Accel Entertainment, Inc. (NYSE:ACEL) director David W. Ruttenberg has sold a total of 3,614 shares of the company's stock in recent transactions, according to the latest SEC filings. The sales, which took place on July 17 and 18, amounted to over $37,968 in total.
Investors tracking insider activity may note that Ruttenberg's transactions were executed at prices ranging from $10.50 to $10.5063 per share. The sales were conducted under a pre-arranged 10b5-1 trading plan, a tool that allows insiders to set up a predetermined schedule for buying or selling stocks at a future date, which can help them avoid accusations of trading on insider knowledge.
Ruttenberg's trades, as detailed in the filings, were carried out in multiple transactions. On July 17, he sold 13 shares at a price of $10.50 each. The following day, he made two separate sales: the first of 1,801 shares at a weighted average price of $10.5056, and the second of 1,800 shares at a weighted average price of $10.5063.
Following these transactions, Ruttenberg still holds a substantial number of shares indirectly through entities such as Grant Place Fund LLC and the Crilly Court Trust, as indicated in the footnotes of the SEC filing. The director has disclaimed beneficial ownership of these securities except to the extent of his pecuniary interest.
For those keeping a close eye on insider trades, these recent sales by a director of Accel Entertainment may be of interest as they observe the movements of company executives and their confidence in the firm's stock. As always, insider sales and purchases can provide valuable information to the market, but they are just one factor to consider when evaluating a company's financial health and investment potential.
In other recent news, Accel Entertainment showcased steady growth in the first quarter of 2024. The company reported a 2.9% year-over-year (YoY) increase in revenue, amounting to $302 million, and a slight 0.3% rise in adjusted EBITDA to reach $46 million. These figures are attributed to Accel's expansion into new regions and a robust growth pipeline, which offset the negative impact of poor weather on same-store sales growth.
In addition to these developments, Accel Entertainment has announced a $200 million share repurchase program. The company maintains a strong balance sheet, reporting $286 million in net debt and $553 million in liquidity. Despite rising labor and material costs causing caution in new location acquisition, Accel continues to outperform competitors in Illinois, Montana, Nevada, and Georgia.
These recent developments reflect Accel Entertainment's active evaluation of expansion opportunities across the country. The company expects to penetrate multiple markets by the end of the year. Accel's Q1 2024 performance sets a promising tone for the year, with the company keen on sharing more about its growth strategies in future updates.
InvestingPro Insights
Accel Entertainment (NYSE:ACEL) has been making headlines with insider stock sales, and investors are keen to understand the financial underpinnings that may influence such decisions. According to real-time data from InvestingPro, Accel Entertainment boasts a market capitalization of approximately $845.86 million, reflecting the company's value as perceived by the market. The company's Price/Earnings (P/E) Ratio is currently at 19.92, suggesting investors are willing to pay nearly $20 for every dollar of earnings, which aligns with the company's profitability over the last twelve months.
The Price to Book (P/B) ratio stands at 4.22, indicating that the stock is trading at a premium relative to the company's book value, a sentiment echoed by one of the InvestingPro Tips, which notes that Accel is trading at a high P/B multiple. This could be a reflection of the market's optimism about the company's growth prospects, especially since another InvestingPro Tip highlights analysts' predictions that the company will be profitable this year.
When it comes to revenue, Accel Entertainment has shown a growth of 10.59% over the last twelve months as of Q1 2024, with a gross profit margin of 30.23%, showcasing the company's ability to translate sales into profit efficiently. These figures are critical for investors to consider, especially when juxtaposed against insider trading activities.
For those interested in a deeper dive, there are more InvestingPro Tips available on the platform. Use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription for additional insights, including liquid assets exceeding short-term obligations and the company's dividend policy. With a total of 5 additional tips listed in InvestingPro, investors can gain a more comprehensive understanding of Accel Entertainment's financial position and future outlook.
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