Form 4: CACC Chief Alignment Officer Sells Shares Under 10b5-1 Plan

Credit Acceptance Corp's Chief Alignment Officer, Nicholas J. Elliott, sold 350 shares of common stock for $521.73 per share under a pre-arranged plan.

Summary

• Nicholas J. Elliott, Chief Alignment Officer of Credit Acceptance Corp (CACC), reported a transaction involving the sale of common stock.
• On September 5, 2025, Elliott sold 350 shares of CACC common stock at a price of $521.73 per share.
• This transaction was made pursuant to a contract, instruction, or written plan for the purchase or sale of equity securities, intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).
• Following the transaction, Elliott directly beneficially owns 19,034.86 shares, which includes 18,373 unvested restricted stock units granted under the Company's Incentive Compensation Plan.
• Additionally, Elliott indirectly owns 315 shares through the Credit Acceptance Stock Fund of the Credit Acceptance Corporation 401(k) Profit Sharing Plan and Trust.
• Elliott also holds 13,950 employee stock options with an exercise price of $333.94, which became exercisable on December 30, 2024, and expire on December 30, 2026.

Sentiment

Score: 6

Explanation: The reported insider sale was conducted under a Rule 10b5-1 plan, indicating a pre-scheduled transaction rather than a discretionary sale based on new information. The officer retains substantial equity and options, maintaining strong alignment with shareholder interests.

Positives

• The reported stock sale was executed under a Rule 10b5-1 plan, indicating it was a pre-scheduled transaction and not based on new, non-public information, which mitigates potential negative interpretations of insider selling.
• The Reporting Person retains significant direct beneficial ownership of 19,034.86 shares, including 18,373 unvested restricted stock units, demonstrating continued long-term interest and alignment with shareholder value.
• Holds 13,950 employee stock options, further aligning interests with the company's performance and shareholder value.

Negatives

• Chief Alignment Officer Nicholas J. Elliott sold 350 shares of common stock, reducing his direct equity stake in the company.

Stakeholder Impact

• Shareholders may note the insider selling, but the transaction's execution under a Rule 10b5-1 plan suggests it is a routine, pre-planned event rather than a signal of negative company performance. The officer's significant remaining holdings and options indicate continued alignment with shareholder interests.

Key Dates

Recommendation

The filing details a routine insider stock sale by the Chief Alignment Officer, executed under a pre-arranged 10b5-1 plan. This transaction, involving a relatively small number of shares compared to the officer's total holdings and the company's market capitalization, does not provide new material information to alter the investment thesis for Credit Acceptance Corp. The officer retains significant equity and options, indicating continued alignment with shareholder interests. Therefore, a 'hold' recommendation is appropriate as this event does not fundamentally change the company's outlook.

Keywords

Credit Acceptance Corp, CACC, Nicholas J. Elliott, Insider Trading, Form 4, Stock Sale, Chief Alignment Officer, Equity Transaction, 10b5-1 Plan