MILWAUKEE—David J. Pauli, Chief Financial Officer of Zurn Elkay Water Solutions Corp (NYSE:ZWS), recently sold a portion of his company shares, according to a recent SEC filing. On November 7, Pauli sold 4,070 shares of common stock at an average price of $39.15 per share, totaling approximately $159,340. The sale was conducted to satisfy tax withholding obligations related to the vesting of performance stock units.
Following this transaction, Pauli's direct ownership stands at 47,572 shares. The transaction was executed in multiple trades with prices ranging from $39.01 to $39.27. Additionally, Pauli acquired 8,320 shares on November 6 through the vesting of performance stock units, which were acquired for no consideration.
In other recent news, Zurn Elkay Water Solutions Corporation announced strong results in its Third Quarter 2024 Earnings Call. The company reported a 4% core growth and a 9% increase in adjusted EBITDA, leading to an improvement in margins. Zurn Elkay also raised its full-year free cash flow outlook to approximately $260 million and increased its quarterly dividend by 12.5%, indicating a positive outlook for its financial health. Total (EPA:TTEF) Q3 sales reached $410 million, with non-residential markets driving growth. The company expects low single-digit core sales growth in Q4 2024 and maintains a strong EBITDA margin of 25% year-to-date. Future projections indicate an improvement in non-residential construction starts in 2025. The company is also exploring M&A opportunities as part of its capital allocation strategy.
InvestingPro Insights
As David J. Pauli adjusts his stake in Zurn Elkay Water Solutions Corp (NYSE:ZWS), investors may find value in examining the company's current financial position and market performance. According to InvestingPro data, ZWS boasts a market capitalization of $6.63 billion, reflecting its substantial presence in the water solutions industry.
The company's recent financial performance has been noteworthy, with revenue growth of 2.55% over the last twelve months as of Q3 2024, reaching $1.55 billion. This growth is complemented by a robust gross profit margin of 45.2%, indicating strong pricing power and operational efficiency.
InvestingPro Tips highlight that ZWS is expected to see net income growth this year, a positive sign for potential investors. Additionally, the company operates with a moderate level of debt, which may provide financial flexibility in a dynamic market environment.
However, it's worth noting that ZWS is trading at a high P/E ratio of 49.11, suggesting that the stock may be priced at a premium compared to its earnings. This valuation metric aligns with another InvestingPro Tip indicating that the company is trading at a high earnings multiple.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for ZWS, providing a deeper understanding of the company's financial health and market position.
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