In a recent transaction, an insider at Zurn Elkay Water Solutions Corp (NYSE:ZWS) sold a significant number of shares in the company. The insider, identified as a ten percent owner, parted with 8,629 shares at an average price of $30.40, culminating in a total sale value of over $262,000. The transactions took place on June 21, 2024, and were disclosed to the Securities and Exchange Commission in a Form 4 filing.
The sale price of the shares was within a narrow range, from $30.40 to $30.42, indicating a consistent market value at the time of the transactions. Following the sale, the insider's directly associated holdings in Zurn Elkay Water Solutions Corp decreased significantly, but indirect ownership through various trusts remains substantial.
According to the footnotes in the SEC filing, the shares sold were held by Ice Mountain LLC, of which April Jalazo is a seat holder on the voting committee with the power to direct the Special Assets Manager. Despite the sale, Jalazo may still be deemed to beneficially own the shares held by Ice Mountain, as well as additional shares held by other trusts where she holds a similar position. However, Jalazo has disclaimed beneficial interest in these shares, except to the extent of her pecuniary interest.
Investors often monitor insider transactions as they provide insights into an insider's perspective on the value of the company's stock. While the reasons behind individual transactions can vary widely, large sales or purchases can sometimes be a signal of the insider’s belief in the company’s future prospects.
Zurn Elkay Water Solutions Corp, listed on the NYSE under the ticker ZWS, operates within the general industrial machinery and equipment sector. The company has undergone several name changes in its history, reflecting its evolving business focus and corporate structure.
In other recent news, Zurn Elkay Water Solutions Corporation has reported significant developments. The company declared a quarterly dividend of $0.08 per share, scheduled for payout in June. This move is part of the company's ongoing efforts to deliver value to shareholders, maintaining its commitment to sustainable practices in water management.
Simultaneously, Zurn Elkay announced a robust financial performance for the first quarter. The company's sales increased by 400 basis points year-over-year, primarily driven by growth in non-residential markets. Adjusted EBITDA rose by 24%, with the margin expanding by 460 basis points. In light of these results, Zurn Elkay raised its full-year margin outlook and confirmed plans for share repurchases.
These are recent developments that highlight the company's commitment to growth and sustainability. The company 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%, with approximately $250 million in free cash flow expected.
InvestingPro Insights
The recent insider sale at Zurn Elkay Water Solutions Corp (NYSE:ZWS) comes at a time when the company displays a blend of stability and growth potential as per InvestingPro insights. With a perfect Piotroski Score of 9, ZWS demonstrates strong financial health, which could reassure investors despite the insider transactions. This high score indicates a robust corporate structure and sound fiscal practices, which are appealing to potential investors.
Furthermore, the stock is trading at a low P/E ratio relative to near-term earnings growth, with an adjusted P/E ratio for the last twelve months as of Q1 2024 standing at 36.97. This suggests that the stock may be undervalued in light of its growth prospects. Additionally, ZWS’s revenue has seen a healthy increase of 8.34% over the last twelve months as of Q1 2024, reflecting the company's ability to expand its financial base.
For investors looking for further guidance, there are more InvestingPro Tips available that delve into the company's performance and outlook. For instance, analysts have revised their earnings upwards for the upcoming period, and the company is expected to remain profitable this year. Moreover, ZWS’s stock has shown a strong return over the last five years, which might interest long-term investors.
With the current market cap standing at $5.13 billion USD and a forward-looking PEG Ratio of only 0.4, ZWS might represent a compelling investment opportunity for those who believe in the company's continued growth and profitability. For those interested in a deeper analysis, InvestingPro offers a range of additional tips to help make informed investment decisions. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking valuable insights that could shape your investment strategy.
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