Accel Entertainment (NYSE:ACEL) Shares Climb 13.2% on Better-Than-Expected Earnings

Accel Entertainment, Inc. (NYSE:ACEL)’s share price traded up 13.2% on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $13.37 and last traded at $13.42. 729,817 shares were traded during mid-day trading, an increase of 105% from the average daily volume of 356,777 shares. The stock had previously closed at $11.86.

The company reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.18 by $0.07. The company had revenue of $363.56 million during the quarter, compared to analysts’ expectations of $358.62 million. Accel Entertainment had a return on equity of 22.30% and a net margin of 4.08%.

Key Accel Entertainment News

Here are the key news stories impacting Accel Entertainment this week:

• Positive Sentiment: Q3 revenue reached a record $363.6 million, above estimates of about $358.6 million. Earnings were also ahead of forecasts: reported EPS was $0.25 versus estimates of $0.17–$0.18, while adjusted EPS was $0.22 against a $0.18 FactSet estimate. Accel Entertainment Q3 results
• Positive Sentiment: Net income increased 55% year over year and adjusted EBITDA rose 12%, adding to the positive earnings surprise. EPS was $0.25, compared with $0.24 a year earlier. Zacks Q3 earnings report
• Neutral Sentiment: The company released an earnings-call presentation and transcript, but the provided coverage does not include additional guidance or other details from those materials that would clarify the outlook. Q3 earnings-call transcript

Analysts Set New Price Targets

A number of research firms have weighed in on ACEL. Weiss Ratings restated a “buy (b-)” rating on shares of Accel Entertainment in a research report on Tuesday, September 22nd. Wall Street Zen upgraded Accel Entertainment from a “hold” rating to a “buy” rating in a research report on Saturday, October 24th. National Bank Financial set a $15.00 price objective on Accel Entertainment in a research note on Wednesday, August 5th. Truist Financial dropped their price objective on Accel Entertainment from $14.00 to $13.00 and set a “hold” rating on the stock in a research note on Tuesday, October 20th. Finally, Citizens Jmp increased their price target on Accel Entertainment from $14.00 to $15.00 and gave the company a “market outperform” rating in a research report on Wednesday, August 5th. Four analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $14.60.

Insider Activity

In other news, insider Derek Harmer sold 13,162 shares of the stock in a transaction on Monday, September 14th. The stock was sold at an average price of $11.60, for a total value of $152,679.20. Following the completion of the sale, the insider owned 157,767 shares in the company, valued at $1,830,097.20. This represents a 7.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders sold a total of 40,036 shares of company stock valued at $465,180 in the last ninety days. 14.47% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Accel Entertainment

Institutional investors and hedge funds have recently bought and sold shares of the business. Arrowstreet Capital Limited Partnership increased its holdings in shares of Accel Entertainment by 63.6% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,082,891 shares of the company’s stock valued at $11,814,000 after purchasing an additional 421,047 shares during the period. Globeflex Capital L P acquired a new stake in shares of Accel Entertainment during the second quarter worth approximately $3,894,000. Lazard Asset Management LLC grew its position in Accel Entertainment by 17.1% during the first quarter. Lazard Asset Management LLC now owns 298,515 shares of the company’s stock valued at $3,257,000 after purchasing an additional 43,663 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in Accel Entertainment in the 2nd quarter valued at approximately $2,643,000. Finally, First Trust Advisors LP increased its stake in Accel Entertainment by 43.0% in the 1st quarter. First Trust Advisors LP now owns 203,057 shares of the company’s stock valued at $2,215,000 after buying an additional 61,098 shares during the period. Hedge funds and other institutional investors own 55.39% of the company’s stock.

Accel Entertainment Trading Up 13.2%

The company has a current ratio of 2.47, a quick ratio of 2.40 and a debt-to-equity ratio of 1.91. The company has a market cap of $1.09 billion, a PE ratio of 20.02 and a beta of 1.09. The business’s 50-day simple moving average is $11.28 and its 200-day simple moving average is $11.70.

Accel Entertainment Company Profile

Accel Entertainment, Inc is a distributed gaming operator that provides regulated gaming services and equipment to non-casino businesses. The company places and operates gaming terminals in locations such as bars, restaurants, taverns, convenience stores, truck stops, and fraternal or veterans organizations, allowing these establishments to offer legal gaming without operating a traditional casino.

Accel manages the installation, maintenance, monitoring, and regulatory compliance of its gaming equipment.