David W. Ruttenberg, a director at Accel Entertainment, Inc. (NYSE:ACEL), sold 70,000 shares of the company's Class A-1 Common Stock on November 8, according to a recent SEC filing. The shares were sold at an average price of $11.7275, amounting to a total transaction value of approximately $820,924. Following this transaction, Ruttenberg holds 277,455 shares indirectly through the David W. Ruttenberg Revocable Trust. The sales were executed over multiple transactions with prices ranging from $11.6069 to $11.8239 per share. Ruttenberg disclaims beneficial ownership of the securities except to the extent of his pecuniary interest.
In other recent news, Accel Entertainment has completed the acquisition of a majority stake in two Louisiana-based gaming entities, Toucan Gaming, LLC and LSM Gaming, LLC. The $40 million transaction grants Accel ownership of 85% of both companies. The deal is expected to generate approximately $25 million in revenue and $6 million in Adjusted EBITDA for the year 2025.
Accel Entertainment reported a steady increase in its third-quarter results for 2024, with a revenue of $302 million and an adjusted EBITDA of $46 million. This represents a year-over-year growth of 5.1% and 3.9% respectively. The gaming company's growth has been attributed to strategic moves in Illinois, its largest market, and expansion into new markets including Nebraska, along with the upcoming acquisition of Fairmont Park.
The company is also focusing on organic growth in Illinois, Nebraska, and Georgia, and exploring M&A opportunities in the $15 billion local gaming market. These recent developments underline Accel Entertainment's commitment to growth and shareholder returns.
InvestingPro Insights
To provide additional context to David W. Ruttenberg's recent stock sale, let's examine some key financial metrics for Accel Entertainment (NYSE:ACEL) from InvestingPro.
As of the latest data, Accel Entertainment has a market capitalization of $978.24 million. The company's P/E ratio stands at 23.29, which is relatively high compared to its near-term earnings growth, as indicated by one of the InvestingPro Tips. This valuation metric might offer some insight into why a director chose to sell shares at this time.
Interestingly, despite the high P/E ratio, Accel Entertainment has shown positive revenue growth. The company's revenue for the last twelve months as of Q3 2023 was $1.21 billion, with a growth rate of 5.13%. This growth trend is also reflected in the company's EBITDA, which grew by 5.54% over the same period, reaching $176.6 million.
An InvestingPro Tip highlights that Accel Entertainment operates with a moderate level of debt. This financial stability is further supported by another tip indicating that the company's liquid assets exceed its short-term obligations, suggesting a healthy balance sheet.
For investors considering Accel Entertainment, it's worth noting that analysts predict the company will be profitable this year, according to another InvestingPro Tip. This positive outlook is consistent with the company's reported profitability over the last twelve months.
It's important to mention that InvestingPro offers additional insights beyond what we've discussed here. In fact, there are 8 more InvestingPro Tips available for Accel Entertainment, which could provide a more comprehensive view of the company's financial health and market position.
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