In a recent SEC filing, Mueller Water Products, Inc. (NYSE:MWA) reported that Steven S. Heinrichs, the company's Executive Vice President, Chief Financial Officer, Chief Legal Officer, and Chief Compliance Officer, sold a significant portion of his holdings. On November 22, Heinrichs disposed of 86,399 shares of common stock at an average price of approximately $25.09 per share. The total value of the transaction amounted to over $2.16 million.
Following this sale, Heinrichs retains ownership of 49,509 shares, which includes 10,992 shares acquired through the company's Employee Stock Purchase Plan. The stock transactions were executed at prices ranging from $24.99 to $25.18 per share.
In other recent news, Mueller Water Products has been the subject of several noteworthy developments. The firm's financial outlook was adjusted by TD Cowen, with the price target for the company's shares raised to $23.00 from the previous $20.00, while maintaining a Hold rating on the stock. This adjustment reflects the sector's multiples and an increase in earnings per share (EPS), primarily due to a reduction in amortization expenses.
In addition, savings are expected from the facility's base case ramp, which is now in place. These savings are projected to start ramping up in the March quarter, indicating potential future financial improvements for Mueller Water Products. However, TD Cowen's EBITDA estimate for the company for fiscal year 2025 is slightly lower compared to the previous model, due to a lower than anticipated initial growth guide provided by Mueller Water Products.
On the earnings front, Mueller Water Products reported record earnings for fiscal year 2024. The company's fourth-quarter net sales rose to $348.2 million, marking a 15.5% increase year-over-year. For the full year, consolidated net sales surpassed $1.3 billion, driven by robust demand and enhanced customer service. The company also posted a record high adjusted net income per share of $0.96, up 52% from the previous year. Despite a reported $16.3 million non-cash goodwill impairment and increased warranty expenses, the company's fiscal 2025 projections include consolidated net sales between $1.34 billion and $1.36 billion, and adjusted EBITDA between $300 million and $305 million.
InvestingPro Insights
The recent insider sale by Steven S. Heinrichs comes at a time when Mueller Water Products (NYSE:MWA) is experiencing strong market performance. According to InvestingPro data, MWA's stock has shown impressive returns, with a 92.45% price total return over the past year and a 77.89% return year-to-date. This robust performance is reflected in the stock trading at 96.12% of its 52-week high.
InvestingPro Tips highlight that MWA has raised its dividend for 10 consecutive years, demonstrating a commitment to shareholder returns. The company's current dividend yield stands at 1.06%, with a dividend growth rate of 9.84% over the last twelve months. This consistent dividend policy may be attractive to income-focused investors.
Additionally, MWA's financial health appears solid, with InvestingPro Tips noting that liquid assets exceed short-term obligations and the company operates with a moderate level of debt. This financial stability could provide reassurance to investors in light of the insider sale.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for Mueller Water Products, providing a more comprehensive view of the company's prospects and potential risks.
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