Executives from Zurn Elkay Water Solutions Corp (NYSE:ZWS) have sold a significant amount of shares, according to recent regulatory filings. The transactions, which took place on June 18, 2024, involved the sale of 154,433 shares at a weighted average price of $30.53, totaling approximately $4.7 million.
The sales were conducted in multiple transactions with prices ranging from $30.40 to $30.85 per share. The filings indicate that the shares were sold directly by Ice Mountain LLC, which is managed and solely owned by Cascade Bay LLC. Additionally, Katz 2004 DYN Trust acts as the Special Assets Manager for Cascade Bay and may be deemed to beneficially own the shares held by Ice Mountain.
Following the sale, Ice Mountain LLC directly holds 23,719,731 shares of Zurn Elkay Water Solutions Corp. The transactions were signed off by John Thickens, Senior Vice President of Northern Trust (NASDAQ:NTRS) Company, on behalf of the reporting entities.
Investors and market watchers often pay close attention to insider sales as they may provide insights into executives' perspectives on the company's current valuation and future prospects. The recent sale by executives at Zurn Elkay Water Solutions Corp represents a notable change in their holdings and could be a point of interest for those following the company's stock performance.
In other recent news, Zurn Elkay Water Solutions Corporation has announced a strong financial performance in the first quarter, with sales increasing by 400 basis points year-over-year and a 24% rise in adjusted EBITDA. The company has subsequently raised its full-year margin outlook and confirmed plans for share repurchases. Among recent developments, Zurn Elkay has launched successful products such as the Hydro-X Sensor Flush Valve and has emphasized its commitment to sustainability.
Additionally, Zurn Elkay has declared a quarterly dividend of $0.08 per share, scheduled for a June payout. This is part of the company's regular dividend payments to its stockholders and reflects its continuous efforts to deliver value to its shareholders.
Despite a conservative guidance for the latter half of the year, Zurn Elkay remains optimistic about the full-year outlook, projecting 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 developments highlight the company's focus on growth and sustainability in the water management industry.
InvestingPro Insights
Amidst the news of Zurn Elkay Water Solutions Corp (NYSE:ZWS) executives selling a considerable amount of shares, a dive into the company's financial health and analysts' expectations might offer additional context to investors. According to InvestingPro data, Zurn Elkay Water Solutions Corp has a market capitalization of $5.22 billion and is trading at a price-to-earnings (P/E) ratio of 42.29. Notably, the company's P/E ratio for the last twelve months as of Q1 2024 is adjusted to 37.69, which suggests a slightly more favorable valuation in recent times.
Investors may also find the PEG ratio of 0.4 for the same period a compelling metric, as it indicates the stock might be undervalized relative to its earnings growth. Additionally, the company's revenue growth of 8.34% over the last twelve months signals a steady upward trajectory in earnings, which could be reassuring for shareholders concerned about the recent insider sales.
Turning to InvestingPro Tips, Zurn Elkay Water Solutions Corp demonstrates strong financial signals that could influence investor sentiment. The company not only has a perfect Piotroski Score of 9, reflecting high financial health, but it is also expected to grow its net income this year. Moreover, the stock has been characterized by low price volatility, which might appeal to risk-averse investors. For those looking for more detailed analysis, InvestingPro offers additional insights, including that six analysts have revised their earnings upwards for the upcoming period, and the company is trading at a low P/E ratio relative to near-term earnings growth. In total, there are 11 InvestingPro Tips available for Zurn Elkay Water Solutions Corp, which can be accessed for those seeking a deeper understanding of the company's prospects.
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