David W. Ruttenberg, a director at Accel Entertainment, Inc. (NYSE:ACEL), has sold a total of shares worth over $135,000, according to the latest SEC filings. The transactions occurred over a span of three days, with the share prices ranging from $10.501 to $10.5164.
On July 23, 2024, Ruttenberg sold 1,000 shares at an average price of $10.501, followed by another 1,005 shares at $10.5011. The next day, he continued by offloading 1,494 shares and 1,427 shares at average prices of $10.502 and $10.5023, respectively. The selling spree concluded on July 25, with 3,925 shares sold at an average price of $10.5161 and an additional 3,995 shares at $10.5164.
The SEC filing included footnotes indicating that the sales were executed pursuant to a Rule 10b5-1 trading plan, which Ruttenberg had adopted on December 15, 2023. This plan allows company insiders to set up a predetermined schedule for buying or selling stocks at a time when they are not in possession of material non-public information. It's a common practice that provides a defense against allegations of insider trading.
The footnotes further detailed that the prices reported were weighted averages and that the shares were sold in multiple transactions within the specified price ranges. Ruttenberg has undertaken to provide full information regarding the number of shares sold at each separate price upon request.
While the SEC form lists these transactions under Ruttenberg's name, the shares were held by the Crilly Court Trust and Grant Place fund LLC, entities in which Ruttenberg holds a beneficial interest. He has disclaimed beneficial ownership of these securities, except to the extent of his pecuniary interest.
Investors often monitor insider buying and selling as it can provide insights into a company's internal perspective. However, it's important to note that there are various reasons why an insider might sell shares, and such transactions do not necessarily indicate a lack of confidence in the company's future prospects.
Accel Entertainment, Inc., headquartered in Burr Ridge, Illinois, operates within the amusement and recreation services sector and is incorporated in Delaware. The company's business address and the reporting owner's address are the same, indicating a close relationship between Ruttenberg and the company's operations.
In other recent news, Accel Entertainment has reported a steady growth in its Q1 2024 earnings. The company saw a year-over-year revenue increase of 2.9% to $302 million and a slight rise of 0.3% in adjusted EBITDA, reaching $46 million. This growth is attributed to Accel's expansion into new locations like Illinois and Nebraska, despite challenges such as negative same-store sales growth due to unfavorable weather conditions. The company also announced a $200 million share repurchase program, maintaining a strong balance sheet with $286 million in net debt and $553 million in liquidity.
Accel Entertainment is actively exploring further expansion opportunities across the country, with plans to penetrate multiple markets by the year-end. However, rising labor and material costs have led to a cautious approach towards signing on new locations. Despite these challenges, the company has been successful in outperforming competition in states such as Illinois, Montana, Nevada, and Georgia. These are the recent developments shaping the trajectory of Accel Entertainment.
InvestingPro Insights
Recent transactions by Accel Entertainment, Inc. (NYSE:ACEL) director David W. Ruttenberg have caught the eye of market watchers, as insider activity can often give a glimpse into the health and future direction of a company. To provide further context to these transactions, let's delve into some key financial metrics and analyst insights from InvestingPro.
With a solid market cap of $878.14 million, Accel Entertainment operates with a moderate level of debt, which is a positive signal for investors concerned with financial stability. This is supported by the fact that the company's liquid assets exceed its short-term obligations, according to the first of the InvestingPro Tips. Additionally, analysts predict that Accel will be profitable this year, aligning with the company's performance over the last twelve months.
Investors looking at valuation metrics will note that Accel Entertainment is trading at a Price / Book multiple of 4.34 as of Q1 2024, which is considered high, potentially signaling that the market has high expectations for the company's asset value or growth prospects. Moreover, the company's revenue growth of 10.59% over the last twelve months suggests a strong business trajectory.
However, it's worth mentioning that Accel Entertainment does not pay a dividend, which might be a consideration for income-focused investors. For those interested in a deeper dive into Accel's financial health and future prospects, InvestingPro offers a wealth of additional insights. There are 5 more InvestingPro Tips available for Accel Entertainment that can provide a comprehensive understanding of the company's financial position and performance. To explore these tips and more, investors can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.
Overall, the combination of Accel Entertainment's financial metrics and the insights provided by InvestingPro paint a detailed picture for investors considering this company in the amusement and recreation services sector.
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