MILWAUKEE—Sudhanshu Chhabra, Vice President of Zurn Elkay Water Solutions Corp (NYSE:ZWS), recently sold a portion of his holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, Chhabra sold 2,268 shares of common stock on November 7, 2024, at a weighted average price of $39.15 per share. This transaction totaled approximately $88,792.
The sale was conducted to satisfy tax withholding obligations related to the vesting of performance stock units. Following this transaction, Chhabra retains direct ownership of 84,937 shares of Zurn Elkay common stock.
Additionally, Chhabra acquired 6,808 shares of common stock at no cost upon the vesting of performance stock units, reflecting the company's performance over a three-year period. This acquisition increased his total direct holdings to 87,205 shares before the sale.
Zurn Elkay Water Solutions Corp, a prominent player in the general industrial machinery and equipment sector, continues to be a focus for investors monitoring executive stock transactions.
In other recent news, Zurn Elkay Water Solutions Corporation has reported a strong performance in its Third Quarter 2024 Earnings Call. The company exceeded its guidance, achieving a 4% core growth, a 9% increase in adjusted EBITDA, and a margin improvement. Zurn Elkay also raised its full-year free cash flow outlook to approximately $260 million and increased its quarterly dividend by 12.5%. Total (EPA:TTEF) Q3 sales reached $410 million, driven by growth in non-residential markets.
The company expects low single-digit core sales growth in Q4 2024 and maintains a strong EBITDA margin of 25% year-to-date. Projections for non-residential construction starts in 2025 show improvement, with the company cautiously optimistic until bid conversions occur. Zurn Elkay has a capital allocation strategy focused on increasing shareholder returns and exploring M&A opportunities.
Despite some concerns about market projections, the company's historical performance shows a consistent ability to achieve core growth. The drinking water segment continues to show double-digit growth, and supply chain repositioning efforts are projected to contribute an additional $5 million to $10 million at full run rate by 2026. These are recent developments, and further insights into Zurn Elkay's progress and strategic direction are expected in early February.
InvestingPro Insights
Zurn Elkay Water Solutions Corp (NYSE:ZWS) has been showing strong performance, as evidenced by its recent stock price movements and financial metrics. According to InvestingPro data, the company has seen a robust 29.59% price total return over the past three months, indicating significant investor confidence.
This positive sentiment is further supported by InvestingPro Tips, which highlight that net income is expected to grow this year, and seven analysts have revised their earnings upwards for the upcoming period. These factors align with the company's recent executive stock transactions and could explain the timing of Vice President Sudhanshu Chhabra's stock sale for tax purposes.
The company's financial health appears solid, with InvestingPro data showing a market capitalization of $6.63 billion and a revenue of $1.55 billion over the last twelve months as of Q3 2024. Zurn Elkay's gross profit margin stands at an impressive 45.2%, indicating strong pricing power in its industry.
However, investors should note that the stock is trading at a relatively high P/E ratio of 42.66, which an InvestingPro Tip suggests may be high relative to near-term earnings growth. This valuation metric could be important for investors to consider in light of the recent insider stock transaction.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Zurn Elkay Water Solutions Corp, providing a deeper insight into the company's financial position and market performance.
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