Secretary Derek Harmer of Accel Entertainment, Inc. (NYSE:ACEL) recently sold shares of the company's stock, according to the latest SEC filings. On June 20, 2024, Harmer disposed of 5,000 shares at a price of $10.0 per share, totaling $50,000 in the transaction.
The sale was conducted under a pre-arranged 10b5-1 trading plan, a tool that allows company insiders to set up a predetermined schedule for selling stocks they own. Harmer had set up this plan on December 15, 2023, with the stipulation that he was not privy to any material nonpublic information about Accel Entertainment at the time of creating the plan. The plan was designed to execute trades on his behalf automatically, based on the criteria that had been established in advance.
Following the sale, Harmer still retains a significant number of shares in the company, owning 187,804 shares of Class A-1 Common Stock directly after the transaction. The move adjusts his position in the company but still leaves him with substantial investment in Accel Entertainment's performance.
Investors often monitor insider sales as they can provide insights into an insider's perspective on the company's current valuation or future prospects. However, sales under 10b5-1 plans are typically viewed as less indicative of insider sentiment, since they are set up in advance to execute automatically regardless of ongoing developments in the company.
Accel Entertainment, based in Burr Ridge, Illinois, operates in the amusement and recreation services sector and is incorporated in Delaware. The company's stock is traded on the New York Stock Exchange under the ticker symbol ACEL.
In other recent news, Accel Entertainment has reported steady growth in Q1 2024. The company's revenue saw a year-over-year increase of 2.9%, amounting to $302 million, while its adjusted EBITDA rose slightly by 0.3% to $46 million. Accel's expansion into new locations such as Illinois and Nebraska, coupled with a robust growth pipeline, has offset the negative impact of unfavorable weather conditions on same-store sales growth.
Accel Entertainment has also announced a $200 million share repurchase program, demonstrating the company's financial strength. With a net debt of $286 million and liquidity of $553 million, the company maintains a healthy balance sheet.
Despite challenges such as rising labor and material costs, and a decrease in location hold per day in Illinois, Accel Entertainment is consistently outperforming competition in several markets including Illinois, Montana, Nevada, and Georgia. The company is actively exploring opportunities for expansion across the country and expects to enter multiple markets by year-end. These are among the recent developments for Accel Entertainment.
InvestingPro Insights
In light of the recent insider stock sale by Secretary Derek Harmer of Accel Entertainment, Inc. (NYSE:ACEL), investors may be curious about the company's financial health and market performance. According to real-time data from InvestingPro, Accel Entertainment has a market capitalization of $847.51 million, with a P/E ratio that stands at 19.73. The company's price-to-book ratio over the last twelve months as of Q1 2024 is 4.19, indicating that the stock is trading at a high multiple of its book value. This could suggest that investors have high expectations for the company's future growth or that the stock is potentially overvalued relative to its assets.
Accel Entertainment's revenue growth has been positive, with a 10.59% increase over the last twelve months as of Q1 2024. This consistent growth may reassure investors about the company's ability to expand its business. Furthermore, the company's profitability over the last twelve months is reflected in a return on assets of 4.9%, which could be a sign of efficient management.
InvestingPro Tips highlight that while analysts have revised their earnings downwards for the upcoming period, they still predict the company will be profitable this year. Additionally, Accel's liquid assets exceed its short-term obligations, providing financial stability and the ability to cover immediate liabilities. These insights could be crucial for investors assessing the risk and potential of their investment following insider trading activities.
For those looking to delve deeper into Accel Entertainment's financials and performance metrics, InvestingPro offers additional tips that can provide a more comprehensive analysis. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With this offer, investors can access a total of 6 additional InvestingPro Tips to further inform their investment decisions.
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