In a recent transaction, Douglas W. Busk, the Chief Treasury Officer of Credit Acceptance Corp (NASDAQ:CACC), sold shares of the company's stock, generating significant investor interest. The sale, which took place on March 21, involved 2,500 shares at a price range of $572.58 per share, resulting in a total value of approximately $1.43 million.
On the same day, Busk also engaged in a buy transaction, acquiring 2,500 shares at a price of $333.94 each, amounting to a total of $834,850. This transaction was related to the exercise of options as part of the company's employee stock option plan.
The stock options exercised by Busk, initially representing the right to purchase 46,000 shares, are exercisable in four equal installments starting from December 30, 2021, which marked the first anniversary of the date the options were granted. Following these transactions, Busk's direct ownership in Credit Acceptance Corp has been adjusted to reflect the new totals of non-derivative and derivative securities.
Credit Acceptance Corp, based in Southfield, Michigan, operates within the personal credit institutions sector. These latest transactions provide a glimpse into the trading activities of one of the company's top executives, showcasing a balance of stock sales and option exercises. Investors often keep a close eye on such insider transactions as they can offer insights into the company's performance and the confidence that executives have in the company's future prospects.
InvestingPro Insights
The recent insider transactions at Credit Acceptance Corp (NASDAQ:CACC) by Chief Treasury Officer Douglas W. Busk have sparked investor interest, and a closer look at the company's financial metrics can provide further context. According to real-time data from InvestingPro, Credit Acceptance Corp has a market capitalization of $6.76 billion and a Price to Earnings (P/E) Ratio of 24.87, which adjusts to 23.5 when considering the last twelve months as of Q4 2023. Despite a challenging revenue growth environment with a -24.08% decline over the same period, the company maintains a high gross profit margin of 92.14%, reflecting its strong pricing power and cost management.
From an operational perspective, Credit Acceptance Corp's operating income margin stands at 41.08% for the last twelve months as of Q4 2023, demonstrating efficient operations and profitability. This aligns with one of the InvestingPro Tips, which notes that analysts predict the company will be profitable this year, a continuation of its performance over the last twelve months.
Another InvestingPro Tip worth noting is that Credit Acceptance Corp's liquid assets exceed its short-term obligations, indicating a solid liquidity position that may reassure investors of the company's ability to meet its immediate financial commitments. For those interested in further insights and tips, there are additional InvestingPro Tips available at https://www.investing.com/pro/CACC. Utilize the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, which includes access to these valuable tips.
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