Have Accel Entertainment Insiders Been Selling Stock?

We'd be surprised if Accel Entertainment, Inc. (NYSE:ACEL) shareholders haven't noticed that the Vice Chairman of the Board, Gordon Rubenstein, recently sold US$456k worth of stock at US$12.00 per share. However, the silver lining is that the sale only reduced their total holding by 1.6%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for Accel Entertainment

The Last 12 Months Of Insider Transactions At Accel Entertainment

In fact, the recent sale by Vice Chairman of the Board Gordon Rubenstein was not their only sale of Accel Entertainment shares this year. They previously made an even bigger sale of -US$1.4m worth of shares at a price of US$9.59 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$11.34. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 5.5% of Gordon Rubenstein's holding.

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

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Accel Entertainment

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Accel Entertainment insiders own about US$129m worth of shares (which is 13% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Accel Entertainment Tell Us?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But since Accel Entertainment is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Accel Entertainment. For example - Accel Entertainment has 2 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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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.