Insider Selling: Gordon Rubenstein Unloads $325K Of Accel Entertainment Stock

Making a noteworthy insider sell on June 10, Gordon Rubenstein, Director at Accel Entertainment ACEL, is reported in the latest SEC filing.

What Happened: Rubenstein opted to sell 29,000 shares of Accel Entertainment, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction's total worth stands at $325,968.

Accel Entertainment shares are trading down 0.0% at $11.66 at the time of this writing on Wednesday morning.

Get to Know Accel Entertainment Better

Accel Entertainment Inc is a distributed gaming and local entertainment operator in the United States. It is engaged in the installation, maintenance, operation, and servicing of gaming terminals and related equipment, redemption devices that disburse winnings and contain automated teller machine (ATM) functionality, and amusement devices in authorized non-casino locations such as restaurants, bars, taverns, convenience stores, liquor stores, truck stops, and grocery stores. The Company also operates stand-alone ATMs in gaming and non-gaming locations. It generates revenue from Net gaming, Amusement, Manufacturing, ATM fees, and others.

Accel Entertainment: Financial Performance Dissected

Positive Revenue Trend: Examining Accel Entertainment's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.32% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Interpreting Earnings Metrics:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 30.99%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Accel Entertainment's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.17.

Debt Management: Accel Entertainment's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 2.24.

Financial Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 23.8, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.8 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 7.79, Accel Entertainment's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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The Relevance of Insider Transactions

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

A Deep Dive into Insider Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Accel Entertainment's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.