Andrew H. Rubenstein, CEO and President of Accel Entertainment, Inc. (NYSE:ACEL), recently sold shares of the company, according to a recent SEC filing. Over the course of three days, Rubenstein sold a total of 70,000 shares of Class A-1 Common Stock.
The transactions, executed between November 1 and November 5, 2024, were completed under a Rule 10b5-1 trading plan. This plan was adopted on March 15, 2024, ensuring that the trades were made without any material nonpublic information at the time of the plan's adoption.
Rubenstein's sales were conducted at prices ranging from $11.00 to $11.21 per share, resulting in a total transaction value of $775,426. Following these sales, Rubenstein retains ownership of 4,110,399 shares in the company.
In other recent news, Accel Entertainment has made significant strides in its growth strategy. The company recently announced the acquisition of a majority stake in two Louisiana-based gaming entities, Toucan Gaming, LLC and LSM Gaming, LLC, for $40 million. This deal is projected to generate approximately $25 million in revenue and $6 million in Adjusted EBITDA for the year 2025. Furthermore, Accel's third-quarter results for 2024 reported a revenue of $302 million and an adjusted EBITDA of $46 million, marking a year-over-year growth of 5.1% and 3.9% respectively.
Moving forward, Accel Entertainment is focusing on organic growth in Illinois, Nebraska, and Georgia, and exploring M&A opportunities in the $15 billion local gaming market. The company is also advancing with the Fairmont Park acquisition, which includes a sports betting license and plans for a casino. Accel's Q3 2024 revenue and adjusted EBITDA have increased by 5.1% and 3.9% year-over-year, respectively, demonstrating a solid performance in the face of a dynamic gaming industry landscape.
These recent developments underline Accel Entertainment's commitment to growth and shareholder returns, with management remaining optimistic about organic growth and M&A opportunities in the local gaming market.
InvestingPro Insights
As Accel Entertainment's CEO Andrew H. Rubenstein reduces his stake in the company, investors might be interested in additional context provided by InvestingPro data and tips.
Accel Entertainment currently has a market capitalization of $913.19 million, with a P/E ratio of 21.8. This valuation metric aligns with an InvestingPro Tip indicating that ACEL is "Trading at a high P/E ratio relative to near-term earnings growth." The company's PEG ratio of 4.8 further supports this observation, suggesting that the stock might be relatively expensive compared to its growth prospects.
On a positive note, Accel Entertainment has demonstrated revenue growth, with a 5.13% increase over the last twelve months, reaching $1.21 billion. The company's profitability is also noteworthy, as highlighted by another InvestingPro Tip: "Profitable over the last twelve months." This is reflected in the company's EBITDA of $176.6 million and a basic EPS of $0.51.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Accel Entertainment, providing a deeper understanding of the company's financial health and market position.
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