Mark W Peterson Implements A Sell Strategy: Offloads $4.67M In Zurn Elkay Water Stock

Making a noteworthy insider sell on February 13, Mark W Peterson, SVP & Chief Financial Officer at Zurn Elkay Water ZWS, is reported in the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Peterson sold 143,727 shares of Zurn Elkay Water. The total transaction amounted to $4,674,872.

As of Tuesday morning, Zurn Elkay Water shares are down by 3.36%, currently priced at $31.25.

Unveiling the Story Behind Zurn Elkay Water

Zurn Elkay Water Solutions Corp designs procure, manufactures, and markets a range of clean water solutions for drinking water, hygiene, and sustainable water management. The Zurn Elkay product portfolio includes professional-grade water control and safety, water distribution and drainage, drinking water, finish plumbing, hygienic, environmental and site works products for public and private spaces.

Zurn Elkay Water: Financial Performance Dissected

Revenue Growth: Zurn Elkay Water's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 4.85%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Interpreting Earnings Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 43.69%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Zurn Elkay Water exhibits below-average bottom-line performance with a current EPS of 0.08.

Debt Management: Zurn Elkay Water's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.34.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 54.8, Zurn Elkay Water's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 3.74, Zurn Elkay Water's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 21.84 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Illuminating the Importance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

A Closer Look at Important Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Zurn Elkay Water's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.