In a recent move, Aimee Katz, a significant shareholder in Zurn Elkay Water Solutions Corp (NYSE:ZWS), has sold a portion of her holdings in the company. Katz executed a sale of 8,240 shares at a weighted average price of $29.14, totaling over $240,000.
The transaction, which took place on July 1st, was disclosed in a filing with the Securities and Exchange Commission. The shares were sold in multiple transactions with prices ranging from $29.00 to $29.27. The exact number of shares sold at each price within this range can be provided by Katz upon request, as indicated in the filing's footnotes.
Following the sale, Katz still holds a substantial number of shares in Zurn Elkay Water Solutions Corp indirectly through various entities. According to the footnotes in the SEC filing, Katz may be deemed to beneficially own shares held by Ice Mountain LLC, Katz New VBA Trust, and Katz Voting Stock Trust due to her positions within these entities. However, she disclaims beneficial interest in these shares except to the extent of her pecuniary interest.
Investors often look to insider transactions as an indicator of confidence in the company's future prospects. While sales by insiders are not uncommon, they can sometimes signal how insiders view the stock's valuation or potential future performance.
Zurn Elkay Water Solutions Corp, headquartered in Milwaukee, Wisconsin, specializes in water solutions and is recognized in the general industrial machinery and equipment sector. The company has undergone several name changes over the years, previously known as Zurn Water Solutions Corp and Rexnord (NYSE:ZWS) Corp.
The details of the transaction are publicly available and provide transparency into the trading activities of the company's significant shareholders. As with all insider transactions, this sale is reported in compliance with SEC regulations to ensure fairness and transparency in the market.
In other recent news, Zurn Elkay Water Solutions Corporation has been making substantial strides in its financial performance. The company recently announced a quarterly dividend of $0.08 per share, scheduled for payout in June. This comes as part of Zurn Elkay's regular dividend payments to its shareholders, a testament to the company's ongoing commitment to delivering value.
Moreover, Zurn Elkay reported strong first-quarter results, exceeding expectations in sales, earnings, and cash flow. The company saw a 400 basis point increase in sales year-over-year, primarily driven by growth in non-residential markets. Alongside this, the adjusted EBITDA grew by 24%, leading to a 460 basis point expansion in the margin.
In light of these promising results, Zurn Elkay has raised its full-year margin outlook and confirmed plans for share repurchases. The company has also projected low single-digit pro forma core sales growth for the second quarter and an adjusted EBITDA margin between 24.5% and 25%.
These developments demonstrate Zurn Elkay's robust financial performance and its commitment to shareholder value. The company's focus on growth and sustainability, as evidenced by its recent product launches and financial results, sets it apart in the industry.
InvestingPro Insights
In light of the recent insider transaction involving Aimee Katz and her sale of Zurn Elkay Water Solutions Corp (NYSE:ZWS) shares, potential and current investors may seek additional insights to gauge the company's financial health and future prospects. According to data from InvestingPro, Zurn Elkay Water Solutions Corp boasts a market capitalization of approximately $5.12 billion, reflecting its substantial size in the industrial machinery and equipment sector.
InvestingPro Tips highlight a few key points that could be of interest to investors. Notably, ZWS has a perfect Piotroski Score of 9, suggesting strong financial health. Additionally, analysts predict the company will be profitable this year, which could be a reassuring signal following Katz's sale. For investors curious about more in-depth analysis and looking to make informed decisions, there are 10 InvestingPro Tips available, which can be found at: https://www.investing.com/pro/ZWS. These tips could provide valuable context to insider transactions and the company's valuation.
From a valuation standpoint, ZWS is trading at a P/E ratio of 41.22, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at 36.8. The PEG Ratio for the same period stands at 0.39, which could indicate that the stock is trading at a low price relative to near-term earnings growth. This might be particularly relevant for investors considering the recent insider sale and pondering the stock's current valuation.
For those interested in exploring these metrics further and discovering additional InvestingPro Tips, a subscription to InvestingPro can be obtained with up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription using the coupon code PRONEWS24.
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