Board Member At Accel Entertainment Sells $277K Of Stock

David W Ruttenberg, Board Member at Accel Entertainment ACEL, executed a substantial insider sell on April 17, according to an SEC filing.

What Happened: After conducting a thorough analysis, Ruttenberg sold 25,000 shares of Accel Entertainment. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total transaction value is $277,047.

Tracking the Thursday’s morning session, Accel Entertainment shares are trading at $11.2, showing a down of 0.0%.

Delving into Accel Entertainment’s Background

Accel Entertainment Inc is a distributed gaming and local entertainment operator in the United States. It is engaged in the installation, maintenance, operation, and servicing of gaming terminals and related equipment, redemption devices that disburse winnings and contain automated teller machine (ATM) functionality, and amusement devices in authorized non-casino locations such as restaurants, bars, taverns, convenience stores, liquor stores, truck stops, and grocery stores. The Company also operates stand-alone ATMs in gaming and non-gaming locations. It generates revenue from Net gaming, Amusement, Manufacturing, ATM fees, and others.

Financial Milestones: Accel Entertainment’s Journey

Positive Revenue Trend: Examining Accel Entertainment’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.88% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Navigating Financial Profits:

• Gross Margin: The company shows a low gross margin of 30.44%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Accel Entertainment exhibits below-average bottom-line performance with a current EPS of 0.1.

Debt Management: Accel Entertainment’s debt-to-equity ratio is below the industry average. With a ratio of 2.33, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The P/E ratio of 27.32 is lower than the industry average, implying a discounted valuation for Accel Entertainment’s stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.77 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Accel Entertainment’s EV/EBITDA ratio at 8.15 suggests potential undervaluation, falling below industry averages.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Navigating the Impact of Insider Transactions on Investments

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

In the context of legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

The Insider’s Guide to Important Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Accel Entertainment’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.