In a recent transaction on July 1, an insider at Zurn Elkay Water Solutions Corp (NYSE:ZWS) sold a significant amount of shares. The transaction, which was filed on July 3, involved the sale of 8,240 shares of common stock at an average price of $29.14 per share, totaling approximately $240,113.
The shares were sold in multiple transactions at prices ranging from $29.00 to $29.27. The insider involved in this sale is associated with entities that hold indirect ownership of the shares. According to the filing, the shares sold were directly held by Ice Mountain LLC, with April Jalazo being a seat holder on the voting committee with the power to direct the actions of the entity. Despite the sale, April Jalazo may be deemed to beneficially own the shares of Common Stock held by Ice Mountain, disclaiming beneficial ownership except to the extent of her pecuniary interest.
Following the transaction, the reporting person still has indirect ownership of a substantial number of shares, totaling 23,565,924, through various entities. These entities include Ice Mountain LLC, Katz New VBA Trust, and Katz Voting Stock Trust, with April Jalazo having a seat on the voting committees of each entity, providing her with the power to direct their actions.
Investors often monitor insider transactions as they can provide insights into the company's performance and insiders' views on the value of the stock. Zurn Elkay Water Solutions Corp, a company specializing in water solutions and plumbing products, is subject to the scrutiny of its shareholders and the Securities and Exchange Commission, which ensures transparency through the filing of such reports.
The stock transactions are detailed in the company’s latest SEC filing, which provides a closer look at the insider's trading activities and their remaining stake in the company.
In other recent news, Zurn Elkay Water Solutions Corporation reported a robust financial performance in Q1, surpassing expectations with a 400 basis point increase in sales year-over-year and a 24% rise in adjusted EBITDA. The company has raised its full-year outlook and confirmed plans for share repurchases. New product launches, such as the Hydro-X Sensor Flush Valve, were highlighted, along with a continued commitment to sustainability. CEO Todd Adams emphasized the company's growth strategies, particularly in the drinking water and filtration segments, which are projected to see double-digit growth rates.
In addition to the strong Q1 results, Zurn Elkay declared a quarterly dividend of $0.08 per share, scheduled for a June payout. This announcement underscores the company's ongoing efforts to deliver value to its shareholders while maintaining sustainable practices in water management.
These recent developments reflect Zurn Elkay's market approach, which is centered on growth and sustainability. The company remains optimistic about the full-year outlook, projecting low single-digit pro forma core sales growth for Q2, an adjusted EBITDA margin between 24.5% and 25%, and approximately $250 million in expected free cash flow. Despite conservative guidance for the latter half of the year, sustained gross margin improvement is anticipated.
InvestingPro Insights
Amidst the recent insider transactions at Zurn Elkay Water Solutions Corp (NYSE:ZWS), investors looking for a deeper understanding of the company's financial health can gain valuable insights from InvestingPro metrics and tips. Zurn Elkay, known for its expertise in water solutions, is currently navigating the market with a notable financial profile.
An InvestingPro Tip highlights that Zurn Elkay boasts a perfect Piotroski Score of 9, indicating a strong financial position. This assessment, which considers several aspects of the company's financial health, could reassure investors about the underlying stability of the business despite the insider sale. Additionally, the company is expected to see net income growth this year, which may reflect positively on future stock performance.
From the perspective of valuation, Zurn Elkay is trading at a P/E ratio of 41.22, with an adjusted P/E ratio over the last twelve months as of Q1 2024 at 36.8. This is particularly interesting when paired with the company's PEG Ratio over the same period, which stands at a low 0.39, suggesting that the company's earnings growth could be undervalued relative to its price.
InvestingPro Data also reveals that Zurn Elkay has a market capitalization of $5.12 billion, with a revenue growth of 8.34% over the last twelve months as of Q1 2024. This sustained revenue growth, combined with a gross profit margin of 43.69%, underscores the company's ability to maintain profitability in its operations.
For investors intrigued by these insights, InvestingPro offers additional tips on Zurn Elkay Water Solutions Corp, with a total of 10 tips available to guide investment decisions. These tips and more detailed metrics can be accessed by subscribing to InvestingPro, and with the use of coupon code PRONEWS24, readers can enjoy up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
Overall, the financial metrics provided by InvestingPro paint a picture of a company with solid fundamentals and potential for growth, which may help investors weigh the implications of insider trading activities against the broader financial health of Zurn Elkay Water Solutions Corp.
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