Accel Entertainment CEO Sells Over $191K in Company Stock

Accel Entertainment, Inc. CEO and President Andrew H. Rubenstein has recently sold a substantial amount of his company stock, totaling over $191,000 across transactions made on September 18 and 19, as per the latest filings.

On September 18, Rubenstein sold 8,449 shares at a weighted average price of $12.0699, with sales prices varying between $12.00 and $12.16. The following day, he sold another 7,437 shares at a weighted average price of $12.0411, with prices ranging from $12.00 to $12.22. Despite these sales, Rubenstein retains a significant ownership stake, holding 4,180,399 shares directly.

These stock sales were conducted under a Rule 10b5-1 trading plan that Rubenstein established on March 15, 2024. This plan permits corporate insiders to sell a predetermined number of shares at set times, thereby providing legal protection against potential allegations of insider trading. At the time the plan was adopted, Rubenstein indicated he was not in possession of any material nonpublic information regarding Accel Entertainment.

Investors often track insider sales as these actions can offer insight into an executive’s perception of the company’s current worth or future potential. However, it is also common for executives to sell shares for reasons unrelated to their outlook on the company, such as portfolio diversification or meeting personal financial needs.

Accel Entertainment, based in Burr Ridge, Illinois, operates as a distributed gaming operator in the U.S., offering gaming solutions and amusement services. The company falls under the Services-Amusement & Recreation Services category and is incorporated in Delaware.

Recently, Accel Entertainment reported record second-quarter revenues of $309 million and an adjusted EBITDA of $50 million. The company is focusing on growth through mergers and acquisitions, including the upcoming acquisition of Fairmount Park, which comprises a master sports betting license along with a partnership with FanDuel. Additionally, Accel added nearly 50 new locations and achieved positive same-store sales growth in essential states.

With a robust liquidity position of $522 million, which includes $255 million in cash and $267 million in credit availability, the company is also implementing a $200 million share repurchase program. So far, Accel has repurchased 906,000 shares at an average price of $10.16, totaling $9 million. The anticipated closing of the Fairmount Park acquisition is expected in the fourth quarter of 2024, and it is projected that an increase in the Illinois gaming tax will be mitigated by the introduction of ticket-in, ticket-out technology, potentially increasing market revenue by 5-10%.

These developments reflect Accel Entertainment’s ongoing efforts to broaden its reach and enhance the player experience within the gaming industry.

As Andrew H. Rubenstein makes significant adjustments to his holdings, investors are eager to analyze the financial health and market performance of Accel Entertainment. The company’s market capitalization is estimated at approximately $989.14 million, with a Price to Earnings (P/E) ratio of 20.96, adjusted to 18.34 when considering the last twelve months as of the second quarter of 2024. This suggests that investors are optimistic about future growth prospects.

Moreover, Accel Entertainment’s liquid assets surpass its short-term obligations, alleviating some concerns over the company’s financial stability following the CEO’s stock sales. The company also operates with a moderate level of debt, which is vital for investors assessing their risk profile. Notably, Accel has seen a strong return of 19.18% over the last three months, indicating a positive trend in investor sentiment.

For those seeking further insights into Accel Entertainment’s financials and market performance, more detailed information is available regarding the company’s valuation, profitability expectations for the year, and its dividend policy, which currently does not offer payouts to shareholders.

This article was generated with AI assistance and reviewed by an editor.