Accel Entertainment, Inc. (NYSE:ACEL) Secretary Derek Harmer engaged in multiple transactions involving the company's stock, according to a recent SEC filing. On March 15, Harmer sold 10,000 shares of Class A-1 Common Stock at a price of $11.21 per share, totaling $112,100. The shares were sold under a Rule 10b5-1 trading plan, which was adopted on December 15, 2023.
In addition to the sale, Harmer also reported several transactions that involved acquiring shares at no cost and disposing of shares to cover tax liabilities. The transactions for covering tax liabilities, known as "F" transactions, amounted to a total of $35,330, with share prices ranging between $11.28 and $11.34.
It is important for investors to note that these transactions do not necessarily indicate a lack of confidence in the company by the executive. Sales of stock by executives can be motivated by various personal financial considerations and are often planned in advance through mechanisms like the 10b5-1 trading plan.
Accel Entertainment, with its headquarters in Burr Ridge, Illinois, operates within the amusement and recreation services industry and is incorporated in Delaware. The company, formerly known as TPG Pace Holdings Corp., has a fiscal year ending on December 31.
The SEC filing also included information on derivative securities, specifically restricted stock units (RSUs), which represent the right to receive shares of the issuer's Class A-1 Common Stock upon settlement. However, the filing indicates that Harmer did not engage in any sales of these derivative securities during the reported period.
Investors and analysts often scrutinize insider transactions as they can provide insights into an executive's view of the company's future prospects. However, the context of these transactions, including tax obligations and pre-arranged trading plans, should be taken into account when assessing their significance.
For those interested in the detailed transactions and holdings of Accel Entertainment executives, the SEC Form 4 filings are publicly available and provide a full disclosure of insider trading activities.
InvestingPro Insights
Accel Entertainment (NYSE:ACEL), a key player in the amusement and recreation industry, has been performing robustly in the financial markets. With a market capitalization of approximately $962.9 million, the company has demonstrated a commendable revenue growth of 20.69% in the last twelve months as of Q4 2023. This growth is reflected in its stock price, which has seen an impressive 1 Year Price Total Return of 32.11%. The company's stock price movements have been quite volatile, as indicated by an InvestingPro Tip, which may interest investors looking for dynamic trading opportunities.
InvestingPro Data also reveals that Accel Entertainment is trading at a high Price/Book multiple of 4.85 as of Q4 2023, which could suggest that the market is expecting future growth or that the stock is currently overvalued. This aligns with another InvestingPro Tip highlighting that analysts predict the company will be profitable this year. Additionally, the company's liquid assets exceed its short-term obligations, indicating a healthy liquidity position that could reassure investors of its ability to meet short-term liabilities.
For those looking to delve deeper into the financial health and future prospects of Accel Entertainment, there are additional insights available. InvestingPro offers more tips, including an analysis of the company's moderate level of debt and its decision not to pay dividends to shareholders. To access these valuable insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With a total of 7 InvestingPro Tips available, investors can make more informed decisions regarding their investments in Accel Entertainment.
As Accel Entertainment continues to navigate the competitive landscape of the amusement and recreation services industry, keeping a close eye on insider transactions and real-time financial data can provide investors with a clearer picture of where the company stands and where it may be headed in the future.
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