Form 4: Director Booth Trades Credit Acceptance Stock

Director Kenneth Booth of Credit Acceptance Corp. reported transactions involving the acquisition and disposition of common stock and employee stock options.

Summary

• Kenneth Booth, a Director at Credit Acceptance Corp. (CACC), reported transactions on April 20, 2026.
• Booth acquired 4,000 shares of common stock at a price of $333.94 per share.
• Simultaneously, Booth disposed of 4,000 shares of common stock at a price of $534 per share.
• Following these transactions, Booth beneficially owns 22,831.9 shares of common stock directly.
• Booth also holds employee stock options, with 4,000 options acquired on April 20, 2026, with an exercise price of $333.94.
• These options are exercisable between December 30, 2024, and December 30, 2026.
• Additionally, Booth holds another block of 110,000 employee stock options with an exercise price of $390.39, exercisable between January 31, 2028.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this filing as neutral, as it reports routine insider transactions without explicit positive or negative financial performance indicators.

Positives

• Director Kenneth Booth acquired shares at a lower price ($333.94) and disposed of shares at a higher price ($534), indicating a profitable transaction.
• The acquisition of employee stock options suggests continued incentive and potential future value for management.
• Booth's direct beneficial ownership of 22,831.9 shares indicates a significant personal stake in the company.

Negatives

• The disposition of 4,000 shares at a higher price than the acquisition price could be interpreted as a sale of stock by an insider, which may raise concerns for some investors.
• The exercise price of some options ($390.39) is higher than the current market price implied by the stock acquisition, suggesting these options are currently out-of-the-money.

Risks

• The filing does not explicitly mention any risks or challenges.
• The nature of the transactions (acquisition and disposition on the same day) could be subject to market interpretation and potential scrutiny.

Future Outlook

The filing does not contain forward-looking statements or guidance. The details pertain to past transactions and current beneficial ownership.

Management Comments

• The filing includes a signature from Kenneth S. Booth, indicating his direct involvement and acknowledgment of the reported transactions.

Industry Context

StockSavvy.ai notes that Form 4 filings are standard disclosures for insider transactions in the financial services sector, particularly for companies like Credit Acceptance Corp. which operate in the auto finance industry. Such filings provide transparency into executive and director dealings with company stock.

Corporate Governance

Stakeholder Impact

• Shareholders: The sale of shares by a director may be interpreted by some shareholders as a signal of reduced confidence, while the acquisition at a lower price and sale at a higher price could be seen as a profitable insider move.
• Employees: The continued holding and acquisition of stock options by a director reinforces the alignment of management interests with long-term company performance.
• Creditors: No direct impact is indicated by this filing.

Next Steps

• The filing itself represents a completed action of reporting transactions.
• Future transactions by Kenneth Booth would be reported in subsequent Form 4 filings.

Key Dates

Keywords

Credit Acceptance Corp, CACC, Form 4, Insider Trading, Stock Options, Beneficial Ownership, Director Transactions, Securities Exchange Act, Rule 10b5-1