In a recent transaction, Ice Mountain LLC, which is considered a ten percent owner of Zurn Elkay Water Solutions Corp (NYSE:ZWS), has sold a total of 8,240 shares of the company's common stock. The shares were sold at a weighted average price of $29.14, amounting to a total value of approximately $240,113.
The sale took place on July 1, 2024, with prices ranging from $29.00 to $29.27 per share. Ice Mountain LLC's disposition of shares was disclosed in a filing with the Securities and Exchange Commission dated July 3, 2024.
Following the sale, Ice Mountain LLC's directly held stake in Zurn Elkay Water Solutions Corp has been adjusted to 23,565,924 shares. It is important to note that Cascade Bay LLC, as the manager and sole Class A Member of Ice Mountain, along with Katz 2004 DYN Trust, which serves as the Special Assets Manager of Cascade Bay, may be deemed to beneficially own the shares directly held by Ice Mountain.
Investors and stakeholders often monitor such transactions as they can provide insights into the confidence levels and perspectives of major shareholders regarding the company's current valuation and future prospects.
The transaction was signed off by John Thickens, Senior Vice President of Northern Trust (NASDAQ:NTRS) Company, on behalf of the selling entities Ice Mountain LLC, Cascade Bay LLC, and Katz 2004 DYN Trust. The disclosure provides transparency into the trading activities of significant shareholders and ensures regulatory compliance.
Zurn Elkay Water Solutions Corp, with its trading symbol ZWS listed on the NYSE, operates within the industrial machinery and equipment sector, providing water solutions and products for commercial and residential markets.
In other recent news, Zurn Elkay Water Solutions Corporation has made significant strides in its financial performance. The company has recently declared a quarterly dividend of $0.08 per share, scheduled for a June payout. This announcement is a part of Zurn Elkay's regular dividend payments to its stockholders, highlighting its continuous efforts to deliver value to its shareholders.
In addition, the company reported a robust financial performance in the first quarter, surpassing expectations with a 400 basis point increase in sales year-over-year, primarily driven by growth in non-residential markets. Adjusted EBITDA also rose by 24%, with the margin expanding by 460 basis points. In light of these results, Zurn Elkay raised its full-year margin outlook and confirmed plans for share repurchases.
Furthermore, the company has launched successful new products like the Hydro-X Sensor Flush Valve, and continues to focus on sustainability. The CEO, Todd Adams, provided insights into the company's growth strategies, particularly in the drinking water and filtration segments, which are expected to see double-digit growth rates. Despite conservative guidance for the latter half of the year, Zurn Elkay 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. These are some of the recent developments in Zurn Elkay's business operations.
InvestingPro Insights
Amidst the recent transaction involving Ice Mountain LLC's sale of Zurn Elkay Water Solutions Corp (NYSE:ZWS) shares, current and potential investors may find particular InvestingPro metrics and tips quite informative. With a market capitalization of $5.12 billion and a price-to-earnings (P/E) ratio of 41.22, Zurn Elkay Water Solutions Corp appears to be trading at a high earnings multiple. However, when evaluating the company's performance over the last twelve months as of Q1 2024, the adjusted P/E ratio stands at a slightly lower 36.8, suggesting a potential normalization in valuation.
One InvestingPro Tip highlights that ZWS has a perfect Piotroski Score of 9, indicating strong financial health, which could reassure investors about the company's fundamentals in the wake of share disposals by major stakeholders. Additionally, the company is anticipated to be profitable this year, as analysts expect net income growth, which aligns with the company's solid gross profit margin of 43.69% over the last twelve months as of Q1 2024.
Furthermore, Zurn Elkay Water Solutions Corp's revenue has grown by 8.34% over the last twelve months as of Q1 2024, reflecting steady business expansion. Investors might also note that the company's liquid assets exceed its short-term obligations, which is an encouraging sign of liquidity and financial resilience.
For those interested in a deeper analysis, InvestingPro offers additional tips that could further guide investment decisions. There are 9 more InvestingPro Tips available for ZWS at https://www.investing.com/pro/ZWS. Readers looking to access these tips and comprehensive metrics can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing an opportunity to enhance their investment strategy with more detailed insights.
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