Mueller Water Products executive buys $25k in company stock

In a recent transaction, Brian C. Healy, a director at Mueller Water Products, Inc. (NYSE:MWA), purchased shares of the company's common stock, signaling his confidence in the firm's prospects. The transaction, which took place on August 14, 2024, involved Healy acquiring 1,250 shares at an average price of $19.9998, totaling approximately $25,000.

The purchase was carried out under a Rule 10b5-1 trading plan, which Healy had previously adopted on May 15, 2024. This plan allows company insiders to set up a predetermined schedule for buying and selling stock to avoid any accusations of trading on nonpublic information.

Investors often look at insider transactions as a sign of how executives view the company's valuation and future performance. Healy's buy transaction is noteworthy as it may be interpreted as a positive indicator by the market participants.

According to the filing, the shares were bought in multiple transactions at prices ranging from $19.970 to $20.000. Healy has committed to providing full information regarding the number of shares bought at each price point if requested by Mueller Water Products, its shareholders, or the SEC staff.

Following the transaction, Healy's ownership in Mueller Water Products has increased to 3,900 shares of common stock. This latest acquisition by a member of the company's board adds to the array of financial activities that stakeholders and potential investors evaluate when considering their involvement with Mueller Water Products.

Mueller Water Products, headquartered in Atlanta, Georgia, specializes in miscellaneous fabricated metal products and operates within the manufacturing sector. The company's business address is the same as the reporting owner's, located at 1200 Abernathy Rd., NE, Suite 1200, Atlanta, GA 30328.

In other recent news, Mueller Water Products has been making headlines with its strong third quarter results for fiscal 2024. The company reported substantial growth in operating income, exceeding RBC Capital's estimates by 45%. This impressive performance was primarily driven by its Water Flow Solutions segment, which saw a notable increase in iron gate valve volumes.

In addition to its robust quarterly results, Mueller Water Products is making strides with its new brass foundry, which is on track to replace the old one by the end of 2024. This strategic initiative is projected to enhance the company's gross margins by 80 to 100 basis points. RBC Capital also anticipates a moderate boost for the company in fiscal 2025 due to lead service line replacements under the Infrastructure Investment and Jobs Act.

Furthermore, the company's recent earnings call revealed a significant year-over-year increase in net sales and adjusted EBITDA, along with a substantial rise in adjusted net income per diluted share. As a result of these strong results, Mueller Water Products has increased its financial guidance for 2024, demonstrating confidence in its operational strategy and market position. These are among the recent developments that have been shaping the company's trajectory.

InvestingPro Insights

Following the recent insider purchase by director Brian C. Healy, Mueller Water Products, Inc. (NYSE:MWA) presents several financial metrics of interest. The company's adjusted market capitalization stands at $3.12 billion, reflecting its current valuation in the market. A key indicator of valuation, the P/E ratio, is at 25.23, with a forward-looking P/E (adjusted) for the last twelve months as of Q3 2024 at a slightly lower 22.15. This suggests that investors are expecting earnings to grow relative to the company's market valuation.

An InvestingPro Tip highlights the company's PEG ratio, which is at 0.39 for the same period. This ratio, which measures the stock's price-to-earnings relative to its earnings growth rate, indicates that the company may be undervalued given its earnings growth prospects. Additionally, Mueller Water Products has demonstrated a robust gross profit margin of 34.43%, which is a testament to the company's ability to manage its cost of goods sold effectively and maintain profitability.

Investors may also take note of the company's revenue growth, which showed a decline of 2.89% over the last twelve months as of Q3 2024. However, a quarterly revenue growth of 9.22% in Q3 2024 indicates a potential turnaround or seasonal fluctuation in sales. The company's EBITDA growth for the same period stands at an impressive 42.0%, a metric that could be of interest for those looking at the company's operational efficiency and potential for future profitability.

For those interested in dividend income, Mueller Water Products has a dividend yield of 1.28% as of 2024, with a dividend growth of 4.92% over the last twelve months as of Q3 2024. This could appeal to income-focused investors seeking steady payouts.

The InvestingPro platform offers a wealth of additional tips for Mueller Water Products, with currently 15 more InvestingPro Tips available for investors seeking deeper insights. The InvestingPro Fair Value estimate stands at $19.84, which is closely aligned with the stock's previous close price of $19.91, suggesting that the stock is trading at a fair market value according to InvestingPro's analysis.

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