Accel Entertainment (NYSE:ACEL) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• EPS beat: Accel reported Q results of $0.17 EPS vs. a $0.16 consensus and revenue of $351.56M vs. $342.88M, with a return on equity of 27.49% and a net margin of 3.87%.
• Significant insider sales: Insiders have sold 864,247 shares worth $9.865M in the last 90 days (insiders still own 14.47% of the company), including recent sales by two directors.
• Market and analyst view: Shares traded up to $12.47 (market cap ~$1.02B, PE ~20.8) and Wall Street consensus is an average Buy rating with a mean target price of $14.67.

Accel Entertainment (NYSE:ACEL - Get Free Report) issued its quarterly earnings data on Tuesday. The company reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.01, FiscalAI reports. The business had revenue of $351.56 million during the quarter, compared to the consensus estimate of $342.88 million. Accel Entertainment had a return on equity of 27.49% and a net margin of 3.87%.

Accel Entertainment Price Performance

Shares of NYSE:ACEL traded up $0.26 on Tuesday, reaching $12.47. 252,952 shares of the company traded hands, compared to its average volume of 379,299. Accel Entertainment has a fifty-two week low of $9.55 and a fifty-two week high of $13.31. The company's 50 day moving average is $11.48 and its 200-day moving average is $11.06. The stock has a market capitalization of $1.02 billion, a PE ratio of 20.78 and a beta of 1.04. The company has a debt-to-equity ratio of 2.11, a current ratio of 2.61 and a quick ratio of 2.55.

Insider Activity

In other news, Director David W. Ruttenberg sold 10,000 shares of the stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $11.53, for a total transaction of $115,300.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Derek Harmer sold 20,000 shares of the business's stock in a transaction on Friday, March 13th. The shares were sold at an average price of $11.39, for a total transaction of $227,800.00. Following the sale, the insider directly owned 179,963 shares in the company, valued at approximately $2,049,778.57. This trade represents a 10.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 864,247 shares of company stock worth $9,865,047. Insiders own 14.47% of the company's stock.

Institutional Trading of Accel Entertainment

Several large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its stake in Accel Entertainment by 2.0% during the 3rd quarter. Vanguard Group Inc. now owns 3,896,993 shares of the company's stock valued at $43,140,000 after purchasing an additional 74,992 shares during the period. Invesco Ltd. raised its stake in Accel Entertainment by 5.7% during the 3rd quarter. Invesco Ltd. now owns 926,303 shares of the company's stock valued at $10,254,000 after purchasing an additional 50,305 shares during the period. Hotchkis & Wiley Capital Management LLC raised its stake in Accel Entertainment by 8.3% during the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 857,240 shares of the company's stock valued at $9,490,000 after purchasing an additional 65,610 shares during the period. Goldman Sachs Group Inc. raised its stake in Accel Entertainment by 177.3% during the 4th quarter. Goldman Sachs Group Inc. now owns 548,952 shares of the company's stock valued at $6,264,000 after purchasing an additional 351,012 shares during the period. Finally, Millennium Management LLC raised its stake in Accel Entertainment by 252.5% during the 1st quarter. Millennium Management LLC now owns 502,521 shares of the company's stock valued at $4,985,000 after purchasing an additional 359,948 shares during the period. 55.39% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research firms have weighed in on ACEL. Zacks Research upgraded Accel Entertainment from a "hold" rating to a "strong-buy" rating in a research report on Monday, April 20th. Citizens Jmp upped their target price on Accel Entertainment from $13.00 to $14.00 and gave the stock a "market outperform" rating in a research report on Wednesday, March 4th. Wall Street Zen downgraded Accel Entertainment from a "strong-buy" rating to a "buy" rating in a research report on Saturday. Truist Financial upped their target price on Accel Entertainment from $13.00 to $14.00 and gave the stock a "hold" rating in a research report on Wednesday, March 4th. Finally, Weiss Ratings upgraded Accel Entertainment from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, April 9th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Buy" and an average target price of $14.67.

Accel Entertainment Company Profile

Accel Entertainment, Inc is a Chicago-based gaming and entertainment company specializing in the provision of regulated electronic gaming terminals and related management services to licensed establishments across the United States. The company’s core offerings include video gaming terminals (VGTs), digital payment solutions, player loyalty programs and compliance support, all designed to enhance customer engagement and operational efficiency for bars, restaurants, truck stops and convenience stores.

Founded in 2005, Accel Entertainment has built a network that spans multiple states, including Illinois, Pennsylvania, Ohio, and Iowa.

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