Zurn Elkay Water Insider Trades Send A Signal

Revealing a significant insider sell on November 8, Michael Troutman, Chief Information Officer at Zurn Elkay Water ZWS, as per the latest SEC filing.

What Happened: Troutman's decision to sell 4,811 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 $188,350.

In the Friday's morning session, Zurn Elkay Water's shares are currently trading at $39.19, experiencing a down of 0.0%.

About Zurn Elkay Water

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.

Key Indicators: Zurn Elkay Water's Financial Health

Revenue Growth: Zurn Elkay Water's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 2.91%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Insights into Profitability:

• Gross Margin: The company maintains a high gross margin of 46.2%, 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 0.25.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.35.

Insights into Valuation Metrics:

• 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): Boasting an EV/EBITDA ratio of 22.81, Zurn Elkay Water demonstrates a robust market valuation, outperforming industry benchmarks.

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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Understanding the Significance of Insider Transactions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Navigating the World of Insider Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies 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.