Insider Activity Spotlight: EDMUNDS MARIETTA ZAKAS Acquires $185K In Mueller Water Products Stock Options

EDMUNDS MARIETTA ZAKAS, President and CEO at Mueller Water Products MWA, reported acquisition of company stock options on February 21, according to a new SEC filing.

What Happened: ZAKAS, President and CEO at Mueller Water Products, engaged in a derivative transaction according to a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission. This involved the acquisition of stock options for 48,513 shares of MWA, providing the right to purchase the company's stock at an exercise price of $11.86 per share.

The Thursday morning update indicates Mueller Water Products shares down by 0.0%, currently priced at $15.68. At this value, ZAKAS's 48,513 shares are worth $185,319.

Discovering Mueller Water Products: A Closer Look

Mueller Water Products, Inc. is a U.S.-based company that manufactures and sells products and services used in the transmission, distribution, and measurement of water. The company operates in two segments Water Flow Solutions and Water Management Solutions. Water Flow Solutions' portfolio includes iron gate valves, specialty valves and service brass products. Water Management Solutions' portfolio includes fire hydrants, repair and installation, natural gas, metering, leak detection, and pressure management and control products and solutions. The company derives a majority of its revenue from the United states.

Mueller Water Products: A Financial Overview

Decline in Revenue: Over the 3 months period, Mueller Water Products faced challenges, resulting in a decline of approximately -18.55% in revenue growth as of 31 December, 2023. This signifies a reduction in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Insights into Profitability:

• Gross Margin: The company shows a low gross margin of 33.66%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Mueller Water Products's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.09.

Debt Management: Mueller Water Products's debt-to-equity ratio stands notably higher than the industry average, reaching 0.65. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 31.36 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The P/S ratio of 2.02 is lower than the industry average, implying a discounted valuation for Mueller Water Products's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Mueller Water Products's EV/EBITDA ratio at 15.17 suggests potential undervaluation, falling below industry averages.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Exploring the Significance of Insider Trading

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

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.

Cracking 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 Mueller Water Products's Insider Trades.

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