In a recent transaction, an insider at Zurn Elkay Water Solutions Corp (NYSE:ZWS) has sold a significant number of shares in the company. Aimee Katz, a large shareholder, offloaded 154,433 shares at an average price of $30.53, culminating in a total sale value of approximately $4.7 million. This sale took place on June 18, 2024, as revealed in a regulatory filing with the Securities and Exchange Commission.
The transaction was conducted in multiple parts, with share prices ranging from $30.40 to $30.85. The disclosed average price of $30.53 represents a weighted mean of these varying sale prices. Aimee Katz, through her connection to different trusts and entities, has a complex relationship with the shares sold. Specifically, the shares are directly held by Ice Mountain LLC, with Katz having the power to direct sales through her role in associated entities.
Following the sale, Katz still retains a substantial interest in Zurn Elkay Water Solutions Corp, indirectly holding 23,719,731 shares. These shares are managed through various trusts and entities, with Katz having a seat on their respective voting committees, giving her influence over investment decisions.
Investors often watch insider transactions for insights into company performance and management's perspective on the stock's valuation. While the sale of shares by an insider might raise questions about the insider's confidence in the company, it is also a common practice for insiders to sell shares for personal financial management, estate planning, or diversification reasons.
Zurn Elkay Water Solutions Corp, headquartered in Milwaukee, Wisconsin, operates in the industrial machinery and equipment sector. The company's stock trades on the New York Stock Exchange under the ticker symbol ZWS. As of the date of the reported transaction, Zurn Elkay Water Solutions Corp has not provided any official comment on the sale.
In other recent news, Zurn Elkay Water Solutions Corporation reported robust financial performance in Q1 with a significant increase in sales and a 24% rise in adjusted EBITDA. The company has raised its full-year margin outlook and confirmed plans for share repurchases. Zurn Elkay's CEO, Todd Adams, highlighted the company's focus on the drinking water and filtration segments, which are expected to see double-digit growth rates. Furthermore, the company is projecting an adjusted EBITDA margin between 24.5% and 25% with approximately $250 million in free cash flow expected.
In addition to their earnings report, Zurn Elkay also declared a quarterly dividend of $0.08 per share, scheduled to be paid in June to shareholders on record by May. This recent development is part of the company's regular dividend payments to its stockholders.
These recent announcements, including the earnings results and the dividend declaration, reflect Zurn Elkay's ongoing efforts to deliver value to its shareholders while maintaining its commitment to sustainable practices in water management. The company's product portfolio includes items designed for both public and private spaces, encompassing water safety and control, flow systems, hygienic products, and filtered drinking water solutions.
InvestingPro Insights
Following the recent insider share sale at Zurn Elkay Water Solutions Corp (NYSE:ZWS), analyzing the company's financial health and stock performance can provide investors with a broader context. According to InvestingPro data, Zurn Elkay Water Solutions has a market capitalization of $5.22 billion, reflecting its place in the market. The company's P/E ratio stands at 42.29, indicating how much investors are willing to pay for a dollar of earnings, which is a key metric for valuation. Adjusting for the last twelve months as of Q1 2024, the P/E ratio slightly decreases to 37.69.
InvestingPro Tips highlight that Zurn Elkay Water Solutions has a perfect Piotroski Score of 9, suggesting strong financial health. Additionally, the company is expected to be profitable this year, with net income forecasted to grow. This is supported by the sentiment of analysts, with 6 having revised their earnings upwards for the upcoming period. These positive indicators may be of interest to investors considering the recent insider trading activity.
For those looking to delve deeper into the financial metrics and forecasts for Zurn Elkay Water Solutions Corp, there are additional InvestingPro Tips available. By visiting https://www.investing.com/pro/ZWS, investors can access further insights and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With this comprehensive tool, investors can make more informed decisions based on the latest data and expert analysis.
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