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

You're trying to understand why Credit Acceptance Corporation (CACC) remains a formidable, if controversial, player in subprime auto-lending, right? The Q3 2025 numbers defintely raised eyebrows: the company delivered an Adjusted EPS of $10.28 per diluted share, a solid beat against the $9.61 consensus, even while their average loan portfolio swelled to $8.0 billion. But here's the real story: the investor profile is a tightly-wound spring, with insiders holding a massive stake-around 67.02% of shares outstanding-which dramatically limits the free float and creates a unique dynamic against the 8,194,349 shares held by institutional owners like BlackRock, Inc. This high insider control, coupled with the company repurchasing $107.4 million of its own stock in Q3 alone, suggests management sees deep value, but with analysts setting an average price target of just $465.00, are those institutional buyers chasing a scarcity premium, or are they genuinely betting on the strength of the 2025 loan vintage exceeding expectations despite broader market weakness?

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

You want to know who is buying Credit Acceptance Corporation (CACC) and why, and the answer is simple: it's a mix of long-term value funds and insiders who are betting on the resilience of a unique, high-margin business model, especially one that aggressively shrinks its share count. The core investment thesis is not about rapid market share growth, but about maximizing per-share earnings through capital return and operational efficiency in a tough subprime auto market.

The ownership structure for Credit Acceptance Corporation is defintely concentrated, which is a key factor in its stock performance. Insiders and large institutional investors hold the majority of the stock, creating a tight float (the number of shares available for public trading) that can amplify price movements.

• Institutional Investors: These are the mutual funds, pension funds, and asset managers like Vanguard Group Inc and BlackRock, Inc. They collectively hold a significant portion, ranging from 38.57% to over 55.44% of the outstanding shares.
• Insiders and Affiliates: This group, which includes executives, directors, and large affiliated shareholders like Prescott General Partners LLC, holds an unusually high percentage, around 21.26% of the stock. This level of insider ownership signals strong management confidence, but also means fewer shares trade publicly.
• Retail Investors: Individual investors hold an estimated 23.30% of the company's stock. They often follow the lead of the large institutional and insider activity.

The Institutional and Insider Play: Value and Capital Return

The biggest players are drawn to Credit Acceptance Corporation for two main reasons: its exceptional gross margin and its consistent, aggressive strategy of returning capital to shareholders. The company's Q2 2025 results showed an impressive gross margin of 93.85%, which is a sign of its pricing power and unique financing model in the non-prime auto space.

Since Credit Acceptance Corporation does not pay a dividend, the primary mechanism for returning cash to shareholders is the share repurchase program. This is a huge draw for value investors. In Q3 2025 alone, the company spent $107.4 million to repurchase approximately 230,000 shares, continuing a trend that saw over 1.83 million shares bought back for US$921.17 million since 2023. Here's the quick math: fewer shares outstanding means the company's net income is divided among a smaller pool, directly boosting the Earnings Per Share (EPS). This focus on EPS accretion is the central pillar of the value thesis.

The investment narrative is simple: the business model is resilient. CEO Ken Booth noted that the model is designed to produce acceptable returns even when loan performance is significantly worse than forecasted, a critical point for a subprime lender in a challenging credit environment. [cite: 5 in Search 1]

Investment Strategies: Value, Long-Term Holding, and Technology Bets

The typical investment strategy for Credit Acceptance Corporation is a long-term, value-oriented approach, often complemented by a focus on the company's technology improvements. You see this reflected in the holdings of major asset managers. The Price-to-Earnings (P/E) ratio of around 10.7x is significantly below the peer average of 36.7x, suggesting a potential for hidden value that large funds are willing to wait for.

• Long-Term Value Investing: Investors like Ruane, Cunniff & Goldfarb L.P. and Sequoia Fund Inc. (a known long-term value fund) hold large positions, signaling a belief that the market is undervaluing the company's long-term cash flow generating ability. They are betting that the stock's intrinsic value is closer to the analyst consensus average price target of $465.00. [cite: 1, 7 in Search 1]
• Short-Term Trading/Momentum: Despite the long-term focus, short-term traders react quickly to earnings. For example, the stock rose 3.3% after the Q2 2025 earnings release, primarily on the strength of the loan portfolio growth and strategic direction, even with an EPS miss. This creates short-term volatility.
• Technology and Efficiency Bet: A growing number of investors are focused on the company's investments in technology modernization, including a revamped loan origination system. They see this as a key lever to improve operating efficiency and enhance risk assessment, which should stabilize net margins and earnings in future loan vintages, even as recent 2022-2024 vintages have underperformed expectations.

What this estimate hides is the persistent credit risk from underperforming loan vintages from 2022 through 2024, which is a key risk factor that analysts are monitoring closely. The company's future performance hinges on the success of its new scorecard adjustments and technology to improve collection trends. If you want to understand the foundational principles driving this unique business, you should read the Mission Statement, Vision, & Core Values of Credit Acceptance Corporation (CACC).

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

You're looking at Credit Acceptance Corporation (CACC), and the first thing to understand is that institutional money drives this stock. As of the most recent filings, institutional investors hold the vast majority of the company, with long-only institutional shares representing about 73.80% of the shares outstanding. That's a massive concentration, and it means the decisions of a few dozen large funds can significantly move the stock price.

The total value of these long institutional holdings sits around $4.05 billion, based on reported Q3 2025 data. This level of ownership means you're investing alongside some of the biggest names in finance, including the passive giants and active managers who specialize in the subprime auto lending space. The ownership structure here is defintely a key risk factor to monitor.

Top Institutional Investors: Who Holds the Keys?

When you break down the institutional ownership of Credit Acceptance Corporation, you see a mix of dedicated value funds and massive index-tracking firms. The top holders are not just passive players; some are active managers who have a history of engaging with company management. Prescott General Partners LLC, for example, is the largest institutional shareholder, holding approximately 1,478,388 shares, which translates to a significant stake of about 13.40% of the company.

Other major players include the behemoths of asset management. Here's a snapshot of the largest institutional stakes reported recently:

• Prescott General Partners LLC: Approximately 1,478,388 shares, or 13.40%.
• Cerity Partners LLC: Holding about 796,563 shares, or 7.22%.
• Ruane, Cunniff & Goldfarb L.P.: With around 584,025 shares, representing 5.29%.
• The Vanguard Group, Inc.: A passive giant, owning roughly 447,556 shares, or 4.06%.
• BlackRock, Inc.: Another index fund leader, holding about 234,498 shares, or 2.13%.

You'll notice that Prescott General Partners LLC holds a particularly dominant position. This is a classic example where a single, active fund can wield disproportionate influence on the board and strategic direction, a factor that is often overlooked in a simple ownership percentage calculation.

Recent Shifts: Are Institutions Buying or Selling?

The near-term trend in institutional ownership for Credit Acceptance Corporation is mixed, reflecting the challenging environment in the auto finance sector. While the total number of institutional owners actually increased by a modest 1.98% in the most recent quarter, the overall institutional shares (Long) decreased by 4.52% over the same period. This suggests that while more smaller institutions are initiating positions, the larger players are net sellers, reducing their exposure.

To be fair, the picture isn't uniform. For example, during the second quarter of 2025, Creative Planning increased its position by a substantial 35.6%, and SG Americas Securities LLC boosted its holdings by 64.0%. But still, the net effect was a reduction in total shares held, driven by other funds trimming their stakes, such as Alfreton Capital LLP decreasing its position by 1.7% in Q2 2025. This divergence shows a split in conviction: some see a buying opportunity, but more capital is flowing out than in.

Here's the quick math: more funds are watching CACC, but the average position size is shrinking.

Impact on Stock Price and Corporate Strategy

The heavy institutional ownership plays a crucial role in both Credit Acceptance Corporation's stock price volatility and its long-term strategy. When institutional investors own over 70% of the stock, their collective buying or selling can create sharp price movements, especially around earnings reports or regulatory news.

More importantly, these large shareholders influence corporate strategy. For example, the company's Q3 2025 results highlighted a repurchase of approximately 230,000 shares for $107.4 million. Aggressive share buybacks like this are a key capital allocation decision, often driven by management's desire to return capital to shareholders-a priority for many institutional investors.

The company's focus on maintaining portfolio quality and adapting to a competitive subprime auto market is a direct response to investor concerns. Management has been clear that they would rather do less volume at solid margins than chase volume, a disciplined approach that appeases institutional investors worried about credit risk, especially given the underperformance of loan vintages from 2022 to 2024. This strategic focus on credit quality over unit growth is a clear reflection of institutional pressure to manage risk in a challenging economic environment. For a deeper dive into how the company manages its core business, you can review Credit Acceptance Corporation (CACC): History, Ownership, Mission, How It Works & Makes Money.

The institutional view is simple: protect the balance sheet and deliver consistent adjusted earnings per share (EPS), which hit $10.28 in Q3 2025.

Key Investors and Their Impact on Credit Acceptance Corporation (CACC)

You need to understand who holds the power in Credit Acceptance Corporation (CACC) to anticipate stock movements and strategic shifts. The story here is a unique blend of high institutional conviction and formidable insider control, which makes for a fascinating, if sometimes volatile, dynamic.

Overall institutional ownership currently sits at a high level, around 81.7% of the stock, with a total of 8,194,349 shares held by over 500 funds and institutions. This means the bulk of the shares are in professional hands, but the true steering wheel is often held by a few key players. One clean one-liner: Institutional investors love the economic profit model.

The Dominance of Insider and Dedicated Capital

The most defining characteristic of Credit Acceptance Corporation's investor profile is the massive concentration of shares held by insiders and a few dedicated investment firms. This isn't your typical widely-held stock; the Foss family and related entities, as well as a few core funds, hold a controlling interest.

The largest individual shareholder remains Donald A. Foss, whose holdings and related trusts represent a significant portion of the company, giving insiders a collective ownership stake as high as 67.02% of shares outstanding. This level of insider control means that management decisions-from capital allocation to long-term strategy-are defintely insulated from the typical pressures of most public company shareholders.

Among the top institutional holders, you'll find names like Prescott General Partners LLC, which is also considered an insider due to its large stake, alongside major players like Vanguard Group Inc and BlackRock, Inc. Prescott General Partners LLC, for instance, is one of the largest holders with a significant share count.

• Prescott General Partners LLC: A top holder, often viewed as a dedicated, long-term partner.
• BlackRock, Inc.: A key index and passive fund holder, reflecting the stock's inclusion in major benchmarks.
• Cerity Partners LLC: Another large institutional holder, demonstrating conviction in the company's subprime lending model.

Investor Influence: Stability and Buybacks

The high insider and dedicated institutional ownership creates a stability that can buffer the stock from transient market noise. However, it also means that major strategic shifts are less likely to be driven by external activist campaigns. The main way investors see their influence exerted is through capital return policies.

The company's consistent share repurchase program is a clear action that benefits this concentrated shareholder base. In the first three quarters of 2025 alone, Credit Acceptance Corporation executed substantial buybacks:

Here's the quick math: reducing the share count by repurchasing stock directly boosts earnings per share (EPS) for the remaining shareholders. This is a powerful, shareholder-friendly move, especially when the company is reporting strong financial metrics like Q3 2025 adjusted net income per diluted share of $10.28.

Recent Notable Moves and Market Signals

The most recent activity points to a mixed sentiment among different investor types, which you need to weigh carefully. While the company is buying back stock, some key investors are adjusting their positions.

In mid-November 2025, Alfreton Capital LLP, a significant institutional holder, trimmed its position by 1.7%, though the holding remains a large part of their fund, valued at about $95.2 million. This is a small reduction, but it signals some profit-taking or a slight de-risking. Conversely, smaller funds like Creative Planning and SG Americas Securities LLC increased their stakes in Q2 2025.

On the insider front, the trend is one of selling, which is common for highly-compensated executives and major shareholders managing their wealth. Over the 90 days leading up to November 2025, insiders were net sellers of 13,697 shares worth approximately $6.98 million. A notable example was a major shareholder, Jill Foss Watson, selling 20,000 shares for over $10.7 million in July 2025. This insider selling, combined with the company's buybacks, suggests a continuous cycle of capital management at the very top.

For a deeper dive into the raw numbers and the implications of the company's capital strategy, you should read Breaking Down Credit Acceptance Corporation (CACC) Financial Health: Key Insights for Investors. Anyway, the key action item for you is to monitor the next 13F filings for any major shifts by the top institutional holders, as their movements will likely have the biggest impact on the stock price.

Market Impact and Investor Sentiment

You're looking at Credit Acceptance Corporation (CACC) and seeing a disconnect: high institutional ownership but a cautious market rating. The current investor sentiment for CACC is best described as cautious neutrality, leaning toward negative, driven by significant insider selling despite a strong institutional base.

As of November 2025, institutional investors own a substantial portion of the company-around 67.38% of the shares outstanding, which is a huge vote of confidence from the big money managers. However, the insider sentiment is defintely negative. Key executives and large shareholders have been net sellers, with insiders selling a total of $47.1 million in high-impact open-market transactions over the last year. That's a lot of stock moving out the door. When the people running the company are selling, it raises a red flag for outside investors, even if the fundamentals look okay.

• Institutional ownership is high: 67.38% of the float.
• Insider sentiment is negative due to heavy selling.
• The stock is considered high-risk due to volatility.

Recent Market Reactions to Financial Performance

The stock market's response to Credit Acceptance Corporation's 2025 earnings has been mixed, reflecting the company's uneven performance and the high-risk nature of subprime auto lending. The stock price, which traded around $441.04 on November 14, 2025, is near the lower end of its 52-week range of $401.91 to $560.00.

The Q3 2025 earnings report saw a slight relief rally because the company's Earnings Per Share (EPS) of $10.28 beat the consensus estimate of $9.61. But, the Q2 2025 results were a different story. The adjusted EPS of $8.56 missed the analyst consensus of $9.87, which caused the stock to drop by 2.83% in aftermarket trading. This tells you that while the market appreciates an EPS beat, it's quick to punish any sign of weakness, especially in the core profitability metrics. The company's record high loan portfolio of $9.1 billion in Q2 2025 is a positive sign of growth, but it's overshadowed by investor concerns about loan performance and market share decline.

Here's a quick look at the 2025 fiscal year financial highlights:

Analyst Perspectives and the Impact of Key Investors

Wall Street analysts are currently leaning bearish on Credit Acceptance Corporation. The consensus rating from the covering analysts is a Sell or Moderate Sell. This is a strong signal, and it's largely driven by two things: credit quality risk and the high valuation relative to peers.

The average analyst price target sits between $419.40 and $465.00, which is very close to the current trading price. For instance, TD Cowen reiterated a Sell rating with a $430.00 price target on October 31, 2025. The core issue analysts see is the modest decline in forecasted collection rates, which decreased projected net cash flows from the loan portfolio by $20.9 million in Q1 2025 alone. That's a direct hit to future expected profits.

The presence of major institutional holders, like Prescott General Partners LLC and BlackRock, Inc., does provide a floor for the stock, but it doesn't insulate it from credit cycle risks. These large, sophisticated investors are likely buying for the long-term value proposition-the company's strong cash flow generation and its specialized, profitable niche in the market. Still, their buying is countered by the very real risk of regulatory scrutiny and a tight credit environment, which is why the overall analyst view is so cautious. You can find more detail on the company's long-term strategy in their Mission Statement, Vision, & Core Values of Credit Acceptance Corporation (CACC).

The estimated full-year 2025 revenue is approximately $2.389 billion, with an estimated full-year EPS of $38.48. This projected growth is what keeps the institutional money interested, but the consensus Sell rating suggests that the near-term risks-like the lower-than-expected loan performance-outweigh the growth potential for now. Your action item here is to monitor the next quarterly report for any stabilization in collection rates.