In a recent transaction, Ice Mountain LLC, a major shareholder in Zurn Elkay Water Solutions Corp (NYSE:ZWS), has sold a significant number of shares in the company. The sale, which took place on June 10, 2024, involved 100,000 shares of common stock at an average price of $30.10 per share, amounting to a total value of $3.01 million.
The shares were sold in multiple transactions with prices ranging from $30.00 to $30.18. This range indicates a slight fluctuation in the stock's selling price during the course of the sale. Ice Mountain LLC's decision to sell these shares has resulted in a new post-transaction ownership total of 24,068,932 shares in the company.
It is important to note that Ice Mountain LLC's management and ownership structure is somewhat complex. Cascade Bay LLC is the managing entity and the sole Class A Member of Ice Mountain LLC. Additionally, Katz 2004 DYN Trust functions as the Special Assets Manager of Cascade Bay LLC. Due to these relationships, both Cascade Bay LLC and Katz 2004 DYN Trust may be considered to have beneficial ownership over the shares held by Ice Mountain LLC.
Investors and market watchers often pay close attention to such transactions as they can indicate the sentiment of major shareholders regarding the company's future prospects. However, the specific reasons behind Ice Mountain LLC's sale have not been disclosed.
The sale was documented and signed by John Thickens, Senior Vice President of Northern Trust (NASDAQ:NTRS) Company, on behalf of Ice Mountain LLC, Cascade Bay LLC, and Katz 2004 DYN Trust. The transaction was filed with the Securities and Exchange Commission as required by securities regulations.
In other recent news, Zurn Elkay Water Solutions Corporation has made notable strides in its financial performance. The company recently announced a robust Q1 performance, with sales increasing by 400 basis points year-over-year, primarily driven by growth in the non-residential markets. Additionally, the firm's adjusted EBITDA rose by 24%, with the margin expanding by 460 basis points.
Following these positive results, Zurn Elkay raised its full-year margin outlook and confirmed plans for share repurchases. The company also declared a quarterly dividend of $0.08 per share, scheduled for a June payout, as part of its regular dividend payments to stockholders.
These recent developments underscore the company's continuous efforts to deliver value to its shareholders. 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. The company's strategies for growth include a focus on drinking water and filtration segments, which are expected to see double-digit growth rates.
InvestingPro Insights
In light of the recent share sale by Ice Mountain LLC, a deeper look at Zurn Elkay Water Solutions Corp's (NYSE:ZWS) financial health and market performance through InvestingPro data may offer investors additional context. The company boasts a market capitalization of $5.38 billion, which underscores its significance in the sector and the weight of transactions like the one executed by Ice Mountain LLC.
An InvestingPro Tip highlights the company's strong financial position, with a perfect Piotroski Score of 9, indicating sound fiscal health and potentially lower risk for investors. Additionally, analysts have revised their earnings upwards for the upcoming period, suggesting a positive outlook for the company's profitability.
InvestingPro Data shows a Price/Earnings (P/E) Ratio of 44.01, which, when adjusted for the last twelve months as of Q1 2024, stands at 38.77. This P/E ratio is considered low relative to near-term earnings growth, potentially making ZWS an attractive investment for those looking at earnings potential. Furthermore, the company's Price to Book (P/B) ratio as of the last twelve months is 3.34, which can be indicative of how the market values the company's net assets.
For investors seeking additional insights, there are 10 more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/ZWS. These tips may provide further guidance on ZWS's stock performance and future prospects. Interested readers can also take advantage of a special offer by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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