In a recent transaction, an insider at Zurn Elkay Water Solutions Corp (NYSE:ZWS) has sold a significant number of shares in the company. The transaction, which occurred on June 21, 2024, involved the sale of 8,629 shares at an average price of $30.40, amounting to a total of $262,321.
The insider involved in this sale is associated with Ice Mountain LLC, a ten percent owner of Zurn Elkay Water Solutions. According to the details provided, the shares were sold at prices ranging from $30.40 to $30.42. The exact number of shares sold at each price point within this range can be provided upon request, as noted in the footnotes of the SEC filing.
Following the transaction, Ice Mountain LLC's direct holdings in Zurn Elkay Water Solutions amount to 23,674,164 shares. It's important to note that Cascade Bay LLC is the manager and sole Class A Member of Ice Mountain, and Katz 2004 DYN Trust acts as the Special Assets Manager for Cascade Bay. Both Cascade Bay and Katz 2004 DYN Trust may be deemed to beneficially own the shares directly held by Ice Mountain.
Investors and market watchers often pay close attention to insider transactions as they can provide insights into the company's performance and insiders' perspectives on the stock's value. The sale of shares by an insider can be interpreted in various ways, though it does not necessarily indicate a lack of confidence in the company's future prospects.
Zurn Elkay Water Solutions Corp, which operates in the general industrial machinery and equipment industry, has undergone several name changes in the past, reflecting its evolving business strategy and market positioning. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol ZWS.
In other recent news, Zurn Elkay Water Solutions Corporation has made significant strides in its financial performance. The company demonstrated robust results in the first quarter, with sales increasing by 400 basis points year-over-year and adjusted EBITDA growing by 24%. These strong results prompted Zurn Elkay to raise its full-year margin outlook and confirm plans for share repurchases.
In addition to its financial achievements, the company declared a quarterly dividend of $0.08 per share, scheduled for a June payout. This announcement emphasizes Zurn Elkay's ongoing commitment to delivering value to its shareholders.
Moreover, the company has launched successful products such as the Hydro-X Sensor Flush Valve and maintains a focus on sustainability. Analysts project low single-digit pro forma core sales growth for Q2 and an adjusted EBITDA margin between 24.5% and 25%. They also expect the company to generate approximately $250 million in free cash flow.
These are recent developments for Zurn Elkay, a company that continues to reinforce its market position through growth and sustainability.
InvestingPro Insights
Amidst the insider trading activity at Zurn Elkay Water Solutions Corp (NYSE:ZWS), current market data and expert analysis can offer additional layers of understanding for investors. According to the latest metrics, Zurn Elkay Water Solutions has a market capitalization of approximately $5.13 billion, and its stock is trading at a P/E ratio of 41.41. However, when adjusted for the last twelve months as of Q1 2024, the P/E ratio stands at a slightly lower 36.97, hinting at an improved earnings outlook.
One noteworthy InvestingPro Tip is that ZWS has a perfect Piotroski Score of 9, which suggests strong financial health and is often a sign that the company is well-positioned for future performance. Additionally, analysts have revised their earnings estimates upwards for the upcoming period, indicating potential optimism about the company's profit trajectory. This is further supported by the InvestingPro Tip highlighting that ZWS is expected to be profitable this year, with net income forecasted to grow.
From a valuation standpoint, the company's PEG ratio for the last twelve months as of Q1 2024 is 0.4, which could imply that the stock is undervalued relative to its earnings growth. This aligns with the InvestingPro Tip that ZWS is trading at a low P/E ratio relative to near-term earnings growth. For investors considering the stability of their investments, it's also relevant to note that ZWS generally trades with low price volatility.
For those interested in exploring more in-depth analysis and additional tips, there are 10 more InvestingPro Tips available, which could further inform investment decisions. To access these tips, visit https://www.investing.com/pro/ZWS and remember to use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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