Benzinga - by Benzinga Insights, Benzinga Staff Writer.
April Jalazo, 10% Owner at Zurn Elkay Water (NYSE:ZWS), reported an insider sell on April 18, according to a new SEC filing.
What Happened: Jalazo opted to sell 250,000 shares of Zurn Elkay Water, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The transaction's total worth stands at $8,019,414.
Monitoring the market, Zurn Elkay Water's shares down by 0.25% at $31.53 during Friday's morning.
About Zurn Elkay Water 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 revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 4.85%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.
Interpreting Earnings Metrics:
- 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 is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.08.
Market Valuation:
- Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 53.58 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: A higher-than-average P/S ratio of 3.66 suggests overvaluation in the eyes of investors, considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Zurn Elkay Water's EV/EBITDA ratio stands at 21.52, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.
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Why Insider Activity Matters in Finance While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
Breaking Down the Significance of 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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