Director At Accel Entertainment Sells $330K Of Stock

Making a noteworthy insider sell on March 4, Karl Peterson, Director at Accel Entertainment ACEL, is reported in the latest SEC filing.

What Happened: Peterson's decision to sell 30,000 shares of Accel Entertainment was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $330,000.

The latest update on Monday morning shows Accel Entertainment shares down by 0.0%, trading at $11.49.

Unveiling the Story Behind Accel Entertainment

Accel Entertainment Inc is a distributed gaming operator in the United States. It is engaged in the installation, maintenance, and operation of video gaming terminals. The company offers products to restaurants, bars, taverns, convenience stores, liquor stores, truck stops, and grocery stores. It operates slot machines and amusement equipment. The company generates a majority of its revenue from net gaming. Net gaming revenue represents net cash received from gaming activities, which is the difference between gaming wins and losses. Net gaming revenue includes the amount earned by location partners and is recognized at the time of gaming play.

Financial Insights: Accel Entertainment

Revenue Growth: Over the 3 months period, Accel Entertainment showcased positive performance, achieving a revenue growth rate of 3.33% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Evaluating Earnings Performance:

• Gross Margin: With a low gross margin of 30.33%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Accel Entertainment's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.19.

Debt Management: Accel Entertainment's debt-to-equity ratio is below the industry average at 2.73, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: Accel Entertainment's P/E ratio of 21.68 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.85 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 7.9 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Understanding the Significance of Insider Transactions

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Cracking Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely 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.

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