Accel Entertainment (NYSE:ACEL) Shares Down 2.8% - Here's Why

Key Points

• Accel Entertainment shares fell 2.8% to $11.76 in unusually light trading, with volume down 93% from the average session.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $14.80, despite one recent downgrade to “Hold.”
• The company beat revenue expectations in its latest quarter but missed on earnings, reporting $0.15 EPS versus the $0.19 consensus estimate; two insiders also sold shares under pre-arranged trading plans.

Accel Entertainment, Inc. (NYSE:ACEL - Get Free Report) shares traded down 2.8% on Friday . The stock traded as low as $11.76 and last traded at $11.76. Approximately 24,978 shares were traded during trading, a decline of 93% from the average session volume of 345,504 shares. The stock had previously closed at $12.10.

Analyst Ratings Changes

Several equities analysts have recently commented on the company. Citizens Jmp upped their target price on Accel Entertainment from $14.00 to $15.00 and gave the company a "market outperform" rating in a report on Wednesday, August 5th. Wells Fargo & Company started coverage on Accel Entertainment in a research report on Friday. They set an "equal weight" rating and a $14.00 price objective for the company. Zacks Research downgraded Accel Entertainment from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 22nd. Citigroup reiterated a "market outperform" rating on shares of Accel Entertainment in a research note on Wednesday, August 5th. Finally, Truist Financial set a $14.00 price target on shares of Accel Entertainment in a report on Wednesday. Four equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $14.80.

Accel Entertainment Price Performance

The company has a debt-to-equity ratio of 1.91, a quick ratio of 2.40 and a current ratio of 2.47. The firm has a market capitalization of $966.20 million, a P/E ratio of 17.76 and a beta of 1.02. The business has a fifty day moving average of $12.47 and a 200-day moving average of $11.88.

Accel Entertainment (NYSE:ACEL - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $0.15 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.19 by ($0.04). Accel Entertainment had a return on equity of 22.30% and a net margin of 4.08%.The business had revenue of $368.13 million for the quarter, compared to analyst estimates of $356.66 million. On average, sell-side analysts forecast that Accel Entertainment, Inc. will post 0.7 EPS for the current fiscal year.

Insider Transactions at Accel Entertainment

In other news, COO Mark T. Phelan sold 25,000 shares of the company's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $13.00, for a total value of $325,000.00. Following the completion of the sale, the chief operating officer directly owned 241,464 shares of the company's stock, valued at approximately $3,139,032. This represents a 9.38% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Derek Harmer sold 20,000 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $13.00, for a total transaction of $260,000.00. Following the completion of the transaction, the insider owned 187,827 shares of the company's stock, valued at $2,441,751. This trade represents a 9.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 14.47% of the company's stock.

Hedge Funds Weigh In On Accel Entertainment

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Arrowstreet Capital Limited Partnership raised its holdings in shares of Accel Entertainment by 63.6% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,082,891 shares of the company's stock worth $11,814,000 after purchasing an additional 421,047 shares in the last quarter. CIBC Bancorp USA Inc. bought a new position in shares of Accel Entertainment in the third quarter valued at $4,368,000. Millennium Management LLC boosted its stake in shares of Accel Entertainment by 252.5% during the 1st quarter. Millennium Management LLC now owns 502,521 shares of the company's stock worth $4,985,000 after acquiring an additional 359,948 shares in the last quarter. Goldman Sachs Group Inc. grew its holdings in shares of Accel Entertainment by 177.3% in the 4th quarter. Goldman Sachs Group Inc. now owns 548,952 shares of the company's stock worth $6,264,000 after acquiring an additional 351,012 shares during the last quarter. Finally, Globeflex Capital L P acquired a new stake in shares of Accel Entertainment during the second quarter worth $3,894,000. 55.39% of the stock is owned by institutional investors.

About Accel Entertainment

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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