MILWAUKEE—Mark W. Peterson, the Chief Administrative Officer of Zurn Elkay Water Solutions Corp (NYSE:ZWS), recently executed a notable stock transaction. According to a Form 4 filing with the Securities and Exchange Commission, Peterson sold 22,203 shares of common stock on November 7, 2024. The shares were sold at an average price of $39.15, resulting in a total transaction value of approximately $869,247.
The sale was conducted to cover tax withholding obligations and related fees associated with the vesting of performance stock units. Following this transaction, Peterson retains direct ownership of 383,910 shares of Zurn Elkay Water Solutions common stock.
Additionally, the filing disclosed that Peterson acquired 45,386 shares on November 6, 2024, as part of a performance stock unit vesting, though this acquisition was for no consideration.
Zurn Elkay Water Solutions, based in Milwaukee, specializes in general industrial machinery and equipment. The company's stock is listed on the New York Stock Exchange under the ticker ZWS.
In other recent news, Zurn Elkay Water Solutions Corporation reported a robust performance in its Third Quarter 2024 Earnings Call. The company posted a 4% core growth and a 9% increase in adjusted EBITDA, resulting in a significant margin improvement. Furthermore, Zurn Elkay raised its full-year free cash flow outlook to approximately $260 million and increased its quarterly dividend by 12.5%, indicating confidence in its financial health.
Total (EPA:TTEF) Q3 sales for the company reached $410 million, primarily driven by growth in non-residential markets. Additionally, Zurn Elkay expects low single-digit core sales growth in Q4 2024 and maintains a strong EBITDA margin of 25% year-to-date. The company's net debt stands at $308 million, with a leverage ratio of 0.8 times.
Among these recent developments, the company expressed confidence in market resilience and growth potential, supported by strong institutional and commercial construction indicators. Projections for non-residential construction starts in 2025 show improvement, and the company anticipates core sales growth in low single digits for Q4 2024 and a similar outlook for the full year. Zurn Elkay's capital allocation strategy is focused on increasing shareholder returns and exploring M&A opportunities.
InvestingPro Insights
Zurn Elkay Water Solutions Corp (NYSE:ZWS) has been demonstrating strong financial performance, aligning with the recent insider transaction. According to InvestingPro data, the company's market capitalization stands at $6.63 billion, reflecting its substantial presence in the industrial machinery sector.
InvestingPro Tips highlight that ZWS's net income is expected to grow this year, and the company has been profitable over the last twelve months. This positive outlook is further supported by the fact that seven analysts have revised their earnings upwards for the upcoming period, suggesting confidence in the company's financial trajectory.
The company's revenue for the last twelve months as of Q3 2024 was $1.55 billion, with a modest growth of 2.55%. More impressively, ZWS has shown a strong return over the last three months, with a price total return of 29.59%. This recent performance may have influenced the timing of Mr. Peterson's stock sale.
It's worth noting that ZWS operates with a moderate level of debt and its liquid assets exceed short-term obligations, indicating a solid financial position. The company also boasts a gross profit margin of 45.2% for the last twelve months, showcasing its operational efficiency.
While the stock's P/E ratio of 49.11 suggests it's trading at a high earnings multiple, the company's consistent profitability and analyst optimism may justify this valuation. Investors considering ZWS should be aware that InvestingPro offers 13 additional tips for this stock, providing a more comprehensive analysis for those seeking deeper insights.
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