Zurn Elkay Water Chief Financial Officer Trades $159K In Company Stock

Revealing a significant insider sell on November 8, David J Pauli, Chief Financial Officer at Zurn Elkay Water ZWS, as per the latest SEC filing.

What Happened: Pauli's decision to sell 4,070 shares of Zurn Elkay Water was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total value of the sale is $159,340.

The latest market snapshot at Friday morning reveals Zurn Elkay Water shares down by 0.0%, trading at $39.19.

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.

Financial Milestones: Zurn Elkay Water's Journey

Revenue Growth: Over the 3 months period, Zurn Elkay Water showcased positive performance, achieving a revenue growth rate of 2.91% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Profitability Metrics: Unlocking Value

• Gross Margin: The company sets a benchmark with a high gross margin of 46.2%, reflecting superior 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 0.25.

Debt Management: Zurn Elkay Water's debt-to-equity ratio is below the industry average. With a ratio of 0.35, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Financial Valuation:

• Price to Earnings (P/E) Ratio: Zurn Elkay Water's current Price to Earnings (P/E) ratio of 50.24 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 higher-than-average P/S ratio of 4.43, Zurn Elkay Water's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 22.81, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Why Pay Attention to Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Closer Look at 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.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.