Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A large exercise of company stock options by Thomas Christopoul, Board Member at Zurn Elkay Water (NYSE:ZWS) was disclosed in a new SEC filing on May 8, as part of an insider exercise.
What Happened: Christopoul, Board Member at Zurn Elkay Water, exercised stock options for 10,495 shares of ZWS stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The exercise price of the options was $14.41 per share.
Zurn Elkay Water shares are trading, exhibiting down of 0.0% and priced at $32.12 during Thursday's morning. This values Christopoul's 10,495 shares at $185,866.
Get to Know Zurn Elkay Water Better 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.
Financial Milestones: Zurn Elkay Water's Journey Revenue Growth: Zurn Elkay Water's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 0.46%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.
Evaluating Earnings Performance:
- Gross Margin: Achieving a high gross margin of 45.51%, the company performs well in terms of cost management and profitability within its sector.
- Earnings per Share (EPS): Zurn Elkay Water's EPS reflects a decline, falling below the industry average with a current EPS of 0.2.
Evaluating Valuation:
- Price to Earnings (P/E) Ratio: Zurn Elkay Water's current Price to Earnings (P/E) ratio of 49.42 is higher than the industry average, indicating that the stock may be overvalued according to 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): With an EV/EBITDA ratio of 20.99, the company's market valuation exceeds industry averages.
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Understanding the Significance of Insider Transactions Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.
Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Understanding Crucial Transaction Codes Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals 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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