In a recent transaction, a significant shareholder of Zurn Elkay Water Solutions Corp (NYSE:ZWS) has sold a substantial number of shares in the company. The transaction, which took place on June 12, involved the sale of 194,081 shares at an average price of $31.55, amounting to a total value of $6,123,255.
The shares were sold in multiple transactions with prices ranging from $31.25 to $31.74. The seller, April Jalazo, is associated with several entities that hold Zurn Elkay Water Solutions stock. According to the footnotes in the SEC filing, the shares are directly held by Ice Mountain LLC, with Cascade Bay LLC as the manager and sole Class A Member. Additionally, the Katz 2004 DYN Trust is the Special Assets Manager with the power to direct Cascade Bay. April Jalazo, being a seat holder on the voting committee of DYN, has the power to direct DYN and may be deemed to beneficially own the shares held by Ice Mountain.
April Jalazo also has similar roles with the Katz New VBA Trust and the Katz Voting Stock Trust, which hold 14,101 and 236,387 shares, respectively. She may be deemed to beneficially own the shares held by these entities as well. However, Jalazo disclaims beneficial interest in the shares except to the extent of her pecuniary interest.
This sale represents a significant transaction by an insider of the company, and it provides the market with insight into insider activity at Zurn Elkay Water Solutions Corp. Following the transaction, the insider's remaining stake in the company is substantial, indicating continued alignment with the company's prospects and performance.
Investors and market watchers often pay close attention to insider transactions as they can provide valuable signals about the health and future direction of a company. While the reasons for such sales can vary, they are always a point of interest for those looking to understand the inner workings of a company and the confidence insiders have in its future.
In other recent news, Zurn Elkay Water Solutions Corporation has reported robust financial performance in Q1, with key metrics surpassing expectations. Sales increased by 400 basis points year-over-year, primarily driven by growth in non-residential markets, and adjusted EBITDA rose by 24%. In light of these results, Zurn Elkay raised its full-year outlook and confirmed plans for share repurchases.
The company also announced a quarterly dividend of $0.08 per share, scheduled to be paid in cash in June to shareholders on record by May. This dividend declaration is part of Zurn Elkay's continuous efforts to deliver value to its shareholders.
Despite conservative guidance for the latter half of the year, the company 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%. These are the latest developments in Zurn Elkay's business strategy, reflecting its commitment to growth and sustainability.
InvestingPro Insights
As investors digest the news of the recent insider sale at Zurn Elkay Water Solutions Corp (NYSE:ZWS), it's crucial to consider the company's financial health and market performance to gain a comprehensive understanding of its investment potential. Zurn Elkay Water Solutions has demonstrated a strong financial position, with a perfect Piotroski Score of 9, indicating a robust financial situation and suggesting that the company is well-managed with healthy operating efficiencies.
Adding to the positive outlook, analysts predict the company will be profitable this year, with a net income expected to grow. This is further supported by the fact that 6 analysts have revised their earnings upwards for the upcoming period, reflecting optimism about the company's earnings potential.
From a valuation standpoint, Zurn Elkay Water Solutions is trading at a P/E Ratio of 42.75, which adjusts to 38.08 for the last twelve months as of Q1 2024. This is paired with an attractive PEG Ratio of 0.41 for the same period, suggesting that the company's earnings growth may not be fully reflected in its current price. Additionally, the company maintains a solid revenue growth of 8.34% over the last twelve months as of Q1 2024, highlighting its ability to increase its top-line figures steadily.
Investors interested in further insights can find additional InvestingPro Tips on Zurn Elkay Water Solutions Corp, which can be accessed at InvestingPro's dedicated page for ZWS. With these tips, investors can delve deeper into the company's metrics and make more informed decisions. For those looking to unlock the full suite of features, including comprehensive analysis and exclusive data, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are currently 11 additional InvestingPro Tips available, providing a wealth of information for a thorough investment evaluation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.