In a recent transaction, an insider at Zurn Elkay Water Solutions Corp (NYSE:ZWS) has sold a significant amount of shares, signaling noteworthy trading activity. The insider, Ice Mountain LLC, disposed of 100,000 shares at an average price of $29.04, totaling over $2.9 million. This transaction took place on June 28, 2024.
The price range for the shares sold varied from $29.00 to $29.21, with the weighted average coming to $29.04. This detail indicates a range of prices for the transactions that occurred, providing a broader picture of the trading activity.
Following the sale, Ice Mountain LLC's direct holdings in Zurn Elkay Water Solutions Corp have decreased, but the exact remaining stake is not immediately clear. However, it should be noted that both Cascade Bay LLC and the Katz 2004 DYN Trust have indirect ties to the shares sold by Ice Mountain LLC, due to their respective roles within the managing structure of the selling entity.
Investors often keep an eye on insider transactions as they can provide insights into the company's performance and insiders' perspectives on the stock's value. While the reasons behind the sale by Ice Mountain LLC are not disclosed, the substantial amount could be of interest to current and potential shareholders.
Zurn Elkay Water Solutions Corp, listed under the ticker ZWS on the New York Stock Exchange, is a company that specializes in providing water solutions and is recognized in the general industrial machinery and equipment sector.
The transaction was reported in compliance with SEC regulations, which mandate insiders to disclose sales and purchases of company stock. The reporting entities have confirmed the transaction details with signatures from a senior vice president of Northern Trust (NASDAQ:NTRS) Company, acting on behalf of the involved parties.
In other recent news, Zurn Elkay Water Solutions Corporation announced a strong first quarter financial performance, exceeding expectations in sales, earnings, and cash flow. The company reported a 400 basis point increase in Q1 sales year-over-year, primarily driven by growth in non-residential markets, and a 24% growth in adjusted EBITDA. In light of these results, Zurn Elkay raised its full-year margin outlook and confirmed plans for share repurchases.
The company also declared a quarterly dividend of $0.08 per share, scheduled for a June payout. This move is part of Zurn Elkay's continuous efforts to deliver value to its shareholders while maintaining its commitment to sustainable practices in water management.
In other company news, Zurn Elkay launched successful products such as the Hydro-X Sensor Flush Valve and emphasized its ongoing commitment to sustainability. The company's CEO, Todd Adams, shared insights into their growth strategy, including a focus on the drinking water and filtration segments, which are projected to see double-digit growth rates.
It's noteworthy that these are recent developments within the company. Investors are reminded that forward-looking statements made by Zurn Elkay are subject to risks and uncertainties. Despite the conservative guidance for the latter half of the year, sustained gross margin improvement is anticipated. The company 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%.
InvestingPro Insights
As Zurn Elkay Water Solutions Corp (NYSE:ZWS) navigates the market, recent insider trading activity has caught the attention of investors. To better understand the company's financial health and market position, let's delve into some key metrics provided by InvestingPro.
Zurn Elkay Water Solutions Corp currently holds a market capitalization of $5.04 billion, reflecting its size and significance in the industry. The company's P/E ratio stands at 40.94, which is adjusted to 36.3 when considering the last twelve months as of Q1 2024. This suggests that investors are willing to pay $36.3 for every dollar of earnings, which can be indicative of expectations for future growth. Moreover, the PEG ratio during the same period is 0.38, which could imply that the stock is potentially undervalued relative to its earnings growth.
InvestingPro Tips highlight several aspects of ZWS's financial performance and market sentiment. Notably, ZWS has a perfect Piotroski Score of 9, indicating strong financial health. Additionally, net income is expected to grow this year, which aligns with the positive sentiment around the company's future profitability. With analysts predicting that the company will be profitable this year and a strong return over the last five years, these factors may provide some context to the insider selling activity.
For investors looking for more comprehensive analysis and additional insights, InvestingPro offers a range of tips. There are 11 more InvestingPro Tips available for ZWS, which can be accessed at Investing.com/pro/ZWS. To enhance your investment research experience, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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