Accel Leisure, Inc. (NYSE:ACEL) Insiders Have Been Promoting

We often see insiders buying stocks in companies that are doing well over the long term. On the flip side, it wouldn’t be worth mentioning that insider selling is known to precede tough times for a company. So we’re going to look to see if insiders bought or sold stocks of Accel Entertainment, Inc. ((NYSE: THAT).

What is insider selling?

It is perfectly legal for company insiders, including board members, to buy and sell shares in a company. However, most countries require the company to disclose such transactions to the market.

We would never suggest that investors base their decisions solely on what a company’s directors have done. But we would also consider it foolish to ignore insider trading altogether. For example a Harvard University study found that “insider buying generates unusual returns in excess of 6% per year”.

Check out our latest analysis for Accel Entertainment

The last 12 months of insider trading at Accel Entertainment

Co-founder Andrew Rubenstein made the biggest insider sale in the past 12 months. That single transaction involved shares valued at $ 867,000 priced at $ 9.63 each. This means that an insider was selling shares at a price slightly below the current price ($ 10.96). If an insider sells below the current price, it indicates that they consider that lower price to be fair. That makes us wonder what you think of the (higher) recent rating. Please note, however, that sellers can sell for a variety of reasons, so we do not know exactly what they think of the stock price. It’s worth noting that this sale was only 1.0% of Andrew Rubenstein’s stake.

Accel Entertainment insiders haven’t bought any shares in the past year. The following graph shows insider transactions (by companies and individuals) over the past year. If you want to know exactly who sold how much and when, just click on the graphic below!

NYSE: ACEL Insider Trading Volume March 21, 2021

If you are like me you will Not want to miss that free List of growing companies that insider buy.

Inside ownership of Accel Entertainment

Many investors enjoy checking out how much of a company is owned by insiders. A high level of insider responsibility often leads to corporate management taking greater account of the interests of shareholders. Accel Entertainment insiders own 23% of the company, currently valued at approximately $ 248 million based on the current share price. I like this level of insider ownership because it increases the chances that management will ponder the best interests of shareholders.

What does this data suggest about Accel Entertainment Insider?

The fact that there hasn’t been any insider trading by Accel Entertainment recently certainly doesn’t bother us. It is encouraging that insiders are abundant in stocks, but we would like more insider buying since Accel Entertainment’s final year of insider trading has not left us with confidence. While it is helpful to know what insiders are doing to buy or sell, it is also helpful to know the risks a particular company is facing. In performing our analysis, we found that Accel Entertainment did this 1 warning sign and it would be unwise to ignore it.

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

For the purposes of this article, insiders are persons who report their transactions to the competent supervisory authority. We currently consider open market transactions and private sales, but not derivative transactions.

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