Accel Entertainment (NYSE:ACEL) Trading Down 9.1% - What's Next?

Key Points

• Shares tumbled 9.1% to $11.34 on Wednesday with 204,154 shares traded (a ~46% drop from average volume) after closing at $12.47 the prior session.
• Quarterly results beat consensus—$0.17 EPS vs. $0.16 expected and $351.6M revenue vs. $342.9M—and the stock trades at a market cap of roughly $926.6M and a P/E of about 18.9.
• Analysts lean positive (consensus "Buy" with an average target of $14.67 after recent upgrades), but significant insider selling — ~864,247 shares (~$9.9M) in the last 90 days — may weigh on sentiment.

Accel Entertainment, Inc. (NYSE:ACEL - Get Free Report) shares fell 9.1% during trading on Wednesday . The stock traded as low as $11.16 and last traded at $11.34. 204,154 shares were traded during mid-day trading, a decline of 46% from the average session volume of 376,938 shares. The stock had previously closed at $12.47.

Analysts Set New Price Targets

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

Accel Entertainment Stock Down 8.9%

The firm's 50-day simple moving average is $11.50 and its 200 day simple moving average is $11.07. The company has a debt-to-equity ratio of 2.11, a quick ratio of 2.55 and a current ratio of 2.61. The stock has a market capitalization of $926.55 million, a P/E ratio of 18.93 and a beta of 1.04.

Accel Entertainment (NYSE:ACEL - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $0.17 EPS for the quarter, topping the consensus estimate of $0.16 by $0.01. Accel Entertainment had a net margin of 3.87% and a return on equity of 27.49%. The firm had revenue of $351.56 million for the quarter, compared to analysts' expectations of $342.88 million. As a group, research analysts expect that Accel Entertainment, Inc. will post 0.69 EPS for the current year.

Insider Transactions at Accel Entertainment

In other news, insider Derek Harmer sold 20,000 shares of the company's stock in a transaction dated Friday, March 13th. The shares were sold at an average price of $11.39, for a total value of $227,800.00. Following the sale, the insider directly owned 179,963 shares of the company's stock, valued at approximately $2,049,778.57. This represents a 10.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Gordon Rubenstein sold 172,943 shares of the firm's stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $11.37, for a total transaction of $1,966,361.91. Following the completion of the sale, the director owned 22,674 shares of the company's stock, valued at $257,803.38. This trade represents a 88.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 864,247 shares of company stock worth $9,865,047 in the last 90 days. Corporate insiders own 14.47% of the company's stock.

Institutional Investors Weigh In On Accel Entertainment

Several hedge funds have recently bought and sold shares of the company. CIBC Bancorp USA Inc. bought a new stake in Accel Entertainment in the 3rd quarter valued at $4,368,000. Millennium Management LLC lifted its holdings 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 last quarter. Goldman Sachs Group Inc. lifted its holdings 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 last quarter. Visualize Group LP acquired a new stake in Accel Entertainment during the 3rd quarter valued at $2,280,000. Finally, Arrowstreet Capital Limited Partnership lifted its holdings in Accel Entertainment by 60.6% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 391,350 shares of the company's stock valued at $4,606,000 after purchasing an additional 147,653 shares during the last quarter. 55.39% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.