Form 4: CACC Chief Sales Officer Exercises Options, Sells Shares

Credit Acceptance Corp's Chief Sales Officer, Daniel A. Ulatowski, exercised stock options and sold a portion of his common stock holdings, alongside tax-related share withholding.

Summary

• Daniel A. Ulatowski, Chief Sales Officer of Credit Acceptance Corp (CACC), reported transactions involving company common stock.
• On January 30, 2026, Mr. Ulatowski exercised employee stock options to acquire 589 shares of common stock at an exercise price of $333.94 per share.
• Concurrently on January 30, 2026, he sold 589 shares of common stock at a weighted average price of $500.12 per share, with prices ranging from $500.00 to $500.19.
• On January 31, 2026, 951.6 shares of common stock were withheld to satisfy tax withholding obligations related to the vesting and settlement of restricted stock units, at a price of $498.24 per share.
• Following these transactions, Mr. Ulatowski directly beneficially owns 27,338.4 shares of common stock and indirectly owns 4,000 shares through a trust.
• He also holds 32,411 employee stock options with an exercise price of $333.94, which are exercisable until December 30, 2026.

Sentiment

Score: 6

Explanation: StockSavvy.ai views these transactions as routine compensation-related activities, including the exercise of stock options for profit and the withholding of shares for tax purposes upon RSU vesting. The pre-planned nature under Rule 10b5-1 mitigates any negative signal from the sales.

Positives

• The exercise of stock options and subsequent sale resulted in a profit for the Chief Sales Officer, as shares were acquired at $333.94 and sold at a weighted average of $500.12.
• The transactions were made pursuant to a Rule 10b5-1 plan, indicating pre-planned activity rather than a reactive decision based on immediate market views.

Negatives

• The sale of 589 shares by a key executive, even if part of a pre-planned strategy, reduces direct insider ownership.
• An additional 951.6 shares were disposed of to cover tax obligations from restricted stock unit vesting, further reducing direct holdings.

Future Outlook

This filing does not contain forward-looking statements or guidance regarding the company's future performance.

Industry Context

StockSavvy.ai notes that routine insider transactions like option exercises and subsequent sales, especially when conducted under a Rule 10b5-1 plan, are common practices for executive compensation and liquidity management. These transactions are generally not indicative of a change in the company's fundamental outlook or management's confidence.

Related Party Transactions

• 4,000 shares of common stock are indirectly owned by Daniel A. Ulatowski through the D.&.B. Ulatowski Living Trust, where he and his spouse serve as trustees.

Stakeholder Impact

• Shareholders: The impact on shareholders is minimal, as these are routine insider compensation-related transactions and do not signal a significant shift in company strategy or performance.
• Employees: The transactions reflect standard executive compensation practices, including stock options and restricted stock units.

Key Dates

Recommendation

The filing details routine insider transactions involving the exercise of stock options and subsequent sales, along with tax-related share withholding from RSU vesting. These actions are common for executive compensation and liquidity management, often pre-planned under Rule 10b5-1, and do not provide a strong signal for a 'buy' or 'sell' recommendation. The insider retains significant direct and derivative holdings, suggesting a 'hold' position is appropriate based solely on this filing.

Keywords

CACC, Credit Acceptance Corp, Form 4, insider trading, stock options, restricted stock units, Daniel A. Ulatowski, Chief Sales Officer, Rule 10b5-1