Aimee Katz Executes Sell Order: Offloads $1.12M In Zurn Elkay Water Stock

Aimee Katz, 10% Owner at Zurn Elkay Water ZWS, reported an insider sell on June 25, according to a new SEC filing.

What Happened: Katz's recent Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled the sale of 36,938 shares of Zurn Elkay Water. The total transaction value is $1,124,392.

The latest market snapshot at Tuesday morning reveals Zurn Elkay Water shares down by 0.0%, trading at $30.1.

All You Need to Know 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: Over the 3 months period, Zurn Elkay Water showcased positive performance, achieving a revenue growth rate of 0.46% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Navigating Financial Profits:

• Gross Margin: With a high gross margin of 45.51%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Zurn Elkay Water's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.2.

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.

In-Depth Valuation Examination:

• 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: A higher-than-average P/S ratio of 3.47 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 19.76, 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: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Understanding the Significance of Insider Transactions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

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.

Deciphering Transaction Codes in Insider Filings

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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.