Credit Acceptance CFO’s Insider Trades Signal Confidence Amid Strong 13.3% Rally

Insider Activity Highlights the CFO’s Balancing Act

Credit Acceptance Corp. (CACC) has experienced a noticeable surge in insider trading during the first week of February, with Chief Sales Officer Daniel Ulatowski’s latest filings underscoring a strategic approach to equity management. The officer’s most recent 4‑filed transaction on January 30th involved the purchase of 589 shares at an average price of $333.94, bringing his post‑transaction holding to 28,879 shares. This acquisition is bracketed by a sizeable sale of 589 shares at $500.12 and a subsequent sale of 951.60 shares at $498.24, all executed on consecutive days.

The timing of these trades aligns with a significant social‑media buzz of 411 % and a net positive sentiment score of +61, suggesting Ulatowski is attempting to signal confidence in the company’s valuation amid a 13.3 % weekly rally. The pattern of alternating buys and sells is characteristic of a “tactical” insider who actively manages personal exposure while maintaining a long‑term stake.

Investor Implications and Company Outlook

From an investment perspective, Ulatowski’s transactions imply a rebalancing strategy rather than a hedging maneuver. Holding a sizable position—over 28,000 shares, approximately 0.5 % of outstanding shares—he has not divested significantly in the last six months. Selling at a premium to his purchase price and then rebuying at a lower price indicates a belief that the stock is undervalued relative to its 52‑week high of $549.75. Such insider activity can reassure shareholders that key executives remain aligned with long‑term value creation, particularly as the firm navigates a competitive auto‑dealer financing landscape and recent market volatility.

Ulatowski’s Insider Profile

Since December 2025, Ulatowski has completed at least 12 transactions, with a roughly equal split between buys (≈ 4,500 shares) and sells (≈ 5,000 shares). He frequently sells at or near the top of the daily price range, as seen on January 30th, then follows with a purchase at a lower price later that week. His most recent series of employee‑stock‑option (ESO) sales—over 600 shares on January 30th—highlights a willingness to liquidate option rights to fund cash‑flow needs or diversify holdings. Despite this turnover, his overall holding has remained above 30,000 shares since mid‑2025, underscoring a long‑term commitment.

Market Context and Broader Insider Trends

CACC’s stock is currently trading near $511.43 and has posted a robust 13.3 % weekly gain, buoyed by positive sentiment and a notable 411 % buzz. This momentum coincides with a broader narrative about consumer‑finance firms gaining traction as auto‑dealer financing remains a critical niche. The company’s price‑to‑earnings ratio of 12.69 suggests a modest valuation relative to its peers.

Insider trading activity across the board—most notably the significant buys by Executive Board Member Kenneth Booth—mirrors a pattern of confidence in the firm’s business model and strategic positioning. Investors should view Ulatowski’s trades as part of a broader insider confidence narrative rather than a red flag, and may consider this alignment when evaluating their own positions in CACC.