In a recent transaction, a significant shareholder of Zurn Elkay Water Solutions Corp (NYSE:ZWS) sold a substantial number of shares, according to the latest SEC filings. The major holder, April Jalazo, parted with 100,000 shares of the company's common stock at an average price of $30.10 per share, resulting in a total transaction value of approximately $3.01 million. The shares were sold in multiple transactions with prices ranging from $30.00 to $30.18.
This sale has adjusted Jalazo's holdings, but she remains a major holder with indirect ownership of over 24 million shares through various trusts and limited liability companies. The disclosure notes that April Jalazo may be deemed to beneficially own these shares due to her position on the voting committee of the entities holding the stock. However, she disclaims beneficial ownership of these shares except to the extent of her pecuniary interest.
Investors and market watchers often look to insider transactions as an indicator of a company’s health and future prospects. While the reasons for selling can vary widely, such transactions are closely monitored for insights into insider confidence and potential strategic moves within the company.
Zurn Elkay Water Solutions Corp, known for its expertise in water solutions and industrial machinery, continues to be an active player in its sector, and insider transactions such as this one will likely keep investors attentive to any potential shifts in the company's trajectory.
In other recent news, Zurn Elkay Water Solutions Corporation announced a quarterly dividend of $0.08 per share, set for a June payout. This follows the company's robust financial performance in the first quarter, where key metrics surpassed expectations, leading to an increase in the full-year margin outlook. Sales rose by 400 basis points year-over-year, primarily driven by growth in non-residential markets, and adjusted EBITDA grew by 24%, expanding the margin by 460 basis points.
Zurn Elkay also confirmed plans for share repurchases and highlighted successful product launches, such as the Hydro-X Sensor Flush Valve. The company projects low single-digit pro forma core sales growth for Q2 and an adjusted EBITDA margin between 24.5% and 25%, expecting approximately $250 million in free cash flow.
CEO Todd Adams discussed growth in the drinking water and filtration segments, which are expected to see double-digit growth rates. Despite conservative guidance for the latter half of the year, Zurn Elkay remains optimistic about the full-year outlook. These developments underscore the company's commitment to delivering value to its shareholders and its focus on sustainable practices in water management.
InvestingPro Insights
As investors digest the news of April Jalazo's recent share sale in Zurn Elkay Water Solutions Corp (NYSE:ZWS), it's worth considering the company's financial health and market performance to provide context to this insider activity. According to InvestingPro data, Zurn Elkay Water Solutions Corp currently holds a market capitalization of $5.38 billion and has been trading at a P/E ratio of 44.01, which adjusts to 38.77 when looking at the last twelve months as of Q1 2024. This valuation comes in the face of a PEG ratio of 0.4 during the same period, suggesting that the company's earnings growth could be seen as undervalued relative to its peers.
InvestingPro Tips highlight several positive aspects of Zurn Elkay Water Solutions Corp's financial performance and analysts' outlook. Notably, the company has a perfect Piotroski Score of 9, indicating strong financial health, and net income is expected to grow this year. Additionally, six analysts have revised their earnings estimates upwards for the upcoming period, reflecting a positive sentiment around the company's earning potential. Moreover, the company's stock is characterized by low price volatility, providing some stability for investors.
For those interested in a deeper analysis, there are additional InvestingPro Tips available for Zurn Elkay Water Solutions Corp at https://www.investing.com/pro/ZWS. These insights can be accessed with an exclusive offer: use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 10 more tips listed on InvestingPro, offering a comprehensive view of the company's financials and market performance.
Understanding the broader financial context of Zurn Elkay Water Solutions Corp can provide investors with a clearer picture of the potential implications of insider transactions, such as the one executed by April Jalazo, and how it fits into the company's long-term strategy and market positioning.
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