David W. Ruttenberg, a director at Accel Entertainment, Inc. (NYSE:ACEL), reported the sale of 25,000 shares of the company's Class A-1 Common Stock. The shares were sold on October 15, at prices ranging from $11.5881 to $11.5884 per share, totaling approximately $289,706.
The transactions were executed under a Rule 10b5-1 trading plan, which Ruttenberg adopted in December 2023. Following these sales, Ruttenberg holds 385,635 shares indirectly through the Crilly Court Trust and 525,526 shares through Grant Place Fund LLC. The director has disclaimed beneficial ownership of these securities, except for his pecuniary interest.
In other recent news, Accel Entertainment reported a record-breaking Q2 revenue of $309 million and an adjusted EBITDA of $50 million. The company's significant progress in its expansion and acquisition strategy was underscored by the pending acquisition of Fairmount Park, which includes a master sports betting license and a FanDuel partnership. Nearly 50 new locations were added to Accel's portfolio, contributing to positive same-store sales growth in key states.
Accel Entertainment's growth strategy is also evident in its aggressive pursuit of mergers and acquisitions, backed by a strong liquidity position of $522 million. The company has repurchased 906,000 shares, totaling $9 million, as part of its $200 million share repurchase program.
The acquisition of Fairmount Park is expected to close in Q4 2024, according to company projections. The company also anticipates potential market revenue growth of 5-10% in Illinois, thanks to the introduction of ticket-in, ticket-out (TITO) technology. The company's leadership team, including Andy Rubenstein and Mark Phelan, remains optimistic about growth opportunities and the company's financial position. These are among the recent developments in Accel Entertainment's ongoing market strategy.
InvestingPro Insights
Accel Entertainment's recent insider transaction occurs against a backdrop of solid financial performance. According to InvestingPro data, the company boasts a market capitalization of $956.08 million and has demonstrated profitability over the last twelve months, with a P/E ratio of 20.21. This valuation metric suggests investors are willing to pay a premium for the company's earnings, potentially reflecting confidence in its future growth prospects.
InvestingPro Tips highlight that Accel operates with a moderate level of debt and maintains liquid assets that exceed short-term obligations. These factors contribute to the company's financial stability, which may be reassuring to investors in light of the director's stock sale.
The company's revenue growth of 5.74% over the last twelve months indicates a steady expansion of its business. This growth, coupled with a gross profit margin of 30.21%, suggests Accel Entertainment is effectively managing its costs while increasing its top line.
It's worth noting that while the director has sold shares, the stock is trading at 91.75% of its 52-week high, implying relatively strong market performance. Additionally, analysts predict the company will remain profitable this year, which aligns with the positive financial metrics observed.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for Accel Entertainment, providing deeper insights into the company's financial health and market position.
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