In a recent transaction, Karl Peterson, a director at Accel Entertainment, Inc. (NYSE:ACEL), sold 10,000 shares of the company's stock at a price of $11.47 per share, totaling $114,700. This sale took place on March 19, 2024, and was disclosed in a filing with the Securities and Exchange Commission.
Accel Entertainment, which operates in the amusement and recreation services sector, has seen its shares being actively traded by insiders, indicating a continued interest in the company's stock performance. Peterson's sale was executed through a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a specific time. This plan was adopted on March 15, 2023, with Peterson affirming at that time that he was not in possession of any material nonpublic information about the company.
Alongside the sale of non-derivative securities, the filing also reported that Peterson was granted 26,979 restricted stock units (RSUs), which are contingent rights to receive shares of Accel Entertainment's Class A-1 Common Stock upon settlement, with no consideration needed. These RSUs are set to vest on December 31, 2024, given that Peterson continues his service with the company until that date.
The transactions by Peterson reflect a mix of both divestment and investment in the company's future, as the sale of current stock is balanced by the potential future ownership through the RSUs. After the sale, Peterson still holds a significant number of shares, amounting to 2,495,645 shares of Accel Entertainment's stock, indicating a sustained stake in the company's performance.
Investors and market watchers often look to insider transactions as a signal of confidence in the company's prospects. With this latest move by a key director at Accel Entertainment, stakeholders are provided with insights into insider perspectives on the company's value.
InvestingPro Insights
Accel Entertainment, Inc. (NYSE:ACEL) has recently caught the attention of investors with its robust performance metrics. As of the last twelve months ending Q4 2023, the company reported a revenue growth of 20.69%, underlining its expanding operations in the amusement and recreation services sector. This growth is complemented by a strong gross profit margin of 30.18%, which showcases the company's ability to manage its cost of goods sold effectively.
Furthermore, the stock has experienced a notable 15.25% price total return over the past three months, reflecting investor optimism and the company's momentum in the market. This positive trend is supported by the fact that Accel Entertainment is trading near its 52-week high, with the price at 96.6% of this peak. Such performance is indicative of the market's reception to the company's strategies and operational success.
InvestingPro Tips for Accel Entertainment highlight the company's liquid assets, which currently exceed short-term obligations, suggesting a solid financial position for meeting immediate liabilities. Additionally, the company operates with a moderate level of debt, which could provide it with the leverage needed to fuel further growth without overextending its financial commitments.
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