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, identified as a ten percent owner, divested 194,081 shares of common stock at an average price of $31.55, totaling approximately $6.1 million. The sales took place on June 12, 2024, as reported in the latest SEC filings.
Investors tracking insider transactions might note that the shares were sold in multiple transactions with prices ranging from $31.25 to $31.74. The reported amount represents a weighted average price for the total shares sold. Following the sale, Katz is still associated with a substantial holding of 23,874,851 shares in Zurn Elkay Water Solutions Corp, indirectly through various entities.
The shares sold were indirectly held by Ice Mountain LLC, with Katz having a role in the entities that manage or have voting power over these shares. According to the footnotes in the SEC filing, Katz may be deemed to beneficially own the shares held by Ice Mountain LLC, Katz New VBA Trust, and Katz Voting Stock Trust. However, Katz disclaims beneficial ownership of these shares except to the extent of her pecuniary interest.
Zurn Elkay Water Solutions Corp, which operates in the general industrial machinery and equipment sector, has seen its stock being actively traded by insiders, which is often scrutinized by investors for insights into company performance and management confidence. The recent transaction by Katz may attract attention from the investment community as they assess the potential implications for the company's stock performance.
Investors and stakeholders in Zurn Elkay Water Solutions Corp can obtain full information regarding the number of shares sold at each separate price within the reported ranges upon request to the company or the SEC. The details provided in the SEC Form 4 filing offer transparency into the transactions conducted by insiders, such as Katz, allowing market participants to stay informed about significant insider trades.
In other recent news, Zurn Elkay Water Solutions Corporation has announced a strong Q1 performance, exceeding expectations in sales, earnings, and cash flow. The company reported a 400 basis point increase in Q1 sales year-over-year and a 24% growth in adjusted EBITDA. Consequently, Zurn Elkay has raised its full-year margin outlook and confirmed plans for share repurchases.
In addition to the robust financial performance, the company has set a $0.08 per share quarterly dividend, scheduled to be paid in June. This move is part of Zurn Elkay's ongoing efforts to deliver value to its shareholders.
These recent developments reflect the company's commitment to growth and sustainability in its operations. Zurn Elkay's strategies for growth include a focus on the drinking water and filtration segments, which are projected to see double-digit growth rates. According to the company's outlook, sustained gross margin improvement is anticipated, with low single-digit pro forma core sales growth expected for Q2.
Investors are reminded that forward-looking statements made by the company are subject to risks and uncertainties. As always, shareholders and interested parties are encouraged to consult the company's filings with the SEC for a comprehensive understanding of the business's performance and risk factors.
InvestingPro Insights
Zurn Elkay Water Solutions Corp (NYSE:ZWS) has demonstrated a solid financial posture, marked by a Piotroski Score of 9, indicating overall financial health and stability. This perfect score, a rarity among companies, suggests that ZWS is managing its operations efficiently in the face of market challenges. Additionally, analysts have taken a positive stance on the company's earnings potential, with 6 analysts revising their earnings expectations upwards for the upcoming period. This optimism is reflected in the company's stock performance, with a robust 22.13% one-year price total return, showcasing investor confidence.
From a valuation standpoint, ZWS's P/E ratio stands at 42.75, which, when adjusted for the last twelve months as of Q1 2024, shifts to a slightly lower figure of 38.08. This adjustment aligns with the company's near-term earnings growth, presenting a potentially attractive entry point for investors considering the PEG ratio of 0.41—a metric that suggests the stock may be undervalied relative to its earnings growth rate.
Zurn Elkay's commitment to maintaining a sound balance sheet is evident as its liquid assets exceed short-term obligations, which is a reassuring sign for stakeholders monitoring the company's liquidity and financial resilience. For investors seeking additional insights and tips, there are 10 more InvestingPro Tips available, which can be explored for a deeper analysis of ZWS's financial health and market prospects. Access these valuable tips at https://www.investing.com/pro/ZWS and don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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