In a recent transaction on June 21, Aimee Katz, a significant shareholder of Zurn Elkay Water Solutions Corp (NYSE:ZWS), sold a total of 8,629 shares of the company's common stock. The sale was at an average price of $30.40 per share, amounting to a total value of approximately $262,321.
The price reported for these shares represents a weighted average, with individual sales occurring at prices ranging from $30.40 to $30.42. The transactions were executed in multiple tranches within this tight price range, reflecting a consistent market value for Zurn Elkay Water Solutions Corp's stock on the day of the sale.
Following the transaction, Katz's ownership in the company is adjusted to reflect a direct interest in 23,674,164 shares. It is important to note that the shares are held through various entities with Katz having a beneficial interest. Specifically, shares are directly held by Ice Mountain LLC, Katz New VBA Trust, and Katz Voting Stock Trust, with Katz being a seat holder on the voting committee of these entities, thus giving her the power to direct their stock-related decisions.
The transactions indicate a significant move by Katz, who may be deemed to beneficially own the shares held by these entities. However, Katz has disclaimed beneficial ownership of these shares except to the extent of her pecuniary interest therein.
Investors and followers of Zurn Elkay Water Solutions Corp will be keeping a close eye on such transactions as they provide insights into the actions of major stakeholders within the company. Zurn Elkay Water Solutions Corp, a company with a focus on general industrial machinery and equipment, continues to be a key player in its industry, and moves by significant shareholders like Katz are often watched as indicators of confidence in the company's future prospects.
In other recent news, Zurn Elkay Water Solutions Corporation reported a robust financial performance in the first quarter, surpassing key metrics expectations. The company's sales increased by 400 basis points year-over-year, primarily driven by growth in non-residential markets, and adjusted EBITDA rose by 24%, expanding the margin by 460 basis points. In light of these strong results, Zurn Elkay raised its full-year margin outlook and confirmed plans for share repurchases.
Additionally, the company declared a quarterly dividend of $0.08 per share, scheduled to be paid in cash in June 2024 to shareholders on record by May 20, 2024. This announcement is part of Zurn Elkay's regular dividend payments to its stockholders, reflecting the company's continuous efforts to deliver value to its shareholders.
Despite the conservative guidance for the latter half of the year, Zurn Elkay remains optimistic about the full-year outlook. The company projects low single-digit pro forma core sales growth for Q2, an adjusted EBITDA margin between 24.5% and 25%, and approximately $250 million in free cash flow. These recent developments underline Zurn Elkay's commitment to its growth and sustainability strategy in the water solutions market.
InvestingPro Insights
Amidst the recent transaction by shareholder Aimee Katz, Zurn Elkay Water Solutions Corp (NYSE:ZWS) continues to present an interesting profile for investors, according to the latest InvestingPro data. With a market capitalization of $5.13 billion, ZWS is a significant entity in the industrial machinery and equipment sector. The company's P/E ratio stands at a moderate 41.41, which, when adjusted for the last twelve months as of Q1 2024, slightly decreases to 36.97. This suggests that investors are paying less for each dollar of ZWS's earnings compared to the previous year, potentially indicating an improved earnings outlook.
Furthermore, ZWS's PEG Ratio for the same period is notably low at 0.4, hinting at the stock being potentially undervalued relative to its earnings growth. This aligns with one of the InvestingPro Tips, which points out that ZWS is trading at a low P/E ratio relative to near-term earnings growth. Additionally, the company's revenue growth for the last twelve months as of Q1 2024 is 8.34%, showcasing a steady upward trajectory in its financial performance.
Investors may also find solace in the company's stability, as an InvestingPro Tip highlights that ZWS generally trades with low price volatility. This, combined with the fact that the company's liquid assets exceed its short-term obligations, suggests a solid financial footing that could reassure investors looking for a resilient stock in uncertain market conditions.
For those considering a deeper analysis, InvestingPro offers a wealth of additional tips on Zurn Elkay Water Solutions Corp, which could further inform investment decisions. By using the promo code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to valuable insights that could shape a robust investment strategy.
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