Accel Entertainment Director Trades Company's Stock

It was reported on December 20, that David W Ruttenberg, Director at Accel Entertainment ACEL executed a significant insider sell, according to an SEC filing.

What Happened: After conducting a thorough analysis, Ruttenberg sold 20,000 shares of Accel Entertainment. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total transaction value is $200,482.

As of Wednesday morning, Accel Entertainment shares are down by 0.0%, currently priced at $10.29.

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.

Understanding the Numbers: Accel Entertainment's Finances

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. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Holistic Profitability Examination:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 30.15%, indicating potential difficulties in maintaining 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 0.12.

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

Market Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 21.0, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.78 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 7.51 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Illuminating the Importance of Insider Transactions

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Deciphering Transaction Codes in Insider Filings

When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes 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.