MILWAUKEE—Mark W. Peterson, Chief Administrative Officer of Zurn Elkay Water Solutions Corp (NYSE:ZWS), recently sold 40,000 shares of the company's common stock. The shares were sold at a weighted average price of $37.1638, totaling approximately $1.49 million. Following this transaction, Peterson holds 360,727 shares directly.
In addition to these direct holdings, Peterson also owns 4,921 shares indirectly through a 401(k) plan. Furthermore, he retains stock options for 33,481 shares at an exercise price of $33.05, with an expiration date in October 2031.
In other recent news, Zurn Elkay Water Solutions Corporation reported robust growth in its Third Quarter 2024 Earnings Call. The company surpassed its guidance, with a 4% core growth, a 9% increase in adjusted EBITDA, and an improvement in margins to 25.6%. They also raised their full-year free cash flow outlook to approximately $260 million and increased their quarterly dividend by 12.5%. Total (EPA:TTEF) Q3 sales reached $410 million, driven by growth in non-residential markets, while residential sales remained steady.
Zurn Elkay also highlighted its commitment to sustainability, particularly in Michigan's clean drinking water initiatives. Looking forward, the company expects low single-digit core sales growth in Q4 2024 and maintains a strong EBITDA margin of 25% year-to-date. Confidence in market resilience and growth potential is supported by strong institutional and commercial construction indicators.
The company's capital allocation strategy is focused on increasing shareholder returns and exploring merger and acquisition opportunities. These recent developments underscore Zurn Elkay's strategic initiatives aimed at sustaining growth and profitability amidst market complexities.
InvestingPro Insights
While Mark W. Peterson's recent stock sale might raise eyebrows, a closer look at Zurn Elkay Water Solutions Corp's (NYSE:ZWS) financial metrics and market performance provides additional context for investors.
According to InvestingPro data, ZWS boasts a market capitalization of $6.77 billion and has demonstrated strong financial performance. The company's revenue for the last twelve months as of Q3 2024 stood at $1.55 billion, with a gross profit margin of 45.2%. This solid financial foundation is complemented by a robust EBITDA of $337 million for the same period.
InvestingPro Tips highlight that ZWS's net income is expected to grow this year, and analysts predict the company will remain profitable. These positive indicators suggest that the company's fundamentals remain strong despite the insider sale.
Moreover, ZWS has shown impressive market performance, with a 27.07% price total return over the past three months and a 36.65% return over the past year. The stock is currently trading near its 52-week high, with its price at 98.37% of the peak.
It's worth noting that ZWS operates with a moderate level of debt and its liquid assets exceed short-term obligations, indicating financial stability. However, investors should be aware that the stock is trading at high earnings and revenue multiples, which may suggest a premium valuation.
For those seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for ZWS, providing a deeper understanding of the company's financial health and market position.
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