Michael Troutman, Chief Information Officer of Zurn Elkay Water Solutions Corp (NYSE:ZWS), sold 4,811 shares of the company’s common stock on November 7, 2024. The shares were sold at a weighted average price of $39.15, amounting to a total transaction value of approximately $188,350. This sale was executed to satisfy tax withholding obligations related to the vesting of performance stock units.
Following this transaction, Troutman holds 47,950 shares directly. Additionally, he maintains indirect ownership of 1,524 shares through a 401(k) plan. The report also notes that Troutman holds several stock options, which are fully vested, allowing for future rights to purchase more shares.
In other recent news, Zurn Elkay Water Solutions Corporation has reported promising results in its Third Quarter 2024 Earnings Call. The company exceeded its guidance, achieving a 4% core growth and a 9% increase in adjusted EBITDA, which led to a significant margin improvement. Additionally, Zurn Elkay raised its full-year free cash flow outlook to approximately $260 million and increased its quarterly dividend by 12.5%, demonstrating confidence in its financial stability and future prospects.
Total (EPA:TTEF) Q3 sales reached $410 million, fueled by growth in non-residential markets, while residential sales remained steady. The company's net debt stands at $308 million, with a leverage ratio of 0.8 times. Looking forward, Zurn Elkay anticipates low single-digit core sales growth in Q4 2024 and maintains a strong EBITDA margin of 25% year-to-date.
The company has expressed confidence in market resilience and growth potential, backed by strong institutional and commercial construction indicators. Projections for non-residential construction starts in 2025 show improvement, with the company maintaining a cautious optimism. Zurn Elkay's capital allocation strategy is focused on increasing shareholder returns and exploring merger and acquisition opportunities. These are among the recent developments in the company's performance and strategy.
InvestingPro Insights
As Michael Troutman, CIO of Zurn Elkay Water Solutions Corp (NYSE:ZWS), executed a sale of shares to meet tax obligations, it's worth examining the company's current financial position and market performance.
According to InvestingPro data, Zurn Elkay Water Solutions boasts a market capitalization of $6.63 billion, reflecting its substantial presence in the water solutions industry. The company's revenue for the last twelve months as of Q3 2024 stood at $1.55 billion, with a modest growth of 2.55% over the same period.
Notably, Zurn Elkay's stock has demonstrated strong performance, with a 29.59% price total return over the past three months and an impressive 39.91% return over the last year. This upward trajectory aligns with an InvestingPro Tip indicating that the company has shown a strong return over the last three months.
Another InvestingPro Tip suggests that net income is expected to grow this year, which could be a positive signal for investors. However, it's important to note that the stock is trading at a high P/E ratio of 49.11, which may indicate that the market has high growth expectations for the company.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Zurn Elkay Water Solutions, providing a deeper insight into the company's financial health and market position.
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