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Credit Acceptance Corporation (CACC) Stock Analysis

SellVALUE-TRAP 2/5Moderate Confidence

Financial Services · Credit Services

Earnings in 5 days (2026-05-05). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Sell if holding. Analyst target reached at $500.39 — A.R:R is negative (-1.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 4.2): -1.5.

Credit Acceptance Corporation provides auto financing through nationwide automobile dealers, enabling vehicle sales to consumers regardless of credit history; approximately 79.5% of loans are made to borrowers with FICO scores below 650. Revenue is generated through interest... Read more

$500.39+6.2% A.UpsideScore 5.9/10#14 of 28 Credit Services
Stop $466.20Target $532.14(resistance)A.R:R -1.2:1
Analyst target$481.67-3.7%3 analysts
$532.14our TP
$500.39price
$481.67mean
$450
$540

Sell if holding. Analyst target reached at $500.39 — A.R:R is negative (-1.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 4.2): -1.5. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.9/10, moderate confidence.

Passes 5/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 5d<=7d. Suitability: aggressive.

Thesis

Rewards
High-quality business
Attractive valuation
Risks
Analyst target reached - limited upside remaining
Leverage penalty (D/E 4.2): -1.5
Earnings in 5 days (event risk)

Key Metrics

P/E (TTM)13.8
P/E (Fwd)9.7
Mkt Cap$5.2B
EV/EBITDA
Profit Mgn34.2%
ROE25.9%
Rev Growth1.6%
Beta1.32
DividendNone
Rating analysts8

Quality Signals

Piotroski F8/9

Options Flow

P/C1.91bearish
IV79%elevated
Max Pain$480-4.1% vs spot

Concentration Risks(10-K Item 1A)

  • LOWGeographicfive largest states29%
    10-K Item 1A: 'our five largest states ... contained 29.2% of Dealers'

Material Events(8-K, last 90d)

  • 2026-01-26Item 5.02LOW
    Arthur L. Smith (Chief Analytics Officer) and Daniel A. Ulatowski (Chief Sales Officer) both retiring Feb 1, 2026. Each will serve as non-employee consulting advisors until July 31, 2026. No disagreement cited.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

10 dimensions · all in-band

GatesA.R:R -1.2=NEGATIVEEARNINGS PROXIMITY 5d<=7dMomentum 4.9<5.5 (soft — BUY_NOW allowed but watch)Momentum 4.9>=4.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARSuitability: Aggressive
RSI
63 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $405.38Resistance $543.00

Price Targets

$466
$532
A.Upside+6.3%
A.R:R-1.2:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeCautious

Risk Alerts

! Target reached (-18.3% upside)
! Negative risk/reward — downside exceeds upside
! EARNINGS_PROXIMITY:5d<=7d

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-05-05 (5d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is CACC stock a buy right now?

Sell if holding. Analyst target reached at $500.39 — A.R:R is negative (-1.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 4.2): -1.5. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $466.20. Score 5.9/10, moderate confidence.

What is the CACC stock price target?

Take-profit target: $532.14 (+6.2% upside). Prior stop was $466.20. Stop-loss: $466.20.

What are the risks of investing in CACC?

Analyst target reached - limited upside remaining; Leverage penalty (D/E 4.2): -1.5; Earnings in 5 days (event risk).

Is CACC overvalued or undervalued?

Credit Acceptance Corporation trades at a P/E of 13.8 (forward 9.7). TrendMatrix value score: 7.6/10. Verdict: Sell.

What do analysts say about CACC?

8 analysts cover CACC with a consensus score of 2.4/5. Average price target: $482.

What does Credit Acceptance Corporation do?Credit Acceptance Corporation provides auto financing through nationwide automobile dealers, enabling vehicle sales to...

Credit Acceptance Corporation provides auto financing through nationwide automobile dealers, enabling vehicle sales to consumers regardless of credit history; approximately 79.5% of loans are made to borrowers with FICO scores below 650. Revenue is generated through interest income on Dealer Loans and Purchased Loans serviced under the Portfolio and Purchase Programs.

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