Mueller Water Products senior advisor sells over $4.75 million in company stock

In a recent series of transactions, J. Scott Hall, Senior Advisor at Mueller Water Products, Inc. (NYSE:MWA), sold a significant amount of company stock, totaling over $4.75 million. The sales occurred on August 8th and 12th, with the prices per share ranging from $19.5373 to $20.3365.

On August 8th, Hall sold 135,253 shares at an average price of $20.3365, and on August 12th, he further sold 102,025 shares at an average price of $19.5373. These shares were sold in multiple transactions at varying prices within the reported ranges. The total value of shares sold by Hall amounted to approximately $4,753,882.

In addition to the sales, Hall also acquired shares through exercising options on the same dates. On August 8th and 9th, he exercised options for 135,753 shares and 500 shares respectively, at a price of $11.86 per share. On August 12th, he exercised options for 60,568 shares at $13.64 per share and another 41,457 shares at $11.86 per share. The total value for these acquired shares amounted to approximately $2,927,858, with the price per share for these transactions ranging between $11.86 and $13.64.

Following these transactions, Hall's ownership in the company has seen a change, but he still retains a substantial number of shares. The details of these transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission.

Investors often monitor insider buying and selling as it can provide insights into a company's financial health and the confidence that executives have in the firm's future prospects. The transactions by Hall represent a notable change in his stake in Mueller Water Products, a company that specializes in miscellaneous fabricated metal products.

Mueller Water Products, Inc. is based in Atlanta, Georgia, and is incorporated in Delaware. The company operates within the manufacturing sector, providing a range of products and services for water and gas infrastructure.

In other recent news, Mueller Water Products reported strong operating results for the third fiscal quarter of 2024, exceeding expectations with substantial topline growth. The firm's operating income was 45% higher than RBC Capital's estimates, largely due to an increased volume of iron gate valves in the Water Flow Solutions segment. Furthermore, the company's new brass foundry is progressing well and is expected to replace the old foundry by the end of 2024, a move predicted to improve gross margins by 80 to 100 basis points.

RBC Capital Markets has raised its price target on Mueller Water Products to $23.00, maintaining a Sector Perform rating. The firm anticipates a moderate boost in the company's fiscal year 2025 due to lead service line replacements under the Infrastructure Investment and Jobs Act (IIJA).

In addition to the robust performance, Mueller Water Products reported a year-over-year increase in net sales and adjusted EBITDA, along with a rise in adjusted net income per diluted share in Q3 2024. Based on these results, the company is raising its financial guidance for the full year 2024. Mueller Water Products is also refining its plans for fiscal 2025 and beyond, focusing on becoming a more sustainable and innovative organization. These are among the recent developments for Mueller Water Products.

InvestingPro Insights

As the financial landscape of Mueller Water Products, Inc. (NYSE:MWA) draws attention due to insider transactions, a closer look through the lens of InvestingPro provides additional context. With a market capitalization of $3.04 billion and a P/E ratio of 24.78, which adjusts to a more attractive 22.11 when considering the last twelve months as of Q3 2024, the company showcases a blend of valuation metrics that suggest a nuanced investment profile.

An InvestingPro Tip highlights that Mueller Water Products has raised its dividend for 9 consecutive years, signaling a commitment to returning value to shareholders. This is corroborated by the company's 19-year streak of maintaining dividend payments. Investors might find reassurance in this consistency, especially when considering the company's dividend yield of 1.31% as of the latest data.

Another InvestingPro Tip indicates that analysts have revised their earnings expectations downwards for the upcoming period. This could be a critical factor for investors to consider, particularly in the context of the recent insider selling. However, the company's profitability over the last twelve months and the prediction that it will remain profitable this year offer a counterbalance to concerns about future earnings.

From a growth perspective, Mueller Water Products experienced a revenue growth of 9.22% in the quarterly period ending Q3 2024, despite a slight decline in revenue growth of -2.89% over the last twelve months. This recent upswing may be a positive sign for the company's near-term trajectory.

For those seeking more in-depth insights, there are an additional 9 InvestingPro Tips available for Mueller Water Products, which can be found at https://www.investing.com/pro/MWA. These tips provide a more comprehensive analysis of the company's financial health and future prospects.

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