In a recent transaction, a significant stakeholder in Zurn Elkay Water Solutions Corp (NYSE:ZWS), has sold a portion of their holdings in the company. The stakeholder, April Jalazo, who is associated with the company as a ten percent owner, offloaded 36,938 shares of common stock at an average price of $30.44, netting a total of $1,124,392.
The transaction occurred on June 20, 2024, and was disclosed in a filing with the Securities and Exchange Commission. The shares were sold in multiple transactions with prices ranging from $30.40 to $30.51. This range indicates a weighted average price, which serves as a basis for the reported total transaction value.
Following the sale, the reporting person's directly associated entity, Ice Mountain LLC, still holds a substantial amount of Zurn Elkay Water Solutions Corp shares. According to the footnotes in the SEC filing, the shares are managed by various trusts and entities with April Jalazo having a seat on the voting committees, giving her the power to direct them. While she may be deemed to beneficially own these shares, she disclaims beneficial interest except to the extent of her pecuniary interest therein.
Investors often monitor insider transactions such as these for insights into the perspectives of those with intimate knowledge of the company. Zurn Elkay Water Solutions Corp, with its ticker symbol ZWS, is a company specializing in general industrial machinery and equipment, a sector that often sees a significant amount of insider activity.
The sale represents a notable change in the stakeholder's investment in the company, although it does not necessarily indicate a shift in the company's business outlook or performance. Shareholders and potential investors in Zurn Elkay Water Solutions Corp will likely continue to track such transactions for any implications they may have on the value of their investments.
In other recent news, Zurn Elkay Water Solutions Corporation has announced a strong first quarter performance, exceeding expectations in sales, earnings, and cash flow. The company reported a 400 basis point increase in Q1 sales year-over-year, with adjusted EBITDA growing by 24%. This positive outcome has prompted Zurn Elkay to raise its full-year margin outlook and confirm plans for share repurchases.
In further developments, Zurn Elkay declared a quarterly dividend of $0.08 per share, scheduled for June payout. This announcement is part of the company's regular dividend payments to its stockholders, underlining its ongoing efforts to deliver shareholder value.
The company also highlighted its successful product launches, such as the Hydro-X Sensor Flush Valve, and its commitment to sustainability. 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%. These recent developments underline Zurn Elkay's robust financial performance and strategic focus on growth and sustainability.
InvestingPro Insights
In light of the recent insider transaction involving Zurn Elkay Water Solutions Corp (NYSE:ZWS), investors might find the following insights from InvestingPro valuable. With a market capitalization of $5.21 billion and a trailing twelve-month revenue of $1.53 billion, ZWS shows a growth of 8.34% in revenue over the last year as of Q1 2023. This could be indicative of the company's ability to expand its business and generate increased sales.
One of the key InvestingPro Tips for ZWS is its perfect Piotroski Score of 9, which suggests that the company is financially healthy and has strong accounting fundamentals. This could reassure investors about the company's financial stability and operational efficiency. Additionally, ZWS is expected to see net income growth this year, which could reflect positively on the company's profitability and potentially on shareholder returns.
Another aspect to consider is the company's valuation metrics. ZWS is currently trading at a P/E ratio of 42.33, which is high but is lower when adjusted for the last twelve months as of Q1 2023, coming in at 37.44. The PEG ratio during the same period is 0.4, indicating that the company's earnings growth could be undervalued relative to its P/E ratio. This might suggest that ZWS's stock could be attractive to value investors looking for growth potential at a reasonable price.
For those interested in exploring further, there are additional InvestingPro Tips available at https://www.investing.com/pro/ZWS, which can provide more in-depth analysis and guidance. Use the coupon code PRONEWS24 to receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a wealth of financial information and expert insights. With 10 more tips listed in InvestingPro, investors can gain a comprehensive understanding of Zurn Elkay Water Solutions Corp's investment potential.
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