Accel Entertainment (NYSE:ACEL) Stock Price Up 13.2% on Better-Than-Expected Earnings

Key Points

• Accel Entertainment shares jumped 13.2% after quarterly results beat expectations, trading around $13.42 on volume more than double its average.
• Quarterly revenue reached a record $363.56 million, topping forecasts of $358.62 million, while EPS of $0.25 beat estimates of $0.18. Net income rose 55% year over year.
• Analysts’ consensus rating is Moderate Buy, with an average price target of $14.60.

Shares of Accel Entertainment, Inc. (NYSE:ACEL - Get Free Report) shot up 13.2% on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $13.37 and last traded at $13.42. 729,817 shares were traded during mid-day trading, an increase of 105% from the average daily volume of 356,777 shares. The stock had previously closed at $11.86.

The company reported $0.25 earnings per share for the quarter, beating analysts' consensus estimates of $0.18 by $0.07. The business had revenue of $363.56 million during the quarter, compared to analysts' expectations of $358.62 million. Accel Entertainment had a return on equity of 22.30% and a net margin of 4.08%.

More Accel Entertainment News

Here are the key news stories impacting Accel Entertainment this week:

• Positive Sentiment: Q3 revenue reached a record $363.6 million, above estimates of about $358.6 million. Earnings were also ahead of forecasts: reported EPS was $0.25 versus estimates of $0.17–$0.18, while adjusted EPS was $0.22 against a $0.18 FactSet estimate. Accel Entertainment Q3 results
• Positive Sentiment: Net income increased 55% year over year and adjusted EBITDA rose 12%, adding to the positive earnings surprise. EPS was $0.25, compared with $0.24 a year earlier. Zacks Q3 earnings report
• Neutral Sentiment: The company released an earnings-call presentation and transcript, but the provided coverage does not include additional guidance or other details from those materials that would clarify the outlook. Q3 earnings-call transcript

Analysts Set New Price Targets

Several equities analysts recently weighed in on the company. National Bank Financial set a $15.00 target price on Accel Entertainment in a research report on Wednesday, August 5th. Wells Fargo & Company began coverage on Accel Entertainment in a report on Friday, August 21st. They issued an "equal weight" rating and a $14.00 price objective on the stock. Citigroup restated a "market outperform" rating on shares of Accel Entertainment in a report on Wednesday, August 5th. Wall Street Zen raised shares of Accel Entertainment from a "hold" rating to a "buy" rating in a research report on Saturday, October 24th. Finally, Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Accel Entertainment in a research report on Tuesday, September 22nd. Four research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $14.60.

Insider Buying and Selling at Accel Entertainment

In related news, insider Derek Harmer sold 13,162 shares of the company's stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $11.60, for a total transaction of $152,679.20. Following the sale, the insider directly owned 157,767 shares of the company's stock, valued at approximately $1,830,097.20. This represents a 7.70% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In the last ninety days, insiders sold 40,036 shares of company stock valued at $465,180. 14.47% of the stock is currently owned by insiders.

Institutional Trading of Accel Entertainment

Several institutional investors have recently added to or reduced their stakes in the business. Arrowstreet Capital Limited Partnership grew its holdings in shares of Accel Entertainment by 63.6% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,082,891 shares of the company's stock valued at $11,814,000 after purchasing an additional 421,047 shares during the last quarter. Globeflex Capital L P bought a new stake in shares of Accel Entertainment in the 2nd quarter worth approximately $3,894,000. Lazard Asset Management LLC lifted its holdings in shares of Accel Entertainment by 17.1% in the 1st quarter. Lazard Asset Management LLC now owns 298,515 shares of the company's stock worth $3,257,000 after purchasing an additional 43,663 shares during the last quarter. Bank of New York Mellon Corp acquired a new position in Accel Entertainment during the 2nd quarter valued at approximately $2,643,000. Finally, First Trust Advisors LP boosted its position in Accel Entertainment by 43.0% during the 1st quarter. First Trust Advisors LP now owns 203,057 shares of the company's stock valued at $2,215,000 after purchasing an additional 61,098 shares during the period. Institutional investors own 55.39% of the company's stock.

Accel Entertainment Stock Up 13.2%

The firm has a market cap of $1.09 billion, a price-to-earnings ratio of 20.02 and a beta of 1.09. The stock has a 50-day moving average of $11.28 and a 200-day moving average of $11.70. The company has a current ratio of 2.47, a quick ratio of 2.40 and a debt-to-equity ratio of 1.91.

About Accel Entertainment

Accel Entertainment, Inc is a distributed gaming operator that provides regulated gaming services and equipment to non-casino businesses. The company places and operates gaming terminals in locations such as bars, restaurants, taverns, convenience stores, truck stops, and fraternal or veterans organizations, allowing these establishments to offer legal gaming without operating a traditional casino.

Accel manages the installation, maintenance, monitoring, and regulatory compliance of its gaming equipment.

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