Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Aimee Katz, 10% Owner at Zurn Elkay Water (NYSE:ZWS), reported an insider sell on April 24, according to a new SEC filing.
What Happened: Katz's recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled the sale of 249,582 shares of Zurn Elkay Water. The total transaction value is $7,996,607.
The latest market snapshot at Thursday morning reveals Zurn Elkay Water shares down by 0.0%, trading at $32.12.
Delving into Zurn Elkay Water's Background Zurn Elkay Water Solutions Corp designs procure, manufactures, and markets a range of clean water solutions for drinking water, hygiene, and sustainable water management. The Zurn Elkay product portfolio includes professional-grade water control and safety, water distribution and drainage, drinking water, finish plumbing, hygienic, environmental and site works products for public and private spaces.
Understanding the Numbers: Zurn Elkay Water's Finances Revenue Growth: Zurn Elkay Water's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 4.85%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.
Profitability Metrics: Unlocking Value
- Gross Margin: The company maintains a high gross margin of 43.69%, indicating strong cost management and profitability compared to its peers.
- Earnings per Share (EPS): Zurn Elkay Water's EPS reflects a decline, falling below the industry average with a current EPS of 0.08.
Valuation Metrics: A Closer Look
- Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 49.42 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.
- Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 3.7 as compared to the industry average, the stock might be considered overvalued based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Zurn Elkay Water's EV/EBITDA ratio stands at 20.99, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.
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Why Insider Transactions Are Important Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
Navigating the World of Insider Transaction Codes Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Zurn Elkay Water's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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