation (CACC) if they believe the stock is undervalued by the market. They assess the company's intrinsic value based on its assets, earnings, and future growth prospects.

Understanding the composition and motivations of Credit Acceptance Corporation (CACC)'s investor base provides valuable insights into market sentiment and potential future stock performance. Monitoring changes in investor behavior can offer clues about shifts in market perception and the company's financial health.

For more information on Credit Acceptance Corporation (CACC), you might find this resource helpful: Credit Acceptance Corporation (CACC): History, Ownership, Mission, How It Works & Makes Money

Credit Acceptance Corporation (CACC) Institutional Ownership and Major Shareholders of Credit Acceptance Corporation (CACC)

Institutional ownership in Credit Acceptance Corporation (CACC) reflects the extent to which large financial organizations like mutual funds, pension funds, and hedge funds hold the company's shares. Analyzing this ownership can provide insights into market sentiment and potential stock performance.

Here's a breakdown of CACC's institutional ownership profile:

• Top Institutional Investors: As of the latest filings, the top institutional investors in Credit Acceptance Corporation (CACC) include:
  • Vanguard Group Inc: Holding 2,204,798 shares, representing about 15.24% of the company.
  • BlackRock Inc.: With 1,846,273 shares, holding approximately 12.77%.
  • Dimensional Fund Advisors LP: Owning 1,024,384 shares, which accounts for roughly 7.09%.
  • Capital Research & Management Co.: Holding 781,658 shares, representing around 5.40%.
  • Renaissance Technologies LLC: With 398,992 shares, accounting for about 2.76%.

These major institutional holders can significantly influence CACC's stock price due to the large volumes of shares they trade.

Recent changes in institutional ownership can signal shifts in investor confidence:

• Increased Stakes: Some institutions have increased their positions, indicating a bullish outlook on Credit Acceptance Corporation (CACC). For instance, Vanguard Group Inc increased its stake by 3.52% in the recent quarter, purchasing 74,981 additional shares.
• Decreased Stakes: Conversely, other institutions have reduced their holdings, which might suggest concerns about the company's future performance. For example, Geode Capital Management LLC decreased its stake by 2.81% in the recent quarter, selling 13,080 shares.

These changes can be driven by various factors, including the company's financial performance, broader economic conditions, and the investment strategies of the institutions themselves.

Institutional investors play a crucial role in Credit Acceptance Corporation (CACC)'s stock dynamics and corporate strategy:

• Stock Price Influence: Large institutional trades can lead to significant price movements. Positive news coupled with increased institutional buying can drive the stock price up, while negative news and selling pressure from these investors can depress it.
• Strategy and Governance: Institutional investors often engage with company management on issues such as corporate governance, executive compensation, and strategic direction. Their influence can push companies to adopt shareholder-friendly policies and improve operational efficiency.
• Stability: High institutional ownership can sometimes provide stability to the stock, as these investors tend to have a long-term investment horizon. However, it can also lead to increased volatility if these institutions decide to change their positions rapidly.

Understanding the composition and behavior of Credit Acceptance Corporation (CACC)'s institutional ownership is essential for investors looking to gain a comprehensive view of the company's market dynamics and potential future performance.

Here is a detailed table of the major institutional investors in Credit Acceptance Corporation (CACC):

These figures highlight the significant influence these institutions have on Credit Acceptance Corporation (CACC).

For further insights into Credit Acceptance Corporation (CACC)'s financial health, consider exploring: Breaking Down Credit Acceptance Corporation (CACC) Financial Health: Key Insights for Investors

Credit Acceptance Corporation (CACC) Key Investors and Their Impact on [Company Name]

Institutional investors hold a significant portion of Credit Acceptance Corporation (CACC). As of December 31, 2024, institutional investors owned approximately 54% of the company. This substantial ownership indicates that the company's stock price may be sensitive to the trading actions of these institutions. The top 8 shareholders own 51% of the company.

Here's a breakdown of some notable investors in Credit Acceptance Corporation (CACC):

• Prescott General Partners LLC: Held 1.55 million shares, representing 12.90% of the company, with a value of $796,597,387 as of December 31, 2024.
• Cerity Partners LLC: Held 796,37k shares, accounting for 6.62% of the company, valued at $408,642,881 as of December 31, 2024.
• Ruane, Cunniff & Goldfarb L.P.: Held 655.27k shares, representing 5.45% of the company, with a value of $336,239,211 as of December 31, 2024.
• Vanguard Group Inc: Held 486.83k shares, accounting for 4.05% of the company, valued at $249,806,054 as of December 31, 2024.
• Gobi Capital LLC: Held 405.17k shares, representing 3.37% of the company, with a value of $207,903,857 as of December 31, 2024.
• Beck, Mack & Oliver LLC: Held 391.24k shares, accounting for 3.25% of the company, valued at $200,755,956 as of December 31, 2024.
• Blackrock Inc.: Held 309.2k shares, representing 2.57% of the company, with a value of $158,658,258 as of December 31, 2024.
• Wellington Management Group, LLP: Held 300.05k shares, accounting for 2.49% of the company, valued at $153,963,118 as of December 31, 2024.

The influence of these investors on Credit Acceptance Corporation (CACC) can be significant. Institutional investors, with their substantial resources and liquidity, can heavily influence a company's stock price. Their investment decisions often reflect confidence in the company's future. If a large institutional investor sells out a significant portion of its holdings, it could lead to a considerable drop in the share price.

Recent moves by some of these major institutional holders include:

• Wellington Management Group LLP decreased their holdings by 242,624 shares, a 44.709% change, bringing their total shares to 300,047 as of December 31, 2024.
• Ruane, Cunniff & Goldfarb L.P. reduced their position by 26,333 shares, a -3.863% change, holding 655,271 shares as of December 31, 2024.
• Smead Capital Management, Inc. decreased their holdings by 4,921 shares, a -2.368% change, with a total of 202,907 shares as of December 31, 2024.
• Vanguard Group Inc. increased its holdings by 5,134 shares to reach 486,828 shares as of December 31, 2024.
• Blackrock Inc. increased their holdings by 18,727 shares to reach 309,197 shares as of December 31, 2024.
• Gobi Capital LLC increased their holdings by 21,846 shares to reach 405,168 shares as of December 31, 2024.
• Beck Mack & Oliver LLC increased their holdings by 6,214 shares to reach 391,238 shares as of December 31, 2024.

Additionally, it's worth noting the presence and influence of major individual shareholders. As of December 2024, Donald A. Foss is the largest individual shareholder, owning 12.98 million shares, representing 107.86% of the company. These shares are valued at approximately $5.99 billion.

For more information on Credit Acceptance Corporation (CACC), you can visit Credit Acceptance Corporation (CACC): History, Ownership, Mission, How It Works & Makes Money.

Credit Acceptance Corporation (CACC) Market Impact and Investor Sentiment

Understanding investor sentiment and market reactions is crucial for evaluating the potential of Credit Acceptance Corporation (CACC). This analysis encompasses the perspectives of major shareholders, recent market behaviors, and insights from financial analysts to provide a comprehensive view of CACC's market dynamics.

Investor Sentiment:

Institutional investors hold a significant portion of Credit Acceptance Corporation, with approximately 54% of the company's shares. This substantial institutional ownership suggests that the stock price is highly sensitive to the trading actions of these entities. A large institutional stake often indicates confidence in the company's future, though it's important to remember that institutional investors can sometimes make incorrect decisions. The general public, consisting of individual investors, holds about 10% of the company's stake. While this may not be enough to sway policy decisions, collective actions can still influence company policies [1].

Insiders also hold a noteworthy proportion of Credit Acceptance Corporation. Recent data indicates that insiders possess a meaningful stake worth $757 million in this $5.2 billion business. This significant investment by insiders is generally viewed positively [1].

Key shareholders include:

• Donald A. Foss Trust: Holds 11% of shares outstanding [1].
• Marital Trust U/A Donald A. Foss Trust: Owns 9.5% of the common stock [1].
• Cerity Partners LLC: Holds approximately 6.6% of the company stock [1].

Recent Market Reactions:

Credit Acceptance Corporation's stock has experienced some volatility. As of April 10, 2025, the stock price was $472.19, a -2.07% decrease in the past 24 hours [4]. Recent performance includes:

• A -3.56% fall compared to the previous week [4].
• A -2.76% fall over the last month [4].
• A -12.58% decrease over the last year [4].

However, on April 10, 2025, CACC shares closed 7% higher at $501.25, driven by a broad market jump following President Donald Trump's announcement of a 90-day tariff pause for non-retaliating nations [18].

Analyst Perspectives:

The consensus rating for Credit Acceptance Corp. is 'Moderate Sell.' The average price target, based on two Wall Street analysts, is $460.00, which represents a -7.50% decrease from the recent price of $497.31. The price targets range from a high of $500.00 to a low of $420.00 [3].

Zacks Investment Research has a current rating of Zacks Rank 2 for Credit Acceptance Corporation, anticipating above-average returns relative to the market in the next few months [13].

Financial analysts have provided various insights on Credit Acceptance Corporation:

• One analyst has a target as high as $500.00, while another has a lower target of $448.00 [8].
• The consensus EPS estimate for the upcoming quarter is $10.31 per share, which represents a year-over-year increase of +103%. Revenues are expected to be $568.15 million, up 11.8% from the year-ago quarter [18].

Here is a summary of analyst ratings for Credit Acceptance Corp as of April 10, 2025 [8]:

The average rating is on a scale of 1 to 5, where 1 is Strong Buy and 5 is Strong Sell [8].

For further insights into Credit Acceptance Corporation's financial health, consider exploring this resource: Breaking Down Credit Acceptance Corporation (CACC) Financial Health: Key Insights for Investors.