An insider at Zurn Elkay Water Solutions Corp (NYSE:ZWS) has recently sold a significant number of shares in the company. April Jalazo, who is associated with entities that hold a substantial interest in the company, disposed of 111,760 shares at prices ranging from $29.00 to $29.13, with a weighted average price of $29.07 per share. The total value of the shares sold amounts to approximately $3,248,863.
The transactions were executed on July 2, 2024, and were disclosed in a filing with the Securities and Exchange Commission. According to the disclosure, the shares sold are indirectly held by Ice Mountain LLC, for which Cascade Bay LLC is the manager and sole Class A Member. April Jalazo is a seat holder on the voting committee of the Katz 2004 DYN Trust, which has the authority to direct Cascade Bay's decisions. Consequently, Jalazo may be deemed to beneficially own the shares sold, although she disclaims beneficial ownership except to the extent of her pecuniary interest.
Following the sale, the reporting documents indicate that Ice Mountain LLC still indirectly owns 23,454,164 shares of Zurn Elkay Water Solutions Corp common stock. Additionally, the filing notes that April Jalazo is associated with other entities holding company shares, including Katz New VBA Trust and Katz Voting Stock Trust, with 14,101 and 236,387 shares respectively. Jalazo has a role in the decision-making of these trusts as well, which further contributes to her deemed beneficial ownership.
Investors often monitor insider transactions as they can provide insights into how executives and significant shareholders view the company's stock value and prospects. The sale by April Jalazo represents a notable change in her investment position and may be of interest to current and potential shareholders.
Zurn Elkay Water Solutions Corp specializes in providing water solutions and is known for its industrial machinery and equipment. The company, headquartered in Milwaukee, Wisconsin, has a history that includes previous names such as Zurn Water Solutions Corp and Rexnord (NYSE:ZWS) Corp, reflecting its evolving business focus and corporate structure.
In other recent news, Zurn Elkay Water Solutions Corporation has reported a robust financial performance for the first quarter, surpassing key metrics expectations. The company's sales increased by 400 basis points year-over-year, primarily driven by growth in non-residential markets. Furthermore, adjusted EBITDA rose by 24%, with a margin expansion of 460 basis points.
These strong results led Zurn Elkay to raise its full-year margin outlook and confirm plans for share repurchases. The company is optimistic about the full-year outlook, projecting low single-digit pro forma core sales growth for Q2 and an adjusted EBITDA margin between 24.5% and 25%, with approximately $250 million in free cash flow expected.
In addition to its earnings news, Zurn Elkay declared a quarterly dividend of $0.08 per share, scheduled to be paid in cash in June to shareholders on record by May. This dividend declaration is part of the company's ongoing efforts to deliver value to its shareholders.
These are recent developments that highlight the company's commitment to its investors and its strategic focus on growth and sustainability. While Zurn Elkay continues to navigate the market, it emphasizes its product offerings and its focus on specification-driven solutions, setting them apart in the industry.
InvestingPro Insights
Recent insider selling at Zurn Elkay Water Solutions Corp (NYSE:ZWS) has put the spotlight on the company's financial health and stock performance. Key metrics from InvestingPro show a company that appears to be on solid financial footing. Zurn Elkay boasts a perfect Piotroski Score of 9, indicating strong financial health and suggesting that the company is operating effectively. This could be a reassuring sign for investors considering the insider selling activity.
InvestingPro data highlights that Zurn Elkay is trading at a P/E ratio of 40.71, which adjusts to 36.17 based on the last twelve months as of Q1 2024. Despite what might be considered a high earnings multiple, the company's PEG ratio for the same period stands at 0.39, suggesting that the stock may be undervalued relative to its near-term earnings growth potential. Additionally, the company's revenue growth over the last twelve months is 8.34%, indicating a steady upward trajectory.
For investors seeking stability, Zurn Elkay generally trades with low price volatility, as per one of the InvestingPro Tips. Moreover, analysts predict the company will be profitable this year, with a strong return over the last five years, which could suggest potential for continued growth. For those interested in deeper analysis, there are additional InvestingPro Tips available, which can be accessed by visiting the company's page on Investing.com/pro/ZWS. To help investors make more informed decisions, they can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
Considering the insider sale, these metrics and insights may provide a broader context for current and potential shareholders to understand Zurn Elkay Water Solutions Corp's overall financial health and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.