Don't Ignore The Insider Selling In Accel Entertainment

Anyone interested in Accel Entertainment, Inc. (NYSE:ACEL) should probably be aware that the Independent Director, David Ruttenberg, recently divested US$140k worth of shares in the company, at an average price of US$11.19 each. However, the silver lining is that the sale only reduced their total holding by 1.4%, so we're hesitant to read anything much into it, on its own.

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Accel Entertainment Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Vice Chairman of the Board & Co-Founder, Gordon Rubenstein, for US$613k worth of shares, at about US$11.24 per share. So what is clear is that an insider saw fit to sell at around the current price of US$11.08. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Accel Entertainment insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Accel Entertainment

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Insider Ownership Of Accel Entertainment

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 10% of Accel Entertainment shares, worth about US$94m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Accel Entertainment Tell Us?

An insider sold Accel Entertainment shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Accel Entertainment is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 2 warning signs for Accel Entertainment that deserve your attention before buying any shares.

But note: Accel Entertainment may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.