Those following along with Credit Acceptance Corporation (NASDAQ:CACC) will no doubt be intrigued by the recent purchase of shares by Kenneth Booth, Chief Financial Officer of the company, who spent a stonking US$513k on stock at an average price of US$411. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 10%.
The Last 12 Months Of Insider Transactions At Credit Acceptance
In fact, the recent purchase by Kenneth Booth was the biggest purchase of Credit Acceptance shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$433. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider bought shares at close to current prices. Kenneth Booth was the only individual insider to buy shares in the last twelve months.
The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Credit Acceptance is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Credit Acceptance Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Credit Acceptance insiders own 27% of the company, currently worth about US$2.2b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Credit Acceptance Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Credit Acceptance. Nice! Of course, the future is what matters most. So if you are interested in Credit Acceptance, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.