Insider Activity Spotlight: Scott Floyd Acquires In Mueller Water Products Stock Options

In a recent SEC filing, it was disclosed that Scott Floyd, SVP at Mueller Water Products MWA, made a noteworthy acquisition of company stock options on February 21,.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Floyd, SVP at Mueller Water Products, a company in the Industrials sector, acquired stock options for 10,287 shares of MWA. The options allow Floyd to buy the company's stock at $11.86 per share.

Mueller Water Products shares are trading, exhibiting down of 0.0% and priced at $15.68 during Thursday's morning. This values Floyd's 10,287 shares at $39,296.

Get to Know Mueller Water Products Better

Mueller Water Products, Inc. is a U.S.-based company that manufactures and sells products and services used in the transmission, distribution, and measurement of water. The company operates in two segments Water Flow Solutions and Water Management Solutions. Water Flow Solutions' portfolio includes iron gate valves, specialty valves and service brass products. Water Management Solutions' portfolio includes fire hydrants, repair and installation, natural gas, metering, leak detection, and pressure management and control products and solutions. The company derives a majority of its revenue from the United states.

Mueller Water Products: A Financial Overview

Revenue Growth: Mueller Water Products's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2023, the company experienced a revenue decline of approximately -18.55%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Navigating Financial Profits:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 33.66%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Mueller Water Products's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.09.

Debt Management: Mueller Water Products's debt-to-equity ratio stands notably higher than the industry average, reaching 0.65. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 31.36 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The P/S ratio of 2.02 is lower than the industry average, implying a discounted valuation for Mueller Water Products's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 15.17, Mueller Water Products presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Illuminating the Importance of Insider Transactions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

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

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

The Insider's Guide to 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 Mueller Water Products's Insider Trades.

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