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CACC: Buybacks And Leadership Transition Will Shape A Balanced Forward Outlook

CACC: Share Repurchases And Leadership Transition Will Shape Lending Landscape

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CACC
AnalystConsensusTarget
Not Invested
Published 29 Aug 2024

Update shared on 04 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-4.0%
7D
3.6%

Analysts have modestly lowered their price target on Credit Acceptance to $458.00 from $458.00, reflecting a slightly reduced discount rate and marginally lower future P E assumptions while maintaining strong expectations for growth and margins.

What's in the News

  • On September 29, 2025, the Board authorized a new share repurchase plan allowing Credit Acceptance to buy back up to 2,000,000 shares with no set expiration date (Key Developments).
  • From July 1, 2025 to September 30, 2025, the company repurchased 230,064 shares, about 2.05% of shares outstanding, for $106.39 million. This brought total purchases under the August 24, 2023 authorization to 1,838,933 shares, or 15.3%, for $921.17 million (Key Developments).
  • From September 29, 2025 to September 30, 2025, the company reported no additional share repurchases under the newly announced buyback. This effectively marked the program as authorized but not yet utilized in that initial period (Key Developments).
  • CEO and President Kenneth S. Booth will retire effective January 31, 2026 and will remain on the Board. Current director Vinayak R. Hegde will become Chief Executive Officer on November 13, 2025, and Booth will transition to Executive Board Member (Key Developments).

Valuation Changes

  • Fair Value Estimate: Unchanged at $458.00 per share, indicating no revision to the central valuation target.
  • Discount Rate: Fallen slightly from 10.95% to approximately 10.78%, reflecting a modest reduction in perceived risk or required return.
  • Revenue Growth: Effectively unchanged, remaining around 31.95%, suggesting stable long term growth expectations.
  • Net Profit Margin: Effectively unchanged at roughly 18.51%, indicating consistent margin assumptions in the updated model.
  • Future P/E: Edged down slightly from about 9.55x to 9.50x, implying a marginally lower valuation multiple applied to future earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.