Insider Trading May 20, 2026 04:10 PM

Credit Acceptance CTO Sells Shares Following Stock Option Exercise

Analysis of Nicholas Elliott's disposition of common stock amid company gains and recent earnings report.

By Maya Rios CACC

Nicholas J. Elliott, Chief Transformation Officer at Credit Acceptance Corp (NASDAQ:CACC), sold a total value of shares totaling approximately $1,002,618 on May 18, 2026. This selling activity followed his exercise of employee stock options. The transaction occurred while CACC’s stock was trading near its 52-week high, following a 33% return over the past six months and currently trading at $558.

Credit Acceptance CTO Sells Shares Following Stock Option Exercise
CACC

Key Points

  • The CTO executed a significant sale of shares valued at over $1 million after exercising options.
  • CACC reported an adjusted EPS of $10.71 for Q1 2026, beating expectations and signaling operational improvement.
  • The company is actively integrating artificial intelligence to stabilize its loan portfolio and enhance efficiency.

On May 18, 2026, Nicholas J. Elliott, Chief Transformation Officer of Credit Acceptance Corp (NASDAQ:CACC), executed a sale of shares valued at approximately $1,002,618. This disposition of common stock followed the exercise of previously granted employee stock options.

The timing of these sales is notable as CACC's stock price was trading near its 52-week high of $565. The company's shares have shown significant gains over the past half year, recording a 33% return and maintaining a current trade value around $558.

Details of Share Transactions

Mr. Elliott sold a combined total of 1,815 shares of common stock across multiple transactions. The sale prices for these shares spanned a range from $550.00 to $556.31 per share. The sales were structured as follows:

  • First Group of Sales: 616 shares were sold, achieving a weighted average price of $550.19 per share. Individual transactions within this group ranged narrowly from $550.00 to $550.95.
  • Second Group of Sales: An additional 252 shares were disposed of, with a weighted average price calculated at $551.43 per share. The specific transaction prices for this segment varied from $551.24 to $551.64.
  • Third Group of Sales: 306 shares were sold, posting a weighted average price of $552.62 per share, with individual sale prices ranging between $552.47 and $552.73.
  • Fourth Group of Sales: 480 shares were sold at $554.44 per share, covering a price range from $553.85 to $554.81.
  • Fifth Group of Sales: 41 shares were disposed of near the top end, with a weighted average price of $554.93 per share (ranging from $554.92 to $555.00).
  • Sixth Group of Sales: The final 120 shares were sold at $556.30 per share, with a minimal price range noted between $556.30 and $556.31.

Preceding Acquisition Activity

Crucially, these sales followed Mr. Elliott's acquisition of the same 1,815 shares of common stock through the exercise of employee stock options. The cost basis for this acquisition was set at $333.94 per share, resulting in an approximate total acquisition value of $606,101.

The details regarding these options included an exercise date of December 30, 2024, and a subsequent expiration date scheduled for December 30, 2026.

Current Holdings and Valuation Context

Following the conclusion of these transactions, Mr. Elliott's direct ownership stake in Credit Acceptance common stock stands at 20,897.3 shares. Furthermore, he retains an indirect holding of 323 shares within the Credit Acceptance Stock Fund of the Credit Acceptance Corporation 401(k) Profit Sharing Plan and Trust.

From a market analysis perspective, data provided by InvestingPro indicates that CACC may currently be undervalued based on its trading metrics. Specifically, the company is observed to trade with a Price-to-Earnings (P/E) ratio of 13.98.

Recent Corporate Performance Highlights

Beyond insider activity, Credit Acceptance Corporation recently released its first quarter earnings for 2026. These results reported an adjusted Earnings Per Share (EPS) amount of $10.71. This figure represents a positive outcome, as it surpassed the previously projected EPS estimate of $10.5.

The company's recent performance underscores several strategic initiatives aimed at stabilizing its loan portfolio and improving overall operational efficiencies. A key element highlighted in these developments is the integration of artificial intelligence into the company's framework. Industry analysts have noted that these ongoing efforts are significant for investors, as they signal a focused effort by Credit Acceptance to enhance its core operational structure. The positive earnings report serves to emphasize Credit Acceptance’s sustained commitment toward achieving its stated financial objectives.

Market Data and Analysis

MetricValue
Current Price (Closed)558.09
Daily Change▲+10.16 (+1.85%)
After Hours Price557.94

The stock chart data provided illustrates the trading activity, showing price points across various time intervals throughout the day.


Note: The analysis of CACC is supported by financial metrics such as its P/E ratio and recent earnings reports, providing context to the insider selling activities.

Risks

  • The sale by a senior executive (CTO) following the exercise of options could be interpreted as a lack of internal confidence despite positive earnings.
  • While CACC reports strong recent earnings, future performance is dependent on the successful integration and impact of new technologies like artificial intelligence.
  • Market valuation metrics suggest CACC may be undervalued at current levels (P/E ratio of 13.98), but this does not guarantee future stock price stability.

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