Accel Entertainment, Inc. (NYSE:ACEL) CEO and President Andrew H. Rubenstein recently sold a significant portion of his company stock, totaling over $191,000. The transactions occurred on September 18 and 19, according to the latest filings.
Rubenstein sold 8,449 shares on September 18 at a weighted average price of $12.0699, with individual sales prices ranging from $12.00 to $12.16. The following day, he divested another 7,437 shares at a weighted average price of $12.0411, with sales prices ranging from $12.00 to $12.22. After these transactions, Rubenstein still holds a substantial amount of stock, owning 4,180,399 shares directly.
The sales were executed under a Rule 10b5-1 trading plan, which was adopted by Rubenstein on March 15, 2024. This plan allows corporate insiders to sell a predetermined number of shares at a predetermined time, providing a legal defense against potential accusations of insider trading. At the time of the plan's adoption, Rubenstein asserted that he was not in possession of any material nonpublic information regarding Accel Entertainment or its securities.
Investors often monitor insider sales as they may provide insights into an executive's view of the company's current valuation or future prospects. However, it is also common for executives to sell shares for reasons unrelated to their outlook on the company, such as diversifying their investment portfolio or meeting personal financial objectives.
Accel Entertainment, headquartered in Burr Ridge, Illinois, operates as a distributed gaming operator in the United States, providing gaming solutions and amusement services. The company has been listed under the Services-Amusement & Recreation Services category and is incorporated in Delaware.
In other recent news, Accel Entertainment reported record Q2 revenue of $309 million and an adjusted EBITDA of $50 million. The company is actively pursuing growth through mergers and acquisitions, with a notable development being the pending acquisition of Fairmount Park. This acquisition includes a master sports betting license and a partnership with FanDuel. Accel also added nearly 50 new locations and experienced positive same-store sales growth in key states.
The company maintains a strong liquidity position, with $522 million, including $255 million in cash and $267 million in credit availability. As part of its $200 million share repurchase program, Accel repurchased 906,000 shares at an average price of $10.16, totaling $9 million. The company expects the Fairmount Park acquisition to close in Q4 2024 and anticipates that the Illinois gaming tax increase will be offset by the introduction of ticket-in, ticket-out technology, potentially boosting market revenue by 5-10%.
These are the latest developments in Accel Entertainment's ongoing efforts to expand its footprint and enhance player experience in the gaming industry.
InvestingPro Insights
As the CEO of Accel Entertainment, Inc. (NYSE:ACEL) Andrew H. Rubenstein makes notable changes to his holdings, investors are keen to understand the financial health and market performance of the company. According to InvestingPro data, Accel Entertainment has a market capitalization of approximately $989.14 million, reflecting its standing in the market. The company is currently operating with a Price to Earnings (P/E) ratio of 20.96, which is adjusted to 18.34 when considering the last twelve months as of Q2 2024. This figure suggests investors are willing to pay a higher price for each dollar of ACEL's earnings, indicating expectations of future growth.
InvestingPro Tips suggest that Accel Entertainment's liquid assets exceed its short-term obligations, which may provide some reassurance to investors concerned about the company's financial stability following the CEO's stock sales. Moreover, the company operates with a moderate level of debt, which is a critical factor for investors to consider when assessing the risk profile of their investments. Additionally, the company has experienced a strong return over the last three months, with a 19.18% price total return, signaling a positive trend in investor sentiment.
For those interested in a deeper dive into Accel Entertainment's financials and market performance, there are additional InvestingPro Tips available at https://www.investing.com/pro/ACEL. These tips can provide investors with further insights into the company's valuation, profitability predictions for the year, and its dividend policy, which currently does not include payouts to shareholders.
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