Accel Entertainment (NYSE:ACEL) Rating Lowered to Sell at Zacks Investment Research

Accel Entertainment (NYSE:ACEL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday, Zacks.com reports.

According to Zacks, “Accel Entertainment Inc. is a distributed gaming operator primarily in the United States. The company’s business consists of the installation, maintenance and operation of VGTs, redemption devices which disburse winnings and contain ATM functionality, other amusement devices in authorized non-casino locations such as restaurants, bars, taverns, convenience stores, liquor stores, truck stops and grocery stores. Accel Entertainment Inc., formerly known as TPG Pace Holdings Corp., is based in Fort Worth, Texas. “

A number of other research analysts have also recently issued reports on the stock. Deutsche Bank Aktiengesellschaft lifted their target price on shares of Accel Entertainment from $12.00 to $13.00 and gave the company a “hold” rating in a research note on Monday, March 22nd. Macquarie started coverage on shares of Accel Entertainment in a research report on Monday, March 15th. They issued a “neutral” rating and a $13.00 price objective for the company. The Goldman Sachs Group raised their price target on shares of Accel Entertainment from $14.50 to $15.50 and gave the company a “buy” rating in a report on Tuesday, January 26th. Finally, JPMorgan Chase & Co. started coverage on Accel Entertainment in a research note on Wednesday, April 14th. They set an “overweight” rating and a $13.00 price target on the stock. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and three have given a buy rating to the company. The company currently has an average rating of “Hold” and an average price target of $13.58.

Shares of ACEL stock traded down $0.64 during mid-day trading on Tuesday, reaching $12.42. The company’s stock had a trading volume of 20,874 shares, compared to its average volume of 238,407. The firm’s 50-day moving average is $11.59 and its two-hundred day moving average is $10.73. The company has a market cap of $1.16 billion, a P/E ratio of -36.38 and a beta of 1.27. Accel Entertainment has a 1-year low of $7.14 and a 1-year high of $15.11. The company has a debt-to-equity ratio of 2.09, a quick ratio of 3.99 and a current ratio of 3.99.

Accel Entertainment (NYSE:ACEL) last issued its earnings results on Tuesday, March 16th. The company reported ($0.04) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of ($0.01) by ($0.03). Accel Entertainment had a negative return on equity of 5.46% and a negative net margin of 6.52%. The company had revenue of $74.41 million during the quarter, compared to analyst estimates of $70.60 million. Sell-side analysts anticipate that Accel Entertainment will post 0.11 EPS for the current year.

In other news, Director Gordon Rubenstein sold 10,000 shares of the company’s stock in a transaction on Thursday, March 18th. The stock was sold at an average price of $11.23, for a total transaction of $112,300.00. Following the completion of the sale, the director now directly owns 365,193 shares in the company, valued at approximately $4,101,117.39. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Andrew H. Rubenstein sold 25,000 shares of the stock in a transaction on Thursday, March 18th. The stock was sold at an average price of $11.12, for a total value of $278,000.00. Following the sale, the chief executive officer now directly owns 4,226,283 shares in the company, valued at $46,996,266.96. The disclosure for this sale can be found here. Over the last three months, insiders have sold 202,397 shares of company stock valued at $2,393,833. 19.51% of the stock is currently owned by insiders.

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Squarepoint Ops LLC acquired a new stake in shares of Accel Entertainment in the fourth quarter valued at about $111,000. ProShare Advisors LLC bought a new stake in Accel Entertainment during the 4th quarter valued at $113,000. Victory Capital Management Inc. acquired a new position in Accel Entertainment during the fourth quarter worth $115,000. Citigroup Inc. raised its holdings in Accel Entertainment by 374.2% during the fourth quarter. Citigroup Inc. now owns 12,254 shares of the company’s stock worth $124,000 after buying an additional 9,670 shares during the last quarter. Finally, Principal Financial Group Inc. bought a new position in shares of Accel Entertainment in the fourth quarter valued at $129,000. Hedge funds and other institutional investors own 47.59% of the company’s stock.

About Accel Entertainment

Accel Entertainment, Inc, together with its subsidiaries, operates as a distributed gaming operator in the United States. It is involved in the installation, maintenance, and operation of video game terminals; redemption devices that disburse winnings and contain automated teller machine (ATM) functionality; and other amusement devices in authorized non-casino locations, such as restaurants, bars, taverns, convenience stores, liquor stores, truck stops, and grocery stores.

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