Lydia W. Thomas, a director at Mueller Water Products, Inc. (NYSE:MWA), recently reported a series of transactions involving the company's common stock. On November 18, Thomas exercised stock options to acquire 10,791 shares at a price of $9.97 per share. Subsequently, she sold the same number of shares at an average price of $24.3988, resulting in a total transaction value of approximately $263,287.
Following these transactions, Thomas holds 136,405 shares of Mueller Water Products. The sale was executed in multiple transactions, with prices ranging from $24.37 to $24.42 per share.
In other recent news, Mueller Water Products has been in the spotlight due to several developments. The company reported record earnings for fiscal year 2024, with consolidated net sales surpassing $1.3 billion, a 15.5% increase year-over-year, and adjusted net income per share reaching a record high of $0.96. Additionally, the company's fourth-quarter net sales rose to $348.2 million, and adjusted EBITDA for the quarter grew by 30.9% to $72.5 million.
Analyst firm TD (TSX:TD) Cowen also adjusted Mueller Water Products' financial outlook, raising the price target on the company's shares to $23.00 from the previous $20.00. However, the firm's EBITDA estimate for fiscal year 2025 is slightly lower, attributed to a lower than anticipated initial growth guide provided by the company.
Despite a reported $16.3 million non-cash goodwill impairment and increased warranty expenses, Mueller Water Products' fiscal 2025 projections include consolidated net sales between $1.34 billion and $1.36 billion, and adjusted EBITDA between $300 million and $305 million. These are the latest developments for Mueller Water Products, reflecting a dynamic business landscape.
InvestingPro Insights
The recent insider transaction by Lydia W. Thomas aligns with Mueller Water Products' strong market performance. According to InvestingPro data, MWA's stock has shown impressive returns, with a 90.39% total return over the past year and a substantial 74.79% year-to-date return. This robust performance is reflected in the stock trading at 94.44% of its 52-week high, indicating strong investor confidence.
Mueller Water Products' financial health appears solid, with an InvestingPro Tip highlighting that the company has maintained dividend payments for 19 consecutive years. This commitment to shareholder returns is further underscored by a dividend yield of 1.08% and a dividend growth rate of 9.84% over the last twelve months.
The company's valuation metrics present an interesting picture. While trading at a P/E ratio of 33.41, which might seem high, an InvestingPro Tip suggests that MWA is trading at a low P/E ratio relative to near-term earnings growth. This is supported by a PEG ratio of 0.93, indicating potential undervaluation considering the company's growth prospects.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for Mueller Water Products, providing a deeper understanding of the company's financial position and market outlook.
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