In a recent transaction, David W. Ruttenberg, a director of Accel Entertainment, Inc. (NYSE:ACEL), sold 12,500 shares of the company's Class A-1 Common Stock. The transaction, which took place on August 15, resulted in a total sale value of approximately $137,451, with share prices ranging from $10.87 to $11.11.
The sale was conducted according to a prearranged Rule 10b5-1 trading plan, which allows insiders to establish a predetermined schedule for buying or selling securities and is intended to prevent any accusations of trading on non-public, material information. The plan had been adopted by Ruttenberg on December 15, 2023, and also involved Crilly Court Trust and Grant Place Fund LLC.
Following the sale, Ruttenberg's remaining stake in Accel Entertainment includes 550,526 shares. It is important to note that the sold securities are held by Grant Place Fund LLC, where Ruttenberg serves as the Manager. He has disclaimed beneficial ownership of these securities, except to the extent of his pecuniary interest.
Investors and followers of Accel Entertainment's financial movements can request detailed information about the specific prices at which the shares were sold within the reported range. This sale provides insight into the trading activities of the company's insiders and may be of interest to current and potential shareholders.
In other recent news, Accel Entertainment has reported record Q2 revenue of $309 million, marking a significant milestone for the company. The company's adjusted EBITDA stood at $50 million for the same quarter. Accel is also making strides in its expansion strategy with the pending acquisition of Fairmount Park, which will provide the company with a master sports betting license and a partnership with FanDuel.
These recent developments are part of Accel's aggressive growth strategy, which has seen the addition of nearly 50 new locations and same-store sales growth in key states. The company maintains a strong liquidity position, with $522 million at hand, including $255 million in cash and $267 million in credit availability. This financial stability is facilitating Accel's active pursuit of mergers and acquisitions, while also allowing for an ongoing share repurchase program.
Analysts from Andy Rubenstein and Mark Phelan have focused on the quality of Accel's equipment and its value proposition in underserved markets. They emphasized the company's firm stance on pursuing M&A opportunities, supported by sufficient liquidity and a capable team. The acquisition of Fairmount Park is seen as a significant step in Accel's expansion across the U.S. market.
InvestingPro Insights
As Accel Entertainment, Inc. (NYSE:ACEL) makes headlines with the recent insider trading activity, market participants may be curious about the company's financial health and performance metrics. With a market capitalization of $927.99 million, Accel Entertainment is navigating the market with a moderate level of debt and liquid assets that exceed its short-term obligations, according to InvestingPro Tips. This suggests a stable financial position that could reassure investors regarding the company's ability to meet its immediate financial commitments.
The company's Price to Earnings (P/E) ratio stands at 19.63, with an adjusted P/E ratio for the last twelve months as of Q2 2024 at a slightly lower 17.33, indicating a potential undervaluation by investors compared to its earnings. Additionally, Accel Entertainment is trading at a high Price to Book (P/B) multiple of 4.45, which could imply that the market has high expectations for the company's future growth, or that its assets are being valued at a premium by the market.
Investors might also be interested in knowing that Accel Entertainment's revenue growth for the last twelve months as of Q2 2024 is 5.74%, reflecting a steady increase in its financial intake. Moreover, analysts predict the company will be profitable this year, which is supported by the fact that it has been profitable over the last twelve months. It is also noteworthy that Accel Entertainment does not pay a dividend, which might be a relevant factor for income-focused investors to consider.
For those looking to delve deeper into Accel Entertainment's performance and financials, InvestingPro offers additional insights and tips that could further inform investment decisions. There are several other InvestingPro Tips available for Accel Entertainment at https://www.investing.com/pro/ACEL, providing a more comprehensive analysis for prospective and current investors.
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