Booth Kenneth 4

What Happened

• Kenneth Booth, an executive board member and director of Credit Acceptance Corp (CACC), exercised stock options and immediately sold the resulting shares in two cashless transactions. He exercised 4,000 options on 2026-01-30 and 4,000 options on 2026-02-02 at an exercise price of $333.94 each (exercise cost $1,335,760 each time). He sold the 4,000 shares acquired on 2026-01-30 in the open market at $494.00 ($1,976,000) and sold the 4,000 shares acquired on 2026-02-02 at $514.00 ($2,056,000). Total gross sale proceeds for those two sales were about $4,032,000. Separately, 1,390.6 shares were withheld on 2026-01-31 to cover tax withholding related to RSU settlement (value reported ~$692,853), and he was granted 135 shares on 2026-02-01.

Key Details

• Transaction dates and prices:
  • 2026-01-30: Exercised 4,000 options at $333.94; sold 4,000 shares at $494.00 (sale proceeds $1,976,000).
  • 2026-01-31: 1,390.6 shares withheld for taxes at $498.24 (value ~$692,853).
  • 2026-02-01: Received 135 shares (award).
  • 2026-02-02: Exercised 4,000 options at $333.94; sold 4,000 shares at $514.00 (sale proceeds $2,056,000).
• Aggregate: Exercised 8,000 options and sold 8,000 shares for total gross proceeds ≈ $4,032,000. Tax withholding reduced share count by 1,390.6 shares (~$692,853).
• Shares owned after transaction: Not specified in the filing.
• Footnotes of note:
  • F1: Shares withheld to satisfy tax withholding on RSU vesting.
  • F2: Reporting person forfeited 38,809 unvested RSUs upon retirement as an officer/employee effective Jan 31, 2026.
  • F3: Due to Booth’s retirement effective Jan 31, 2026, option expiration dates were adjusted (from Apr 28, 2031 to Jan 31, 2028).
• Filing date: Form filed Feb 3, 2026; the filing does not indicate a late filing.

Context

• This was effectively a cashless exercise: Booth exercised options and immediately sold the shares, a common way to realize gains and cover exercise/tax costs. The separate tax-withholding entry reflects shares surrendered to cover tax obligations from RSU vesting. The filing also notes Booth’s retirement-related forfeiture of unvested RSUs and the shortened post-termination option expiration, which are administrative consequences of his retirement rather than market-timing signals.