Investors tracking insider transactions at Zurn Elkay Water Solutions Corp (NYSE:ZWS) may have noticed a recent sale by Ice Mountain LLC. In a transaction dated June 20, 2024, Ice Mountain LLC, which is a ten percent owner of Zurn Elkay, sold 36,938 shares of common stock at a weighted average price of $30.44 per share. The total value of the stock sold amounted to approximately $1.12 million.
The sale took place in multiple transactions with prices ranging from $30.40 to $30.51. It is important to note that the price reported is a weighted average, and the specific number of shares sold at each price within this range can be provided upon request.
Following this transaction, Ice Mountain LLC's direct holdings amount to 23,682,793 shares of Zurn Elkay Water Solutions Corp. It's also worth mentioning that Cascade Bay LLC is the manager and sole Class A Member of Ice Mountain, and the Katz 2004 DYN Trust is the Special Assets Manager of Cascade Bay. Both Cascade Bay and the Katz 2004 DYN Trust may be deemed to beneficially own the shares of Common Stock directly held by Ice Mountain, as per the footnotes disclosed in the SEC filing.
This transaction was publicly filed with the Securities and Exchange Commission and is available for review. The sale was signed off by John Thickens, Senior Vice President of Northern Trust (NASDAQ:NTRS) Company, on behalf of Ice Mountain LLC, as well as on behalf of Cascade Bay LLC and Katz 2004 DYN Trust.
Investors often look to insider buying and selling as one of many indicators to help guide their investment decisions. Transactions such as these are closely monitored for insights into insider confidence and potential future performance of the company's stock.
In other recent news, Zurn Elkay Water Solutions Corporation has announced a robust financial performance in the first quarter, surpassing expectations in key metrics. The company has seen a 400 basis point increase in Q1 sales year-over-year, primarily driven by growth in non-residential markets. Additionally, adjusted EBITDA rose by 24%, with a margin expansion of 460 basis points.
In light of these results, Zurn Elkay has raised its full-year margin outlook and confirmed plans for share repurchases. The corporation has also declared a quarterly dividend of $0.08 per share, scheduled to be paid in cash to shareholders on record by May 20, 2024.
These recent developments follow the company's ongoing commitment to delivering value to its shareholders, as well as its focus on sustainable practices in water management. The company remains optimistic about the full-year outlook, projecting low single-digit pro forma core sales growth for Q2 and an adjusted EBITDA margin between 24.5% and 25%, with approximately $250 million in free cash flow expected.
InvestingPro Insights
With a keen eye on Zurn Elkay Water Solutions Corp (NYSE:ZWS), investors have observed a recent insider sale by Ice Mountain LLC. To complement this information, a look at the company through the lens of InvestingPro reveals a deeper financial perspective. ZWS boasts a robust Piotroski Score of 9, indicating strong financial health and suggesting that the fundamentals of the company are solid. Additionally, the company is anticipated to see net income growth this year, a positive signal for potential investors.
From a valuation standpoint, ZWS is trading at a P/E ratio of 42.33, which adjusts to a slightly more attractive 37.44 when considering the last twelve months as of Q1 2024. This is particularly noteworthy given the company's low PEG ratio of 0.4 during the same period, hinting at the stock being potentially undervalued relative to its earnings growth. Meanwhile, the revenue growth has been modest, with an 8.34% increase over the last twelve months as of Q1 2024, reflecting a steady upward trajectory.
InvestingPro Tips also indicate that the stock generally trades with low price volatility, which could be appealing to investors seeking stability. With liquid assets surpassing short-term obligations and the company operating with a moderate level of debt, ZWS's financial position appears secure. Moreover, analysts are optimistic about the profitability of the company this year, backed by a profitable performance over the last twelve months.
For investors looking for comprehensive analysis and additional insights, InvestingPro offers a total of 11 InvestingPro Tips for ZWS, which can be accessed at https://www.investing.com/pro/ZWS. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, ensuring you stay ahead with the most up-to-date financial analysis and investment tips.
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