Mueller Water Products executive sells shares worth over $175k

Mueller Water Products, Inc. (NYSE:MWA) director, Christine Ortiz, has sold a total of 8,800 shares of the company stock, according to a recent filing with the Securities and Exchange Commission. The transaction, which took place on August 14, 2024, resulted in a total value of approximately $175,479.

The shares were sold at an average price of $19.9409, with individual transactions occurring within a price range of $19.830 to $20.020. Following the sale, Ortiz holds 34,699 shares of Mueller Water Products, which specializes in miscellaneous fabricated metal products.

The sale was conducted under a Rule 10b5-1 trading plan, which was adopted by Ortiz on May 10, 2024. Rule 10b5-1 plans are pre-arranged trading plans that provide a defense against accusations of insider trading, allowing insiders to sell shares at predetermined times.

Investors and interested parties who require detailed information regarding the precise prices at which each share was sold can request this from the reporting person. The reporting person has agreed to provide full details upon request to Mueller Water Products, any of its security holders, or the SEC staff.

The transaction was signed off by Barbara A. Smucygz, Attorney-in-Fact, on behalf of Christine Ortiz. This recent sale provides investors with insights into executive movements within Mueller Water Products, although it does not necessarily indicate a change in company fundamentals or future performance.

In other recent news, Mueller Water Products reported strong third-quarter fiscal results for 2024, with net sales growing by 9.2% year-over-year and a record-setting adjusted net income per diluted share of $0.32, up by 78%. The company's operating income was 45% higher than RBC Capital's estimates, largely due to the successful Water Flow Solutions segment. RBC Capital Markets, in response to these results, raised its price target on Mueller Water Products stock to $23.00 from the previous $20.00.

The company's new brass foundry is progressing well and is expected to replace the old foundry by the end of the 2024 calendar year, a move that is predicted to improve the company's gross margins by 80 to 100 basis points. Mueller Water Products also anticipates a boost in fiscal year 2025 due to lead service line replacements under the Infrastructure Investment and Jobs Act (IIJA).

In light of these recent developments, the company has raised its 2024 guidance, expecting a 36% annual gross margin and projecting free cash flow to be over 85% of adjusted net income for fiscal 2024. Mueller Water Products' strong performance and strategic initiatives, including the completion of a new brass foundry, are expected to contribute to a robust financial performance in the upcoming quarters.

InvestingPro Insights

In light of the recent sale of shares by Mueller Water Products director Christine Ortiz, investors may be keen on understanding the company's current financial health and market performance. The latest data from InvestingPro shows Mueller Water Products with a market capitalization of $3.12 billion, reflecting its standing in the miscellaneous fabricated metal products sector.

An analysis of the company's Price-to-Earnings (P/E) ratio reveals a figure of 25.23, which has adjusted down to 22.15 on a last twelve months basis as of Q3 2024. This suggests a potentially more favorable valuation of the company's earnings going forward. Additionally, the PEG Ratio during the same period stands at 0.39, indicating that the company's earnings growth rate is quite attractive when factored into its price, a metric that may interest value investors.

Revenue insights show a slight contraction of -2.89% in the last twelve months as of Q3 2024, which contrasts with a quarterly revenue growth of 9.22% in Q3 2024. This quarterly upswing could signify a turnaround in the company's sales trajectory, an important factor for investors to consider. Moreover, the company's solid gross profit margin of 34.43% during the same period demonstrates its ability to maintain profitability amidst revenue fluctuations.

InvestingPro Tips highlight that Mueller Water Products has a robust EBITDA growth of 42.0% in the last twelve months as of Q3 2024, a sign of strong operational efficiency. Furthermore, the company's Return on Assets stands at 8.04%, showcasing its ability to generate earnings from its asset base.

For those interested in dividend returns, Mueller Water Products has a current dividend yield of 1.28%, with a dividend growth of 4.92% in the last twelve months as of Q3 2024. This combination of growth and yield may appeal to income-focused investors.

InvestingPro provides an extensive array of additional tips to assist investors in making informed decisions. As of the latest update, there are numerous other InvestingPro Tips available for those who seek deeper insights into Mueller Water Products' financials and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.