10% Owner Of Zurn Elkay Water Makes $8.02M Sale

Aimee Katz, 10% Owner at Zurn Elkay Water ZWS, disclosed an insider sell on April 18, according to a recent SEC filing.

What Happened: Katz's decision to sell 250,000 shares of Zurn Elkay Water was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $8,019,414.

The latest market snapshot at Friday morning reveals Zurn Elkay Water shares down by 1.55%, trading at $31.12.

All You Need to Know About 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's Economic Impact: An Analysis

Revenue Growth: Zurn Elkay Water displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 4.85%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Evaluating Earnings Performance:

• Gross Margin: The company excels with a remarkable gross margin of 43.69%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Zurn Elkay Water's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.08.

Debt Management: Zurn Elkay Water's debt-to-equity ratio is below the industry average. With a ratio of 0.34, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: Zurn Elkay Water's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 53.58.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 3.66 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 21.52, Zurn Elkay Water demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Unmasking the Significance of Insider Transactions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

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.

Cracking Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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.