Accel Entertainment (NYSE:ACEL) Shares Gap Down - What's Next?

Key Points

• Accel Entertainment's share price declined from $12.39 to $11.45 before trading at $10.86, indicating a significant drop in value.
• Brokerages have increased their price targets, with Northland Securities setting a target of $15.00 and Macquarie establishing a target of $16.00.
• Insider selling activity was noted, with CAO Christen Kozlik and insider Derek Harmer selling significant shares of the company, reflecting a decrease in their ownership stakes.

Accel Entertainment, Inc. (NYSE:ACEL - Get Free Report)'s share price gapped down before the market opened on Wednesday . The stock had previously closed at $12.39, but opened at $11.45. Accel Entertainment shares last traded at $10.86, with a volume of 237,991 shares traded.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on ACEL. Northland Securities boosted their price target on shares of Accel Entertainment to $15.00 and gave the company a "buy" rating in a report on Thursday, May 1st. Macquarie reissued an "outperform" rating and issued a $16.00 target price on shares of Accel Entertainment in a research note on Tuesday, May 6th.

Accel Entertainment Stock Performance

The company has a market capitalization of $885.76 million, a price-to-earnings ratio of 21.38 and a beta of 1.32. The stock's 50 day moving average price is $11.92 and its 200 day moving average price is $11.31. The company has a current ratio of 2.42, a quick ratio of 2.35 and a debt-to-equity ratio of 2.11.

Insider Activity at Accel Entertainment

In other news, insider Derek Harmer sold 5,000 shares of Accel Entertainment stock in a transaction that occurred on Monday, June 23rd. The shares were sold at an average price of $11.50, for a total value of $57,500.00. Following the completion of the sale, the insider directly owned 202,880 shares in the company, valued at approximately $2,333,120. The trade was a 2.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Christen Kozlik sold 3,791 shares of the stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $11.50, for a total value of $43,596.50. Following the sale, the chief accounting officer directly owned 4,534 shares in the company, valued at $52,141. This represents a 45.54% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 143,674 shares of company stock worth $1,649,158. 18.33% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Accel Entertainment

Several hedge funds and other institutional investors have recently modified their holdings of ACEL. AdvisorShares Investments LLC grew its stake in shares of Accel Entertainment by 3.3% during the second quarter. AdvisorShares Investments LLC now owns 30,942 shares of the company's stock worth $364,000 after buying an additional 1,000 shares during the last quarter. Y Intercept Hong Kong Ltd bought a new stake in shares of Accel Entertainment during the second quarter worth about $426,000. R Squared Ltd increased its stake in shares of Accel Entertainment by 17.8% in the second quarter. R Squared Ltd now owns 16,842 shares of the company's stock valued at $198,000 after buying an additional 2,542 shares during the period. CWM LLC raised its holdings in Accel Entertainment by 151.7% in the 2nd quarter. CWM LLC now owns 4,992 shares of the company's stock valued at $59,000 after buying an additional 3,009 shares during the last quarter. Finally, Counterpoint Mutual Funds LLC bought a new stake in Accel Entertainment during the 2nd quarter worth approximately $403,000. Institutional investors own 55.39% of the company's stock.

About Accel Entertainment

Accel Entertainment, Inc, together with its subsidiaries, operates as a distributed gaming operator in the United States. It is involved in the installation, maintenance, and operation of gaming terminals; redemption devices that disburse winnings and contain automated teller machine (ATM) functionality; and other amusement devices in authorized non-casino locations, such as restaurants, bars, taverns, convenience stores, liquor stores, truck stops, and grocery stores.

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