Accel Entertainment, Inc. (NYSE:ACEL) director Karl Peterson has sold a significant portion of his holdings in the company, according to recent filings. The transactions, which took place over two consecutive days, resulted in a total sale value of over $647,000 for the Class A-1 common stock.
On the first day, Peterson sold 30,000 shares at a weighted average price of $10.0319, with individual sales prices ranging from $10.02 to $10.07. The following day, an additional 34,870 shares were sold at a weighted average price of $9.9328, with prices varying between $9.86 and $9.99 per share. These sales have significantly reduced Peterson’s holdings in Accel Entertainment, with the final transaction leaving him with zero shares in direct ownership.
The sales represent a notable change in Peterson’s stake in the company, which is known for providing gaming and amusement services. The transactions were disclosed in a mandatory filing with the Securities and Exchange Commission, which provides transparency into the trading activities of company insiders.
Investors often monitor such sales for insights into the perspectives of company executives and directors regarding their company's stock. While the reasons behind Peterson’s sale have not been disclosed, the information provided in the filings allows shareholders to stay informed about significant changes in insider ownership.
Accel Entertainment has not commented on the transactions, and it remains to be seen how this sale will impact the company's stock performance or investor sentiment. Shareholders and potential investors can access full details of the sales upon request, as noted in the footnotes of the SEC filing.
In other recent news, Accel Entertainment reported steady growth in Q1 2024 with a revenue increase of 2.9% year-over-year (YoY) to $302 million and a marginal 0.3% rise in adjusted EBITDA to $46 million. The company's expansion into new locations, such as Illinois and Nebraska, and a robust pipeline for future growth have contributed to these results, even with negative same-store sales growth due to unfavorable weather conditions. Accel Entertainment also announced a $200 million share repurchase program and maintains a strong balance sheet with $286 million in net debt and $553 million in liquidity.
The company is actively evaluating multiple opportunities for expansion across the country and aims to understand potential revenue fully before pricing new opportunities. Despite challenges, Accel Entertainment is consistently outperforming competition in Illinois, Montana, Nevada, and Georgia. However, a decrease in location hold per day in Illinois has led to a cautious approach to new location growth.
Andrew Rubenstein and Mathew Ellis provided insights into the company's strong sales front, opportunities for location growth, and the Nevada market's performance. These are recent developments, devoid of any speculation or subjective assessment, and are based on verifiable facts.
InvestingPro Insights
In light of the recent insider transactions involving Accel Entertainment, Inc. (NYSE:ACEL), current and prospective investors might find the following data and insights from InvestingPro useful in assessing the company's financial health and market position:
InvestingPro Data reveals that Accel Entertainment has a market capitalization of $832.44 million, with a Price/Earnings (P/E) ratio standing at 19.14. This valuation comes as the company has shown a revenue growth of 10.59% over the last twelve months as of Q1 2024, highlighting its ability to expand its top-line figures. Additionally, the company has maintained a stable gross profit margin of 30.23% during the same period, demonstrating its effectiveness in managing the cost of goods sold relative to sales.
From the perspective of InvestingPro Tips, it is noteworthy that despite trading near its 52-week low, analysts predict that Accel Entertainment will be profitable this year. This insight may provide a silver lining for investors concerned about the recent insider stock sales. Moreover, the company's liquid assets exceed its short-term obligations, suggesting a solid liquidity position that could reassure investors of the company's ability to meet its immediate financial commitments.
For those looking to delve deeper into Accel Entertainment's financial metrics and gain additional insights, InvestingPro offers more tips to guide investment decisions. By using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to a wealth of data and analysis tools. Currently, there are 6 additional InvestingPro Tips available for Accel Entertainment at https://www.investing.com/pro/ACEL, which could further inform investment strategies and decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.