In a recent transaction, insiders at Zurn Elkay Water Solutions Corp (NYSE:ZWS) sold a significant amount of company stock, totaling over $1.49 million. The sales occurred on two separate dates, with prices for the shares ranging between $32.20 and $32.24.
The transactions were carried out by Ice Mountain LLC, Cascade Bay LLC, and Katz 2004 DYN Trust, all of which are related entities. On April 11, 2024, a total of 1,223 shares were sold at a weighted average price of $32.20. The following day, an additional 45,009 shares were traded at a weighted average price of $32.24. The sales were part of planned transactions by the entities, which have indirect beneficial ownership of the shares through complex ownership structures.
According to the footnotes provided in the SEC filing, the prices reported are weighted averages, and the shares were sold in multiple transactions at varying prices within the stated ranges. The entities have expressed their willingness to provide full information regarding the number of shares sold at each separate price upon request.
The shares sold are directly held by Ice Mountain LLC, with Cascade Bay LLC acting as the manager and sole Class A Member. Katz 2004 DYN Trust serves as the Special Assets Manager of Cascade Bay and, along with Cascade Bay, may be deemed to beneficially own the shares directly held by Ice Mountain.
These transactions have been publicly disclosed as per regulatory requirements, and provide insight into the trading activities of significant shareholders within the company. Zurn Elkay Water Solutions Corp, which specializes in water solutions and is classified under the General Industrial Machinery & Equipment industry, has not provided any specific reason for these sales. The business addresses for the reporting entities are all care of The Northern Trust (NASDAQ:NTRS) Company in Chicago, IL.
Investors and market watchers often pay close attention to insider trading patterns as they may provide valuable signals about the company's current state and future prospects.
InvestingPro Insights
Zurn Elkay Water Solutions Corp (NYSE:ZWS) has caught the eye of investors not only due to recent insider trading activity but also because of its financial performance and market valuation. According to InvestingPro data, ZWS currently boasts a market capitalization of $5.48 billion, reflecting its position within the General Industrial Machinery & Equipment industry. The company's P/E ratio stands at 48.55, which adjusts to 44.17 when considering the last twelve months as of Q4 2023. This valuation metric suggests that investors are willing to pay a higher price for the company's earnings, possibly due to expectations of future growth.
An InvestingPro Tip highlights that ZWS is trading at a low P/E ratio relative to near-term earnings growth, indicating that its stock may be undervalued given its growth potential. This could be particularly relevant to investors considering the recent insider transactions. Additionally, the company's revenue has seen a healthy increase, with a growth rate of 19.4% over the last twelve months as of Q4 2023, and a quarterly revenue growth of 4.85% for Q4 2023.
Investors looking for a deeper dive into Zurn Elkay Water Solutions Corp's financials and future prospects can find more InvestingPro Tips on the company's profile. Currently, there are 9 additional tips available, which could provide further insights into whether the insider sales align with the company's overall financial health and trajectory. To access these insights and benefit from an exclusive offer, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Lastly, it's worth noting that analysts predict the company will be profitable this year, which is consistent with the company's strong return over the last year, as indicated by a 57.05% one-year price total return as of the data available. This performance, coupled with the company's solid revenue growth and profitability over the last twelve months, paints a picture of a company that is not only expanding its financial base but also rewarding its investors with substantial returns.
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