Todd A. Adams, the Chairman and CEO of Zurn Elkay Water Solutions Corp (NYSE:ZWS), recently sold shares worth approximately $11.3 million, according to a Form 4 filing with the SEC. The sales occurred over two days, with prices ranging from $39.14 to $39.83 per share.
On November 6, Adams sold 120,000 shares at an average price of $39.83, and on November 7, he sold another 167,508 shares at an average price of $39.14. The transactions were part of routine financial management and tax obligations related to vested performance stock units.
Adams also engaged in multiple non-sale transactions, including the acquisition of shares through option exercises at prices between $11.37 and $14.22, totaling approximately $7.6 million. Additionally, shares were withheld to cover tax obligations, with a total value of $15.3 million at $38.48 per share.
These transactions reflect Adams’ ongoing management of his equity holdings in Zurn Elkay, a company known for its water solutions and industrial machinery.
In other recent news, Zurn Elkay Water Solutions Corporation reported robust earnings in its Third Quarter 2024 Earnings Call. The company exceeded its guidance, achieving a 4% core growth and a 9% increase in adjusted EBITDA, resulting in improved margins. Zurn Elkay also raised its full-year free cash flow outlook to approximately $260 million and increased its quarterly dividend by 12.5%, indicating a positive outlook on its financial health.
Total (EPA:) Q3 sales reached $410 million, driven by growth in non-residential markets, while residential sales remained steady. The company expects low single-digit core sales growth in Q4 2024 and maintains a strong EBITDA margin of 25% year-to-date.
In terms of future prospects, Zurn Elkay is focusing on M&A opportunities within the U.S. that align with their existing product lines. The company is also committed to sustainability, particularly in Michigan’s clean drinking water initiatives. These are the recent developments in the company’s performance and strategy.
InvestingPro Insights
To complement the recent insider activity at Zurn Elkay Water Solutions Corp (NYSE:ZWS), InvestingPro data provides additional context for investors. The company’s market capitalization stands at $6.63 billion, reflecting its significant presence in the water solutions industry.
Zurn Elkay’s financial performance has been robust, with revenue reaching $1.55 billion in the last twelve months as of Q3 2024, showing a growth of 2.55%. This steady revenue growth aligns with the company’s position as a key player in the water solutions sector.
InvestingPro Tips highlight that Zurn Elkay’s net income is expected to grow this year, and analysts have revised their earnings upwards for the upcoming period. These positive indicators suggest confidence in the company’s financial trajectory, which may be influencing executive decisions regarding stock transactions.
The company’s P/E ratio of 49.11 and P/E ratio (adjusted) of 42.66 for the last twelve months indicate that investors are willing to pay a premium for Zurn Elkay’s shares, possibly due to growth expectations. This high valuation multiple is consistent with the InvestingPro Tip noting that the company is trading at a high earnings multiple relative to near-term earnings growth.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Zurn Elkay Water Solutions Corp, providing a deeper dive into the company’s financial health and market position.
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