In a recent transaction on June 13, 2024, Aimee Katz, a significant shareholder in Zurn Elkay Water Solutions Corp (NYSE:ZWS), sold 687 shares of the company's common stock at a price of $31.25 per share, totaling $21,468.
The sale was reported in a regulatory filing with the Securities and Exchange Commission. Following the transaction, Katz's ownership in the company includes 23,874,164 shares, which are held indirectly through various entities. According to the footnotes in the filing, these shares are held by Ice Mountain LLC, where Katz has a seat on the voting committee with the power to direct the entity's decisions regarding the shares. Katz disclaims beneficial interest in these shares, except to the extent of her pecuniary interest.
In addition to the shares held by Ice Mountain LLC, Katz is associated with the Katz New VBA Trust and the Katz Voting Stock Trust, which hold 14,101 and 236,387 shares, respectively. Katz also has the power to direct decisions for these entities and disclaims beneficial interest in these shares, except for her pecuniary interest.
Zurn Elkay Water Solutions Corp, headquartered in Milwaukee, Wisconsin, operates in the general industrial machinery and equipment industry. The company has undergone several name changes in the past, previously known as Zurn Water Solutions Corp and Rexnord (NYSE:ZWS) Corp.
The transaction comes as part of the regular financial disclosures required by company insiders and significant shareholders. Investors often monitor these sales and purchases as they provide insights into executives' and major shareholders' perspectives on the company's stock value.
For further details on Katz's holdings and transactions, interested parties can refer to the full SEC Form 4 filing.
In other recent news, Zurn Elkay Water Solutions Corporation has reported strong first-quarter results, exceeding expectations in sales, earnings, and cash flow. The company witnessed a 400 basis point increase in Q1 sales year-over-year, driven mainly by growth in non-residential markets. Adjusted EBITDA grew by 24%, with a margin expansion of 460 basis points. Given these results, Zurn Elkay raised its full-year margin outlook and confirmed plans for share repurchases.
In addition to these financial highlights, the company has declared a quarterly dividend of $0.08 per share, scheduled for June payout. This announcement is part of Zurn Elkay's ongoing efforts to deliver value to its shareholders.
Furthermore, the company has successfully launched new products, such as the Hydro-X Sensor Flush Valve, and continues its commitment to sustainability. In terms of future expectations, Zurn Elkay projects low single-digit pro forma core sales growth for Q2 and an adjusted EBITDA margin between 24.5% and 25%, with approximately $250 million in free cash flow expected. These recent developments underscore Zurn Elkay's robust performance and growth strategies in the water solutions market.
InvestingPro Insights
Zurn Elkay Water Solutions Corp (NYSE:ZWS) has been showing promising financial metrics that may interest investors looking for growth and stability. With a market capitalization of $5.32 billion, the company stands as a significant player in the industrial machinery and equipment sector. Notably, ZWS has a perfect Piotroski Score of 9, indicating strong financial health and suggesting that the company is operating efficiently with robust profitability, liquidity, and leverage characteristics.
InvestingPro Tips highlight that ZWS is expected to see an increase in net income this year, with 6 analysts having revised their earnings upwards for the upcoming period. This optimism is grounded in the company’s solid performance over the last twelve months, where it has been profitable and delivered a strong return over the last five years.
From a valuation perspective, ZWS is trading at a P/E ratio of 43.09, which adjusts to 38.29 on a last twelve months basis as of Q1 2024. This is particularly interesting when paired with the company's low PEG Ratio of 0.41 for the same period, suggesting that its stock might be undervalued relative to its earnings growth.
For investors who are keen on stability, ZWS generally trades with low price volatility, and its liquid assets exceed short-term obligations, indicating a comfortable liquidity position. Additionally, the company operates with a moderate level of debt, which can be an attractive feature for risk-averse investors.
For those interested in further insights and tips on Zurn Elkay Water Solutions Corp, there are additional InvestingPro Tips available. Users can find these valuable insights by visiting InvestingPro’s dedicated ZWS page and can use the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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