10% Owner Of Zurn Elkay Water Makes $3.01M Sale

A substantial insider sell was reported on June 12, by Ice Mountain LLC, 10% Owner at Zurn Elkay Water ZWS, based on the recent SEC filing.

What Happened: LLC's decision to sell 100,000 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 $3,010,000.

During Thursday's morning session, Zurn Elkay Water shares down by 0.0%, currently priced at $31.17.

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: Financial Performance Dissected

Revenue Growth: Zurn Elkay Water's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 0.46%. This indicates a substantial increase 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.

Exploring 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 the industry average at 0.33, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: Zurn Elkay Water's current Price to Earnings (P/E) ratio of 47.95 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 3.59 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): A high EV/EBITDA ratio of 20.41 positions the company as being more valued compared to industry benchmarks.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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The Impact of Insider Transactions on Investments

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Deciphering Transaction Codes in Insider Filings

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously 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 indicates 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.