In a recent transaction on July 2, 2024, an insider at Zurn Elkay Water Solutions Corp (NYSE:ZWS) sold a substantial number of shares in the company. Aimee Katz, who is associated with the company as a ten percent owner, offloaded 111,760 shares of common stock at an average price of $29.07, resulting in a total value of $3,248,863. The transaction was disclosed in a regulatory filing with the Securities and Exchange Commission.
The shares were sold in multiple transactions at prices that ranged from $29.00 to $29.13. The exact number of shares sold at each price point within this range has not been specified, but the average price reflects the weighted average of these sales.
Following the sale, the reporting person's indirectly held stake in Zurn Elkay Water Solutions Corp consists of 23,454,164 shares. According to the footnotes of the filing, these shares are held through various entities, including Ice Mountain LLC, Katz New VBA Trust, and Katz Voting Stock Trust, with Katz having a seat on the voting committee or similar power to direct the entities. Katz disclaims beneficial ownership of these shares except to the extent of her pecuniary interest.
Investors often monitor insider transactions as they provide insights into how the company's leadership perceives the value of the stock and the firm's financial health. While the reasons behind Katz's decision to sell are not disclosed in the filing, the transaction size is significant and may draw the attention of the investment community.
Zurn Elkay Water Solutions Corp specializes in water solutions and is known for its industrial machinery and equipment. The company's stock is traded under the ticker symbol ZWS on the New York Stock Exchange.
In other recent news, Zurn Elkay Water Solutions Corporation reported strong Q1 performance, exceeding expectations on key metrics. The company announced a 400 basis point increase in sales year-over-year, largely driven by growth in non-residential markets, and a 24% rise in adjusted EBITDA. As a result, Zurn Elkay raised its full-year margin outlook and confirmed plans for share repurchases.
Moreover, Zurn Elkay declared a quarterly dividend of $0.08 per share, scheduled to be paid in cash in June to shareholders on record by May. This announcement aligns with the company's regular dividend payments to its shareholders.
In other recent developments, Zurn Elkay launched successful products like the Hydro-X Sensor Flush Valve and continues its commitment to sustainability. The company anticipates sustained gross margin improvement and projects low single-digit pro forma core sales growth for Q2. An adjusted EBITDA margin between 24.5% and 25% is expected, along with approximately $250 million in free cash flow.
These recent developments underscore Zurn Elkay's commitment to delivering value to its shareholders while maintaining sustainable practices in water management.
InvestingPro Insights
Zurn Elkay Water Solutions Corp's (NYSE:ZWS) recent insider transaction coincides with some notable financial metrics and analyst expectations. With a market capitalization of $5.03 billion and a P/E ratio standing at 40.71, the company's valuation reflects its current earnings. However, looking at the adjusted P/E ratio for the last twelve months as of Q1 2024, which is at 36.17, it suggests a slight improvement in earnings relative to the company's share price.
One of the standout InvestingPro Tips for ZWS is its perfect Piotroski Score of 9, indicating strong financial health and operational efficiency. Additionally, analysts predict that the company will be profitable this year, reinforcing positive outlooks on its performance. These factors may provide some context for the insider selling activity, as insiders might sell shares for reasons unrelated to the company's fundamental value.
Investors tracking Zurn Elkay Water Solutions Corp's performance will also find the PEG ratio of 0.39 particularly interesting, as it suggests that the stock may be undervalued relative to its earnings growth potential. Furthermore, the company's revenue has grown by 8.34% over the last twelve months as of Q1 2024, which could be a positive signal for future profitability.
For those looking to delve deeper into Zurn Elkay Water Solutions Corp's financials and stock performance, there are additional InvestingPro Tips available at InvestingPro. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 9 more tips on InvestingPro that could further inform investment decisions regarding ZWS.
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