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CACC · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Credit Acceptance Corp (CACC) stock moving?
Credit Acceptance reported Q3 2026 results on Oct 29 with adjusted EPS of $13.01, beating the $12.34 estimate, but sales of $594.6M missed the $595.85M estimate. The company also posted a consolidated net loss of $56.6M, driven by a methodology adjustment to its forecast of future net cash flows. The shares fell 19.3% on Oct 30 to $464.89 on 386,927 shares, the heaviest volume in the period. TD Cowen kept its Hold rating but cut its price target from $590 to $470, and a law firm then announced an investigation into possible securities law violations, adding legal overhang. Since that low the stock has recovered to $535.97 by Nov 9, but it slipped 3.8% to $515.38 on Nov 10 on 91,458 shares, below the prior session's volume, and it still trades roughly 10% above the $470 target. Volume has faded steadily from the Oct 30 spike, which suggests the reaction is easing, but the net loss and methodology change leave the next quarter's results as the main unresolved test.
News behind the analysis
- TD Cowen Lowers Credit Acceptance Price Target to $470After Q3 results, TD Cowen kept its Hold rating on Credit Acceptance and cut its price target from $590 to $470.
- TD Cowen Maintains Hold on Credit Acceptance, Lowers Price Target to $470TD Cowen maintained its Hold rating on Credit Acceptance and lowered its price target to $470 following the third-quarter report.
- Block & Leviton Investigates Credit Acceptance Corporation for Potential Securities Law ViolationsLaw firm Block & Leviton opened an investigation into Credit Acceptance after a significant decline in financial performance and a subsequent stock price drop.
- Credit Acceptance Q3 2026 Earnings Call TranscriptTranscript of the third-quarter 2026 earnings call, held on Thursday, Oct 29, where management discussed the results.
- Credit Acceptance Corporation Reports Third Quarter 2026 Financial ResultsCredit Acceptance reported a consolidated net loss of $56.6M for Q3 2026, driven by a methodology adjustment to its forecast of future net cash flows.
- Credit Acceptance Q3 Adj. EPS $13.01 Beats $12.34 Estimate, Sales $594.600M Miss $595.850M EstimateAdjusted EPS of $13.01 beat the $12.34 consensus, while sales of $594.6M came in slightly below the $595.85M estimate.
About Credit Acceptance Corp
Credit Acceptance is a Southfield, Michigan auto lender. It works through a nationwide network of car dealers to finance used vehicles for buyers with weak or limited credit. It stands out for its unusual dealer-partnership model, where dealers share in the money collected on loans, and for its heavy use of share buybacks instead of dividends. Its share count has shrunk to roughly 10 million shares.
How it makes money
Most of its revenue is finance charges, the interest and fees earned on its loan portfolio of about $11.6 billion (as of mid-2026). Roughly three-quarters of that portfolio is 'Dealer Loans', where the dealer receives an upfront advance and then a share of later collections. The rest is 'Purchased Loans', which the company buys outright from dealers. Smaller revenue sources include premiums and commissions on vehicle service contracts and credit insurance sold with the loans. Quarterly revenue is roughly $580–590 million. Reported profit can swing widely because of large provisions set aside for expected credit losses.
What usually moves CACC
- Subprime borrower defaults and loan collection forecasts
- Loan volume through its dealer network
- Funding costs and asset-backed securities market conditions
- Regulatory and legal actions (state attorney general and CFPB matters)
- Used car prices and demand