Derek Harmer Exercises Options, Realizes $81K

On December 7, it was revealed in an SEC filing that Derek Harmer, Secretary at Accel Entertainment ACEL executed a significant exercise of company stock options.

What Happened: Harmer, Secretary at Accel Entertainment, exercised stock options for 13,750 shares of ACEL stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The exercise price of the options was $4.07 per share.

Currently, Accel Entertainment shares are trading down 0.0%, priced at $9.99 during Friday's morning. This values Harmer's 13,750 shares at $81,400.

Get to Know Accel Entertainment Better

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 amounts earned by location partners and is recognized at the time of gaming play.

Accel Entertainment: Delving into Financials

Revenue Growth: Accel Entertainment's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 7.69%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Insights into Profitability:

• Gross Margin: The company shows a low gross margin of 30.15%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Accel Entertainment's EPS is below the industry average. The company faced challenges with a current EPS of 0.12. This suggests a potential decline in earnings.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 2.58.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 20.39 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.76 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): Accel Entertainment's EV/EBITDA ratio at 7.35 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Navigating the Impact of Insider Transactions on Investments

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

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.

Transaction Codes Worth Your Attention

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates 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.