Credit Acceptance Corp chief treasury officer sells stock worth $1.55 million

Published 27/03/2025, 21:08
Credit Acceptance Corp chief treasury officer sells stock worth $1.55 million

Douglas W. Busk, the Chief Treasury Officer of Credit Acceptance Corp (NASDAQ:CACC), executed a significant stock transaction earlier this week. According to a recent SEC filing, Busk sold 3,000 shares of the company’s common stock on March 25, 2025, at a price of $515.97 per share, totaling approximately $1.55 million. The transaction comes as the company maintains strong financial health, with InvestingPro data showing a robust current ratio of 5.17 and liquid assets exceeding short-term obligations.

In a related transaction, Busk also exercised stock options to acquire 3,000 shares at $333.94 each, amounting to a total exercise value of $1,001,820. Following these transactions, Busk’s direct ownership of Credit Acceptance Corp shares stands at 3,112 shares. The company has demonstrated solid performance with a gross profit margin of 92% and positive earnings expectations, according to InvestingPro analysis.

These moves are part of routine financial activities by company executives and are closely monitored by investors for insights into the company’s valuation and insider sentiment. With the stock currently trading near its Fair Value based on InvestingPro calculations, investors can access detailed valuation metrics and 6 additional ProTips through the platform’s comprehensive analysis tools.

In other recent news, Credit Acceptance Corporation reported strong financial results for the fourth quarter of 2024, surpassing earnings and revenue expectations. The company achieved an earnings per share (EPS) of $10.17, significantly exceeding the anticipated $7.93, while revenue reached $565.9 million, above the forecasted $522.6 million. Additionally, Credit Acceptance announced an upsized offering of senior notes, increasing the amount from $400 million to $500 million. The proceeds are intended primarily for redeeming existing notes due in 2026, with the remainder allocated for general corporate purposes.

In a separate development, Credit Acceptance had initially planned a $400 million senior notes offering, aimed at redeeming its outstanding 2026 notes. The company’s loan portfolio reached a record high of $8.9 billion, reflecting a 15% year-over-year increase. Analysts from firms such as TD Cowen and Janney Montgomery and Scott discussed the company’s strategic adjustments, including changes to its scorecard, which may impact future origination growth. Despite the earnings beat, Credit Acceptance’s stock experienced a slight decline, which might be attributed to broader market conditions or investor caution.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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