Massive Insider Trade At Zurn Elkay Water

A substantial insider sell was reported on July 3, by Aimee Katz, 10% Owner at Zurn Elkay Water ZWS, based on the recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday outlined that Katz executed a sale of 8,240 shares of Zurn Elkay Water with a total value of $240,113.

The latest update on Thursday morning shows Zurn Elkay Water shares up by 1.37%, trading at $29.58.

Delving into Zurn Elkay Water's Background

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.

Breaking Down Zurn Elkay Water's Financial Performance

Positive Revenue Trend: Examining Zurn Elkay Water's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.46% as of 31 March, 2024, showcasing a substantial increase in 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.

Insights into Profitability:

• 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. The company faced challenges with a current EPS of 0.2. This suggests a potential decline in earnings.

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.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 44.89 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 3.36 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 19.19 reflects market recognition of Zurn Elkay Water's value, positioning it as more highly valued compared to industry peers.

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

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

The Importance of Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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.

Unlocking the Meaning of Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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.