Zurn Elkay Water 10% Owner Trades $1.48M In Company Stock

A substantial insider sell was reported on May 29, by Aimee Katz, 10% Owner at Zurn Elkay Water ZWS, based on the recent SEC filing.

What Happened: Katz's recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled the sale of 46,380 shares of Zurn Elkay Water. The total transaction value is $1,484,160.

Zurn Elkay Water shares are trading down 0.0% at $30.46 at the time of this writing on Thursday morning.

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.

Key Indicators: Zurn Elkay Water's Financial Health

Revenue Growth: Over the 3 months period, Zurn Elkay Water showcased positive performance, achieving a revenue growth rate of 0.46% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Insights into Profitability:

• Gross Margin: Achieving a high gross margin of 45.51%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Zurn Elkay Water's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.2.

Debt Management: Zurn Elkay Water's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.33.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: Zurn Elkay Water's current Price to Earnings (P/E) ratio of 46.86 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 3.51 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Zurn Elkay Water's EV/EBITDA ratio, surpassing industry averages at 19.98, positions it with an above-average valuation in the market.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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The Importance 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.

Deciphering Transaction Codes in Insider Filings

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as 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.