In a recent transaction, an insider at Zurn Elkay Water Solutions Corp (NYSE:ZWS) sold shares of the company's stock, catching the attention of investors. The transaction, which took place on June 13, involved the sale of 687 shares at a price of $31.25 per share, totaling over $21,468.
The insider involved in this transaction was April Jalazo, who is associated with the company as a ten percent owner. Following the sale, it was reported that Jalazo still holds a substantial number of shares indirectly through various entities. Specifically, shares are held by Ice Mountain LLC, Katz New VBA Trust, and Katz Voting Stock Trust, with Jalazo having a seat on the voting committees of these entities, granting her the power to direct their investment decisions.
While Jalazo has disclaimed beneficial interest in these shares, except to the extent of her pecuniary interest, the transaction has provided a glimpse into the trading activities of insiders within Zurn Elkay Water Solutions Corp. The company, known for its industrial machinery and equipment, has its shares listed on the New York Stock Exchange under the ticker symbol ZWS.
As investors and market watchers look to insider transactions for signals about a company's prospects, sales such as these can be of interest. However, it is important to note that insider trading activities can be influenced by many personal financial needs or strategies and do not always provide clear indicators of a company's future performance.
The details of the transaction were made public through a Form 4 filing with the Securities and Exchange Commission, which provides timely updates on insider transactions. With this latest move, stakeholders in Zurn Elkay Water Solutions Corp will be keeping a close eye on the company's performance and any further insider trading activity.
In other recent news, Zurn Elkay Water Solutions Corporation has made significant strides in its financial performance. The company reported a robust Q1, with sales increasing by 400 basis points year-over-year, primarily driven by growth in non-residential markets. In addition, Zurn Elkay's adjusted EBITDA rose by 24%, leading to a margin expansion of 460 basis points.
These positive results have led to Zurn Elkay raising its full-year margin outlook and confirming plans for share repurchases. The company also declared a quarterly dividend of $0.08 per share, scheduled to be paid in June to shareholders on record by May.
Another highlight is the successful launch of new products, such as the Hydro-X Sensor Flush Valve. The company's CEO, Todd Adams, also shed light on the company's growth strategies, particularly focusing on the drinking water and filtration segments, which are anticipated to see double-digit growth rates. These recent developments underscore Zurn Elkay's commitment to delivering value to its shareholders and maintaining sustainable practices in water management.
InvestingPro Insights
Amidst the recent insider trading activity at Zurn Elkay Water Solutions Corp (NYSE:ZWS), investors seeking to understand the company's financial health and future prospects can turn to insights from InvestingPro. Notably, ZWS boasts a perfect Piotroski Score of 9, indicating strong financial health, and analysts are optimistic about the company's profitability, with net income expected to grow this year and six analysts having revised their earnings upwards for the upcoming period.
From a valuation perspective, Zurn Elkay Water Solutions Corp is trading at a P/E ratio of 43.09, which is considered high. However, when adjusted for near-term earnings growth, the P/E ratio as of the last twelve months as of Q1 2024 is 38.29, suggesting a more favorable outlook. Additionally, the company's PEG Ratio during the same period stands at 0.41, indicating that the stock might be undervalied relative to its earnings growth.
InvestingPro Data further shows that ZWS has a market capitalization of $5,320M USD, and the company has maintained a steady revenue growth of 8.34% over the last twelve months as of Q1 2024. This financial stability is complemented by a solid return on assets of 4.54% during the same timeframe, showcasing the company's ability to generate profits from its assets.
For investors looking to delve deeper into Zurn Elkay Water Solutions Corp's financial metrics and gain additional insights, InvestingPro offers a range of tips. There are 10 more InvestingPro Tips available, which can be accessed through their dedicated page: https://www.investing.com/pro/ZWS. To help investors make the most informed decisions, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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