Credit Acceptance Corporation (NASDAQ:CACC), a Michigan-based financial services company, experienced a sharp 15.38% drop to $0.04 by 11:22am ET Wednesday morning, as part of an overall decline trend which saw the NASDAQ drop 1.52% to 1,066.73.
About Credit Acceptance Corporation
Credit Acceptance Corporation provides capital loans to car dealerships, purchasing consumer loans from them and collecting any subsequent consumer repayments. With a trailing 12-month EPS of.95 and an impressive return on equity (ROE) score of 25.12%, this company shows how effectively investors’ funding can generate profits.
Investment Evaluation
Notably, Credit Acceptance’s Price-to-Earnings Ratio stands at 15.12, suggesting an investor would currently pay $0.12 for every $1 in annual earnings. Simply put, higher PE Ratios indicate an overpriced stock; currently Credit Acceptance’s PE Ratio may be slightly overvalued.
Financial Performance
Noteworthy is the firm’s earnings before interest, taxes, depreciation and amortization (EBITDA), which measures its operating performance, is currently at 80.29.
Stock Market Performance
Credit Acceptance currently trades considerably below its 52-week high of.44 but above its 52-week low of.00. Furthermore, its stock value lags behind both short- and long-term moving averages; giving an intricate picture of Credit Acceptance’s trajectory.
Future Outlook
Credit Acceptance experienced sales growth of 1.4% this quarter and estimates an uptick to 3.7% over the next. Such modest figures might signal cautious optimism among investors about Credit Acceptance’s future performance.
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