Accel Entertainment director sells $137k in stock By Investing.com

Accel Entertainment, Inc. (NYSE:) director David W. Ruttenberg recently sold shares of the company’s stock, according to a new SEC filing. Ruttenberg offloaded a total of 12,500 shares at an average price of $10.9991, netting approximately $137,488 from the sale.

The transactions were executed on August 15, 2024, and were reported in a Form 4 document filed with the Securities and Exchange Commission on August 20, 2024. The sales took place at prices ranging from $10.87 to $11.11 per share.

Following the sale, Ruttenberg’s stake in the company stands at 410,635 shares of Class A-1 Common Stock. It is important to note that the shares sold by Ruttenberg were held by the Crilly Court Trust, for which he is a beneficiary. Ruttenberg has disclaimed beneficial ownership of these securities except to the extent of his pecuniary interest.

The filing indicated that the stock sale was conducted in accordance with a Rule 10b5-1 trading plan, which was adopted on December 15, 2023. This plan allows company insiders to sell shares at predetermined times to avoid accusations of trading on nonpublic information.

Investors often monitor insider sales as they may provide insights into an insider’s view of the company’s current valuation and future prospects. However, it is also not uncommon for executives to sell shares for reasons that may not necessarily reflect their outlook on the company, such as diversifying their investment portfolio or meeting personal financial objectives.

Accel Entertainment specializes in amusement and recreation services and is incorporated in Delaware. The company’s common stock is traded on the New York Stock Exchange under the ticker symbol ACEL.

In other recent news, Accel Entertainment has reported a record Q2 revenue of $309 million, along with an adjusted EBITDA of $50 million. The company has also made considerable strides in its expansion and acquisition strategy, with the pending acquisition of Fairmount Park, which includes a master sports betting license and a partnership with FanDuel.

Accel Entertainment’s growth is largely due to the addition of nearly 50 new locations and positive same-store sales growth in key states. The company maintains a strong liquidity position, with $522 million, including $255 million in cash and $267 million in credit availability. As part of its $200 million share repurchase program, Accel has repurchased 906,000 shares at an average price of $10.16, totaling $9 million.

These recent developments show Accel Entertainment actively pursuing growth through mergers and acquisitions, while also returning capital to shareholders. The acquisition of Fairmount Park is expected to close in Q4 2024. The company also anticipates that the Illinois gaming tax increase will be offset by the introduction of ticket-in, ticket-out (TITO) technology, potentially increasing market revenue by 5-10%.

While there was a slight decline in Nevada due to increased supply, Accel Entertainment remains optimistic about growth opportunities and its financial position. The company sees significant growth potential in the Montana market and expects continued demand in the Nevada market.

InvestingPro Insights

Accel Entertainment, Inc. (NYSE:ACEL) has recently been under the spotlight due to insider stock sales. For investors considering the implications of these sales on their investment decisions, certain metrics and tips from InvestingPro may provide additional context.

InvestingPro Data shows that Accel Entertainment has a market capitalization of $923.86 million, with a Price/Earnings (P/E) Ratio of 19.62. This valuation metric is adjusted to a P/E Ratio of 17.14 when looking at the last twelve months as of Q2 2024. The company’s revenue has experienced growth, with a 5.74% increase over the same period, indicating a steady upward trend in its financial performance.

From a profitability standpoint, InvestingPro Tips highlight that analysts predict Accel Entertainment will be profitable this year, supported by the company’s performance over the last twelve months. Additionally, it’s worth noting that the company operates with a moderate level of debt, which can be a sign of prudent financial management, especially in uncertain market conditions.

However, potential investors should be aware that Accel Entertainment is trading at a high Price/Book multiple of 4.41 as of Q2 2024, which suggests the stock may be valued richly compared to its book value. This could be a point of consideration when evaluating the stock’s current price, especially in relation to the recent insider selling activity.

The company does not pay a dividend to shareholders, which may influence the investment strategy of those seeking regular income from their stock holdings. For investors seeking further insights, there are additional InvestingPro Tips available at https://www.investing.com/pro/ACEL, which may provide more detailed analysis and guidance.

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