In a recent transaction, an investor of Zurn Elkay Water Solutions Corp (NYSE:ZWS) sold a significant number of shares, cashing in over $4.7 million. The investor, April Jalazo, who is associated with the company as a ten percent owner, parted with a total of 154,433 shares at an average price of $30.53 each.
The sales took place on June 18, 2024, with individual shares being sold at prices ranging from $30.40 to $30.85. This range indicates a slight fluctuation in the stock's selling price during the time of the transactions.
Following the sale, it has been noted that the shares are indirectly held by entities such as Ice Mountain LLC, Cascade Bay LLC, and the Katz 2004 DYN Trust, with April Jalazo holding a position on the voting committees of these entities. This structure may deem her to beneficially own the shares sold, although she disclaims any beneficial interest except to the extent of her pecuniary interest.
The remaining holdings of April Jalazo in Zurn Elkay Water Solutions Corp include 23,719,731 shares held by Ice Mountain LLC, 14,101 shares by Katz New VBA Trust, and 236,387 shares by Katz Voting Stock Trust. These holdings are also indirectly owned, with April Jalazo having a say in the voting power of the respective trusts and entities.
Investors often keep a close eye on insider transactions as they can provide insights into how the top stakeholders view the company's stock value and future performance. The sale by April Jalazo represents a notable move in the ownership of Zurn Elkay Water Solutions Corp, a company specializing in general industrial machinery and equipment.
In other recent news, Zurn Elkay Water Solutions Corporation revealed strong Q1 results, surpassing expectations with a 400 basis point increase in sales year-over-year, primarily driven by growth in non-residential markets. The company's adjusted EBITDA rose by 24%, expanding the margin by 460 basis points. As a result, Zurn Elkay raised its full-year margin outlook and confirmed plans for share repurchases. The company is 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.
In other financial developments, Zurn Elkay has declared a quarterly dividend of $0.08 per share, scheduled to be paid in cash in June to shareholders on record by May. This announcement is part of the company's regular dividend payments to its stockholders and is in line with its continuous efforts to deliver value to its shareholders.
These developments are the latest in a series of recent actions by Zurn Elkay, which also highlighted its successful product launches and ongoing commitment to sustainability. The company's CEO, Todd Adams, provided insights into the company's strategies for growth, including a focus on the drinking water and filtration segments, which are expected to see double-digit growth rates. As always, these forward-looking statements are subject to risks and uncertainties, and actual results may differ from those currently anticipated.
InvestingPro Insights
Amidst the recent insider transactions at Zurn Elkay Water Solutions Corp (NYSE:ZWS), investors considering the company's stock can gain additional insights from InvestingPro metrics and tips. Zurn Elkay Water Solutions, with a market capitalization of $5.22 billion, is trading at a forward P/E ratio of 37.69, reflecting investor expectations of the company's earnings over the next twelve months as of Q1 2024. The company's PEG ratio during the same period stands at 0.4, suggesting that the stock may be undervalued relative to its earnings growth.
One of the notable InvestingPro Tips for Zurn Elkay Water Solutions is its perfect Piotroski Score of 9, which indicates a strong financial position. Additionally, analysts have revised their earnings upwards for the upcoming period, suggesting a positive outlook on the company's performance. This aligns with the observed revenue growth of 8.34% over the last twelve months as of Q1 2024, as well as the company's gross profit margin of 43.69%, indicating robust profitability.
For investors seeking further analysis and guidance, there are additional InvestingPro Tips available. The platform offers insights such as the company's low price volatility, which may appeal to investors looking for stability, and the fact that liquid assets exceed short-term obligations, ensuring financial flexibility. With analysts predicting profitability for the year and a strong return over the last five years, Zurn Elkay Water Solutions appears to be on solid footing.
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