A recent filing with the Securities and Exchange Commission revealed that Aimee Katz, a significant shareholder in Zurn Elkay Water Solutions Corp (NYSE:ZWS), has sold a substantial number of shares in the company. Katz parted with 36,938 shares at an average price of $30.44, resulting in a total transaction value of approximately $1.12 million.
The shares were sold on June 20, 2024, at prices ranging from $30.40 to $30.51. The transactions were executed in multiple tranches within this price range, as detailed in the SEC filing. Following the sale, Katz's indirectly held stake in the company amounts to 23,682,793 shares.
According to the footnotes in the SEC filing, the shares sold by Katz are associated with Ice Mountain LLC, for which Katz is a seat holder on the voting committee with the power to direct the entity. Despite the sale, Katz may still be deemed to beneficially own the shares held by Ice Mountain, as well as additional holdings by Katz New VBA Trust and Katz Voting Stock Trust, due to her position on their respective voting committees.
Investors often monitor insider transactions as they can provide insights into the company's financial health and future prospects. Zurn Elkay Water Solutions Corp, which operates within the general industrial machinery and equipment sector, has not commented on the transactions.
The sale represents a notable change in Katz's investment in Zurn Elkay Water Solutions Corp, but the reasons behind the transaction have not been disclosed. Shareholders and potential investors will likely keep an eye on future filings for any further changes in insider ownership that might signal shifts in the company's strategic direction or financial outlook.
In other recent news, Zurn Elkay Water Solutions Corporation announced a strong financial performance for the first quarter, 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%, with a margin expansion of 460 basis points. Based on these results, Zurn Elkay raised its full-year margin outlook and confirmed plans for share repurchases.
The company has also declared a quarterly dividend of $0.08 per share, scheduled to be paid in cash in June to shareholders on record by May. This is a part of Zurn Elkay's regular dividend payments to its shareholders, demonstrating its continuous efforts to deliver value.
These recent developments include the successful launch of new products such as the Hydro-X Sensor Flush Valve and a focus on sustainability. The company's strategies for growth include a focus on the drinking water and filtration segments, which are expected to see double-digit growth rates. Despite conservative guidance for the latter half of the year, Zurn Elkay remains 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%.
InvestingPro Insights
In light of recent insider transactions at Zurn Elkay Water Solutions Corp (NYSE:ZWS), investors seeking a deeper understanding of the company's financial metrics can turn to InvestingPro for real-time data and expert analysis. Zurn Elkay's market capitalization stands at $5.21 billion, with a P/E ratio of 42.33, indicating investors are currently paying $42.33 for every dollar of earnings the company generates. The adjusted P/E ratio for the last twelve months as of Q1 2024 is slightly lower at 37.44, which may suggest a better earnings outlook going forward.
The company's revenue growth over the last twelve months as of Q1 2024 was 8.34%, reflecting a steady increase in sales. Moreover, Zurn Elkay Water Solutions Corp boasts a robust gross profit margin of 43.69%, showcasing its ability to maintain profitability amidst operational costs. These figures are complemented by a PEG ratio of 0.4, which could signal that the company's earnings growth is not fully reflected in its current share price, potentially indicating an investment opportunity.
An InvestingPro Tip highlights that Zurn Elkay has a perfect Piotroski Score of 9, which is a strong indicator of the company's financial stability. Additionally, analysts predict the company will be profitable this year, with a notable number of analysts revising their earnings estimates upwards for the upcoming period. This consensus among analysts could be a positive sign for investors considering Zurn Elkay's stock.
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