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Zurn Elkay water solutions insider sells shares worth over $2.9 million

Published 07/02/2024, 05:17 PM
ZWS
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An insider at Zurn Elkay Water Solutions Corp (NYSE:ZWS), a company known for its water solutions and plumbing products, has recently sold a significant number of shares. Aimee Katz, who is associated with the company as a ten percent owner, offloaded 100,000 shares of common stock at an average price of $29.04 per share, resulting in a total transaction value of over $2.9 million.

The transactions occurred on June 28, 2024, and were disclosed in a regulatory filing with the Securities and Exchange Commission. According to the filing details, the shares were sold in multiple transactions at prices ranging from $29.00 to $29.21. This price range indicates a weighted average, reflecting the varying prices at which the stock was sold.

Following the sale, Katz's directly and indirectly held stakes in Zurn Elkay Water Solutions Corp have been adjusted. The shares sold were held by Ice Mountain LLC, an entity over which Katz has significant influence due to her role on the voting committee of the Katz 2004 DYN Trust, which directs Ice Mountain LLC. Post-transaction, Katz may be deemed to beneficially own a total of 23,574,164 shares of Zurn Elkay Water Solutions Corp common stock, taking into account both direct and indirect holdings through various trusts and entities.

It is important to note that Katz has disclaimed beneficial ownership of these shares except to the extent of her pecuniary interest. This disclaimer is a standard legal declaration indicating that while Katz has influence over the shares, she may not have a personal financial interest in all of them.

Investors often monitor insider transactions as they can provide insights into the company's performance and insider perspectives on the stock's value. Zurn Elkay Water Solutions Corp, headquartered in Milwaukee, Wisconsin, continues to be a key player in the industrial machinery and equipment sector.

For those interested in Zurn Elkay Water Solutions Corp's financial movements, the stock is listed under the ticker symbol ZWS on the New York Stock Exchange.

In other recent news, Zurn Elkay Water Solutions Corporation has been actively delivering positive outcomes for its investors. The company has declared a quarterly dividend of $0.08 per share, which is scheduled to be paid out in June. This is part of Zurn Elkay's regular dividend payments, a practice that aligns with its commitment to shareholder value and sustainable water management practices.

In addition, the company has reported strong financial performance in its first quarter. Sales increased by 400 basis points year-over-year, primarily driven by growth in non-residential markets. Consequently, adjusted EBITDA rose by 24%, leading to a margin expansion of 460 basis points. These robust results prompted Zurn Elkay to raise its full-year margin outlook and confirm plans for share repurchases.

The company's CEO, Todd Adams, has provided insights into Zurn Elkay's growth strategies, emphasizing the focus on the drinking water and filtration segments. Despite conservative guidance for the latter half of the year, the company is optimistic about its full-year outlook. It projects low single-digit pro forma core sales growth for Q2, an adjusted EBITDA margin between 24.5% and 25%, and approximately $250 million in free cash flow. These recent developments are based on the company's successful product launches and ongoing commitment to sustainability.

InvestingPro Insights

Amidst the news of insider selling at Zurn Elkay Water Solutions Corp (NYSE:ZWS), investors are keen on understanding the company's current financial health and future prospects. According to InvestingPro, ZWS has a perfect Piotroski Score of 9, indicating a strong financial position, which may be a reassuring signal for investors looking at the fundamentals. Additionally, analysts predict that the company will be profitable this year, which could be a driving factor for future stock performance.

From a valuation standpoint, ZWS is trading at a P/E ratio of 40.94, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at 36.3. This valuation comes in context with a PEG Ratio for the same period at 0.38, suggesting that the stock's price is potentially undervalued relative to its earnings growth. Moreover, with a Revenue Growth of 8.34% for the last twelve months as of Q1 2024, Zurn Elkay Water Solutions Corp demonstrates a steady increase in its revenue streams.

Investors should also note that ZWS's stock generally trades with low price volatility, which might be a desirable characteristic for those looking for stable investment opportunities. For a more comprehensive analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/ZWS. Subscribers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering a deeper dive into the company's metrics and prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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