Zurn Elkay Water Solutions Corp (NYSE:ZWS) Director Timothy J. Jahnke has sold a significant portion of his holdings in the company, according to recent filings. Jahnke offloaded a total of 19,000 shares across two separate transactions, with the combined sales amounting to over $700,000.
The transactions, which took place on September 19 and September 20, were executed at a price of $35.0 per share. Following these sales, Jahnke's direct ownership in the company has reduced to 365,017 shares. Additionally, it should be noted that Jahnke indirectly owns an additional 200,000 shares through an irrevocable trust.
The sales were conducted under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information. This mechanism is designed to prevent any accusations of insider trading by allowing sales of shares to be planned in advance.
Investors often monitor insider transactions for insights into how corporate executives perceive the value of their company's stock. While the reasons for insider sales can vary widely, they can sometimes provide valuable context about the company's current financial health and future prospects.
Zurn Elkay Water Solutions Corp, based in Milwaukee, WI, operates in the general industrial machinery and equipment industry and has undergone several name changes in its history, previously known as Zurn Water Solutions Corp and Rexnord (NYSE:ZWS) Corp.
For those interested in following the company's insider transactions, Zurn Elkay Water Solutions Corp trades under the ticker symbol ZWS on the New York Stock Exchange.
In other recent news, Zurn Water Solutions has been making waves in the investment world. Zurn's second-quarter performance showcased a 20% increase in adjusted EBITDA and a notable margin expansion, with core growth marked at 3%. The company generated $80 million in free cash flow and repurchased nearly 2 million shares, contributing to an EBITDA increase of $35 million for the first half of the year. It also surpassed $250 million in free cash flow for the full year.
Baird has recognized Zurn's strong performance, raising its price target on the company from $36 to $37 while maintaining a neutral rating. The firm noted Zurn's impressive margin execution and upgraded its 2024 guidance based on better-than-expected results. A recent change in leadership at Zurn is expected to offer more flexibility within the company, and its solid balance sheet positions it well for strategic capital deployment. These are some of the recent developments in the company's journey.
InvestingPro Insights
As investors assess the implications of Director Timothy Jahnke's recent sale of Zurn Elkay Water Solutions Corp (NYSE:ZWS) shares, it's important to consider the company's financial metrics and market performance. According to real-time data from InvestingPro, Zurn Elkay Water Solutions Corp is currently trading at a P/E ratio of 44.52, with a slight adjustment in the last twelve months as of Q2 2024 bringing this figure to 40.78. This valuation comes at a time when net income is expected to grow this year, one of the InvestingPro Tips that could signal confidence in the company's earnings potential.
Furthermore, the company's revenue growth in the last twelve months as of Q2 2024 stood at a modest 0.5%, with a quarterly increase of 2.18%. This steady growth is complemented by a strong gross profit margin of 44.27%, indicating healthy financial management. Another key metric is the company's market capitalization, which is currently valued at $5.95 billion USD.
InvestingPro Tips highlight that three analysts have recently revised their earnings upwards for the upcoming period, suggesting a positive outlook on the company's financial performance. Additionally, Zurn Elkay Water Solutions Corp's stock is trading near its 52-week high, with a price percentage of 99.03% of that peak, reflecting a strong return over the last three months.
For investors looking for more detailed analysis and additional tips, there are 12 more InvestingPro Tips available at https://www.investing.com/pro/ZWS. These insights could provide a more nuanced understanding of Zurn Elkay Water Solutions Corp's stock performance and future prospects, particularly in light of recent insider selling activity.
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