CACC - Credit Acceptance trades lower amid new Hedgeye best idea short

• Auto loan company Credit Acceptance Corp. ( NASDAQ: CACC ) fell 3.5% amid a new best idea short call at Hedgeye.
• "Today, the rate of change for loan originations has slowed, delinquencies are beginning to rise, and dealers have turned their attention towards prime and away from subprime borrowers," Hedgeye analyst Josh Steiner wrote in a note earlier Tuesday. "Additionally, we think a growing real negative earnings rate from inflation has been weighing on CACC’s consumers."
• Hedgeye said its analysis is focused on the growing risks for subprime borrowers and CACC’s use of capital, with a particular emphasis on share buybacks.
• Hedgeye is hosting a presentation on its CACC short idea on Friday.
• Credit Acceptance ( CACC ) short interest is 12%.
• Last month, Credit Acceptance ( CACC ) extended $500M asset-backed financing.

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