Sudhanshu Chhabra, the Vice President of Zurn Business Systems at Zurn Elkay Water Solutions Corp (NYSE:ZWS), has sold 52,851 shares of company stock, garnering over $1.7 million. The transactions occurred on September 12, 2024, and were disclosed in a recent filing with the Securities and Exchange Commission.
The shares were sold at prices ranging from $32.4550 to $32.7150, with the weighted average sale price being reported at $32.5473. This sale significantly reduced Chhabra's direct holdings in the company, leaving him with 80,151 shares after the transaction.
On the same day, Chhabra also acquired 52,851 shares at a price of $12.67 per share. This acquisition is part of a non-derivative transaction which amounted to a total of $669,622.
Zurn Elkay Water Solutions Corp, known for its expertise in water solutions and industrial machinery, has seen its executives actively participate in the trading of its shares. The company, with its headquarters in Milwaukee, Wisconsin, has undergone several name changes in the past, previously known as Rexnord (NYSE:ZWS) Corporation and Zurn Water Solutions Corp.
Investors and market watchers often look to insider selling and buying as a signal of confidence in the company's prospects. Transactions by executives can provide insights into their view of the company's value and future performance.
The details of the transactions, including the total number of shares and the prices at which the transactions were effectuated, are available upon request from the SEC staff, the issuer, or a security holder of the issuer, as stated in the footnotes of the filing.
This latest move by a key executive at Zurn Elkay Water Solutions Corp will be closely analyzed by the market as it assesses the water solutions leader's position in the industry and its trajectory moving forward.
In other recent news, Zurn Water Solutions has been making waves in the financial sector. Zurn reported notable growth in its second-quarter performance, with a 20% increase in adjusted EBITDA and significant margin expansion, which led to a core growth of 3%. The company also generated $80 million in free cash flow and repurchased nearly 2 million shares. This contributed to an EBITDA increase of $35 million for the first half of the year and surpassed $250 million in free cash flow for the full year.
Baird has taken note of this impressive performance, raising its price target for Zurn Water from $36 to $37, while maintaining a neutral rating on the stock. They attributed this decision to Zurn Water's better-than-expected margin results and the company's commendable internal execution amidst a varied market environment.
The company's management has also upgraded its 2024 guidance based on these positive results. Furthermore, Baird highlighted the company's strong position for strategic capital deployment due to its solid balance sheet and the flexibility offered by a recent change in leadership. These are some of the recent developments that have shaped Zurn Water's financial trajectory.
InvestingPro Insights
Zurn Elkay Water Solutions Corp (NYSE:ZWS) has been in the spotlight following recent insider trading activity. As market participants digest the significance of Sudhanshu Chhabra's stock transactions, it's crucial to consider the company's financial performance and outlook. According to InvestingPro data, Zurn Elkay Water Solutions Corp has a market capitalization of approximately $5.61 billion and a Price to Earnings (P/E) ratio of 41.76. This relatively high P/E ratio is moderated by the company's P/E ratio for the last twelve months as of Q2 2024, which stands at 38.32, reflecting expectations of near-term earnings growth.
An InvestingPro Tip notes that net income is expected to grow this year, which may explain the optimistic earnings multiples. Additionally, the company has seen a significant return over the last week, with a 10.64% price total return, suggesting a positive short-term sentiment among investors. Moreover, the company's liquid assets exceed its short-term obligations, indicating a solid liquidity position to meet its immediate financial responsibilities.
For those interested in a deeper analysis, InvestingPro offers additional insights, including the fact that three analysts have revised their earnings upwards for the upcoming period. This consensus among analysts could be a strong signal of the company's potential for growth. Furthermore, Zurn Elkay Water Solutions Corp is trading at a low PEG ratio of 0.27 for the last twelve months as of Q2 2024, which may indicate that the stock is potentially undervalued relative to its earnings growth rate.
Investors seeking to understand the full picture of Zurn Elkay Water Solutions Corp's financial health and future prospects can find more InvestingPro Tips by visiting https://www.investing.com/pro/ZWS. With a total of 10 additional tips available, these insights could prove invaluable in making informed investment decisions.
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