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Michael Troutman, Chief Information Officer at Zurn Elkay Water Solutions Corp (NYSE:ZWS), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Troutman sold 100,851 shares of Zurn Elkay common stock on October 31, 2024, with transaction prices ranging from $36.1329 to $36.5192. The total value of these sales amounted to approximately $3.66 million.
In addition to these sales, Troutman exercised stock options to acquire 100,851 shares at prices between $9.69 and $12.67, with the total value of these acquisitions reaching approximately $1.13 million. Following these transactions, he retains direct ownership of 42,927 shares of Zurn Elkay common stock.
In other recent news, Zurn Elkay Water Solutions Corporation has reported a strong Q3 performance, exceeding its guidance with a 4% core growth and a 9% increase in adjusted EBITDA. This robust performance has led to improved margins and a boost in the company's full-year free cash flow outlook. In a show of confidence, Zurn Elkay also increased its quarterly dividend by 12.5%.
The company's total Q3 sales reached $410 million, driven by non-residential market growth, while residential sales remained steady. Zurn Elkay's CEO, Todd Adams, highlighted the company's dedication to sustainability, particularly in Michigan's clean drinking water initiatives, and projected low single-digit core sales growth for Q4 2024.
Despite market challenges, Zurn Elkay maintains a strong EBITDA margin of 25% year-to-date. The company's outlook includes an anticipated core sales growth in low single digits for Q4 2024 and a projected adjusted EBITDA between $88 million and $90 million. The company is also exploring merger and acquisition opportunities as part of its capital allocation strategy. These recent developments underscore Zurn Elkay's commitment to growth and profitability in the construction and water solutions sectors.
InvestingPro Insights
As Michael Troutman's recent stock transactions at Zurn Elkay Water Solutions Corp (NYSE:ZWS) draw attention, it's worth examining the company's current financial position and market performance.
According to InvestingPro data, Zurn Elkay boasts a market capitalization of $6.28 billion, reflecting its substantial presence in the water solutions industry. The company's revenue for the last twelve months as of Q3 2024 stood at $1.55 billion, with a modest growth of 2.55% over the same period.
Zurn Elkay's stock has shown impressive momentum, with a 15.56% price total return over the past three months and a strong 33.35% return over the past year. This performance aligns with an InvestingPro Tip indicating that the stock has been trading near its 52-week high, currently at 97.32% of that peak.
Investors should note that while Zurn Elkay is trading at a relatively high P/E ratio of 46.35, the company's profitability outlook remains positive. An InvestingPro Tip suggests that net income is expected to grow this year, and analysts predict the company will remain profitable. This growth expectation may justify the premium valuation to some extent.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for Zurn Elkay, providing a more comprehensive view of the company's financial health and market position.
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