Insider Decision: April Jalazo Offloads $1.48M Worth Of Zurn Elkay Water Stock

Making a noteworthy insider sell on May 29, April Jalazo, 10% Owner at Zurn Elkay Water ZWS, is reported in the latest SEC filing.

What Happened: Jalazo's decision to sell 46,380 shares of Zurn Elkay Water was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $1,484,160.

In the Thursday's morning session, Zurn Elkay Water's shares are currently trading at $30.46, experiencing a down of 0.0%.

Discovering Zurn Elkay Water: A Closer Look

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: 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. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Key Profitability Indicators:

• Gross Margin: The company maintains a high gross margin of 45.51%, indicating strong cost management and profitability compared to its 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 0.2.

Debt Management: With a below-average debt-to-equity ratio of 0.33, Zurn Elkay Water adopts a prudent financial strategy, indicating a balanced approach to debt management.

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: The current P/S ratio of 3.51 is above industry norms, reflecting an elevated valuation for Zurn Elkay Water's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 19.98, the company's market valuation exceeds industry averages.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Why Pay Attention to Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

The Insider's Guide to Important Transaction Codes

When analyzing 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 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.