We wouldn't blame Accel Entertainment, Inc. (NYSE:ACEL) shareholders if they were a little worried about the fact that Gordon Rubenstein, the Vice Chairman of the Board & Co-Founder recently netted about US$613k selling shares at an average price of US$11.17. However, that sale only accounted for 4.2% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At Accel Entertainment
In the last twelve months, the biggest single sale by an insider was when the Independent Director, David Ruttenberg, sold US$821k worth of shares at a price of US$11.73 per share. So what is clear is that an insider saw fit to sell at around the current price of US$11.66. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Insiders in Accel Entertainment didn't buy any shares in 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
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Accel Entertainment
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Accel Entertainment insiders own about US$112m worth of shares (which is 12% 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.
So What Do The Accel Entertainment Insider Transactions Indicate?
Insiders haven't bought Accel Entertainment stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. 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. In terms of investment risks, we've identified 1 warning sign with Accel Entertainment and understanding this should be part of your investment process.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.