Jeffrey J. LaValle, Vice President, General Counsel & Secretary at Zurn Elkay Water Solutions Corp (NYSE:ZWS), recently sold shares of the company's common stock. According to a recent filing, LaValle sold 3,132 shares on November 7 at a weighted average price of $39.15 per share, totaling approximately $122,617. This transaction was conducted to cover tax withholding obligations related to the vesting of performance stock units.
Additionally, on November 6, LaValle acquired 7,564 shares at no cost upon the vesting of performance stock units, bringing his total direct holdings to 38,554 shares following these transactions. The acquisition was based on the company's performance over a three-year period.
In other recent news, Zurn Elkay Water Solutions Corporation announced robust results in its Third Quarter 2024 Earnings Call. The company posted a 4% core growth and a 9% increase in adjusted EBITDA, while improving its margins by 150 basis points year-over-year to 25.6%. Additionally, Zurn Elkay raised its full-year free cash flow outlook to approximately $260 million and increased its quarterly dividend by 12.5%.
Total (EPA:TTEF) sales for the third quarter reached $410 million, largely driven by growth in non-residential markets. The company's net debt stands at $308 million, with a leverage ratio of 0.8 times. CEO Todd Adams highlighted the company's commitment to sustainability, especially in Michigan's clean drinking water initiatives.
In terms of future prospects, 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 also projects a Q4 adjusted EBITDA between $88 million and $90 million. These recent developments reflect Zurn Elkay's confidence in market resilience and growth potential, backed by strong institutional and commercial construction indicators.
InvestingPro Insights
As Jeffrey J. LaValle adjusts his position in Zurn Elkay Water Solutions Corp (NYSE:ZWS), investors may find value in examining the company's current financial landscape. According to InvestingPro data, ZWS 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 stands at $1.55 billion, with a modest growth of 2.55% over the same period.
InvestingPro Tips highlight that ZWS has been profitable over the last twelve months, with analysts expecting net income to grow this year. This positive outlook is further supported by 7 analysts revising their earnings estimates upwards for the upcoming period, suggesting confidence in the company's near-term performance.
However, investors should note that ZWS is trading at a high P/E ratio of 49.11, which may indicate that the stock is priced at a premium relative to its earnings. This is corroborated by another InvestingPro Tip pointing out that the company is trading at a high earnings multiple.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips for ZWS, providing a more comprehensive view of the company's financial health and market position. These insights can be particularly valuable for investors looking to make informed decisions in light of recent insider transactions.
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