April Jalazo, a significant shareholder of Zurn Elkay Water Solutions Corp (NYSE:ZWS), has recently sold 100,000 shares of the company's common stock. The transaction, which took place on June 28, 2024, amounted to a total of $2.9 million.
The shares were sold at a weighted average price of $29.04, with individual sales prices ranging from $29.00 to $29.21. The specifics of the number of shares sold at each price point within this range are available upon request from Zurn Elkay Water Solutions Corporation, any security holder of the company, or the Securities and Exchange Commission staff.
Following the sale, the total number of shares beneficially owned by April Jalazo, through various entities, stands at a substantial 23,574,164 shares of Zurn Elkay Water Solutions Corp's common stock. It's important to note that these shares are held indirectly through Ice Mountain LLC, with Cascade Bay LLC as the manager and sole Class A Member. Additionally, April Jalazo holds a seat on the voting committee of the Katz 2004 DYN Trust, which has the power to direct Cascade Bay and, in turn, Ice Mountain.
April Jalazo disclaims beneficial interest in these shares, except to the extent of her pecuniary interest. This disclaimer also applies to additional shares held indirectly by Jalazo through Katz New VBA Trust and Katz Voting Stock Trust, amounting to 14,101 and 236,387 shares, respectively.
The transaction reflects a significant movement of stock by an insider of Zurn Elkay Water Solutions Corp, a company that specializes in water solutions and is known for its industrial machinery and equipment. The sale was formally documented in a Form 4 filing with the Securities and Exchange Commission, signed by April Jalazo on July 1, 2024.
In other recent news, Zurn Elkay Water Solutions Corporation has been making significant strides in its financial performance. The company recently declared a $0.08 per share quarterly dividend, scheduled for a June payout to shareholders on record by May 20, 2024. This announcement is part of Zurn Elkay's ongoing commitment to provide value to its shareholders.
Moving on to earnings and revenue, Zurn Elkay reported a robust financial performance in the first quarter. The company saw a 400 basis point increase in sales year-over-year, primarily driven by growth in non-residential markets. Additionally, adjusted EBITDA 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. The company anticipates 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 recent developments indicate that Zurn Elkay is maintaining its growth trajectory while focusing on sustainability and product innovation. The company also highlighted successful product launches, such as the Hydro-X Sensor Flush Valve, indicating a continued commitment to addressing water-related challenges.
InvestingPro Insights
Amid the recent insider stock movement at Zurn Elkay Water Solutions Corp (NYSE:ZWS), there are notable insights from InvestingPro that can offer a deeper understanding of the company's financial health and market position. Zurn Elkay Water Solutions Corp, recognized for its focus on water solutions and industrial machinery, shows a promising financial outlook according to InvestingPro Tips. The company boasts a perfect Piotroski Score of 9, indicating strong financial health, and analysts predict that Zurn Elkay will be profitable this year, with an expected growth in net income.
From a market perspective, the company's stock is currently trading at a low Price-to-Earnings (P/E) ratio of 40.94 relative to near-term earnings growth, which suggests potential for investors. Additionally, the Relative Strength Index (RSI) suggests that the stock is in oversold territory, which could interest value-seeking investors. For those looking for stability, Zurn Elkay typically trades with low price volatility, as per InvestingPro Tips.
Examining the InvestingPro Data, Zurn Elkay has a market capitalization of $5.04 billion, and its revenue has grown by 8.34% over the last twelve months as of Q1 2024. Furthermore, the company has a solid gross profit margin of 43.69% during the same period. This financial performance is complemented by a Price/Earnings to Growth (PEG) Ratio of 0.38, which could be attractive to investors looking for growth at a reasonable price.
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