Accel Entertainment (NYSE:ACEL) Shares Gap Down - Should You Sell?

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 stock price gapped down prior to trading 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

ACEL has been the subject of several research reports. Macquarie restated an "outperform" rating and set a $16.00 price objective on shares of Accel Entertainment in a research note on Tuesday, May 6th. Northland Securities raised their target price on shares of Accel Entertainment to $15.00 and gave the stock a "buy" rating in a report on Thursday, May 1st.

Accel Entertainment Trading Down 0.5%

The company has a current ratio of 2.64, a quick ratio of 2.56 and a debt-to-equity ratio of 2.15. The firm has a market cap of $934.43 million, a price-to-earnings ratio of 27.60 and a beta of 1.32. The company has a fifty day moving average price of $11.90 and a 200-day moving average price of $11.30.

Insider Buying and Selling

In other news, Director Gordon Rubenstein sold 29,000 shares of the firm's stock in a transaction that occurred on Friday, June 6th. The shares were sold at an average price of $11.24, for a total transaction of $325,960.00. Following the sale, the director owned 14,117 shares of the company's stock, valued at $158,675.08. This trade represents a 67.26% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CAO Christen Kozlik sold 3,791 shares of the firm's stock in a transaction on Tuesday, June 10th. The shares were sold at an average price of $11.50, for a total transaction of $43,596.50. Following the sale, the chief accounting officer owned 4,534 shares in the company, valued at approximately $52,141. This represents a 45.54% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 143,674 shares of company stock valued at $1,649,158. Insiders own 18.33% of the company's stock.

Hedge Funds Weigh In On Accel Entertainment

A number of large investors have recently bought and sold shares of the business. Versant Capital Management Inc acquired a new stake in Accel Entertainment in the first quarter valued at approximately $35,000. Covestor Ltd lifted its position in shares of Accel Entertainment by 32.4% during the 4th quarter. Covestor Ltd now owns 4,294 shares of the company's stock valued at $46,000 after buying an additional 1,051 shares in the last quarter. Russell Investments Group Ltd. grew its stake in Accel Entertainment by 11,304.3% in the 4th quarter. Russell Investments Group Ltd. now owns 5,246 shares of the company's stock valued at $56,000 after acquiring an additional 5,200 shares during the period. CWM LLC increased its holdings in Accel Entertainment by 151.7% in the 2nd quarter. CWM LLC now owns 4,992 shares of the company's stock worth $59,000 after acquiring an additional 3,009 shares in the last quarter. Finally, Tower Research Capital LLC TRC increased its holdings in Accel Entertainment by 483.9% in the 4th quarter. Tower Research Capital LLC TRC now owns 7,422 shares of the company's stock worth $79,000 after acquiring an additional 6,151 shares in the last quarter. Institutional investors and hedge funds own 55.39% of the company's stock.

Accel Entertainment Company Profile

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.