April Jalazo Takes Money Off The Table, Sells $1.12M In Zurn Elkay Water Stock

April Jalazo, 10% Owner at Zurn Elkay Water ZWS, disclosed an insider sell on June 25, according to a recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that Jalazo executed a sale of 36,938 shares of Zurn Elkay Water with a total value of $1,124,392.

Monitoring the market, Zurn Elkay Water's shares down by 0.0% at $30.1 during Tuesday's morning.

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 Financial Performance

Revenue Growth: Zurn Elkay Water displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 0.46%. This indicates a notable 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.

Key Insights into Profitability Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 45.51%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Zurn Elkay Water's EPS reflects a decline, falling below the industry average 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.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 46.31 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 3.47 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 19.76, positions it with an above-average valuation in the market.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Why Insider Activity Matters in Finance

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Unlocking the Meaning of Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates 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.