BURR RIDGE, IL – Accel Entertainment, Inc. (NYSE:ACEL) Director David W. Ruttenberg recently sold a total of $110,596 worth of company stock, according to a new SEC filing. The transactions, which took place on June 12, 2024, involved shares of Class A-1 Common Stock and were executed at prices ranging from $10.5217 to $10.5223.
The sale was conducted under a Rule 10b5-1 trading plan, a mechanism that allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information. The plan had been established on December 15, 2023, and involves both Crilly Court Trust and Grant Place Fund LLC, entities with which Ruttenberg is associated.
Specifically, Ruttenberg sold 5,210 shares at a weighted average price slightly above $10.52, followed by another batch of 5,301 shares at nearly the same average price. The transactions were carried out in multiple trades within the stated price ranges.
Following these transactions, Ruttenberg's holdings in Accel Entertainment are adjusted, with the SEC filing indicating a remaining ownership of 436,335 shares after one of the sales and 576,226 shares after the other. It is worth noting that the securities sold were held by trusts and entities in which Ruttenberg has a beneficial interest. Ruttenberg has disclaimed beneficial ownership of these securities, except to the extent of his pecuniary interest.
As of the time of reporting, Accel Entertainment, a leader in amusement and recreation services, has not made any official statement regarding the transactions. The details of the sales, including the specific number of shares sold at each price point within the range, have been made available upon request to the issuer, security holders, or staff of the Securities and Exchange Commission.
Investors and the market at large often monitor insider transactions as they can provide insights into an insider's perspective on the value of the company's stock. However, such sales are not uncommon and are often part of personal financial planning strategies of company executives and directors.
In other recent news, Accel Entertainment has reported a steady growth in Q1 2024, with revenues increasing by 2.9% year-over-year (YoY) to $302 million and a slight 0.3% rise in adjusted EBITDA to $46 million. This growth is attributed to the company's expansion into new territories and a robust pipeline for future growth, which have offset negative same-store sales growth due to unfavorable weather conditions. Accel Entertainment is also actively evaluating multiple opportunities for expansion across the country.
Despite the challenges of unfavorable weather and rising labor and material costs, Accel Entertainment has managed to outperform competition in Illinois, Montana, Nevada, and Georgia. The company 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's executives, including Andrew Rubenstein and Mathew Ellis, have highlighted the strong sales front and opportunities for location growth. These recent developments indicate that Accel Entertainment is poised for continued growth in the future.
InvestingPro Insights
Amid the recent insider trading activity at Accel Entertainment, Inc. (NYSE:ACEL), investors are keen to understand the company's financial standing and future prospects. According to InvestingPro data, Accel Entertainment has a market capitalization of $832.44 million and is currently trading at a Price to Earnings (P/E) ratio of 19.14, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at 16.36. This adjusted P/E ratio suggests a more favorable earnings perspective than the standard P/E might indicate.
On the growth front, the company has reported a revenue growth of 10.59% over the last twelve months as of Q1 2024, a sign of positive momentum. Additionally, Accel Entertainment's revenue growth for Q1 2024 stood at 2.94%, reflecting a steady increase in its quarterly performance.
InvestingPro Tips highlight that while analysts have recently revised their earnings estimates downwards for the upcoming period, they also predict the company will be profitable this year. Furthermore, Accel's liquid assets exceed its short-term obligations, providing financial flexibility. Notably, the company is trading near its 52-week low, which may attract investors seeking value opportunities. However, it's trading at a high Price to Book multiple of 4.19. Accel Entertainment does not pay a dividend, which could be a consideration for income-focused investors.
For those looking to delve deeper into Accel Entertainment's financials and future outlook, InvestingPro offers additional tips and metrics. With a subscription, users gain access to comprehensive analysis and advanced tools to aid in making informed investment decisions. To explore these insights, visit https://www.investing.com/pro/ACEL and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are six more InvestingPro Tips available, providing a broader view of the company's performance and potential.
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