It was reported on November 6, that Mark W Peterson, Chief Administrative Officer at Zurn Elkay Water ZWS executed a significant insider sell, according to an SEC filing.

What Happened: Peterson opted to sell 40,000 shares of Zurn Elkay Water, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The transaction’s total worth stands at $1,486,552.

The latest update on Thursday morning shows Zurn Elkay Water shares down by 0.0%, trading at $39.91.

Discovering Zurn Elkay Water: A Closer Look

Zurn Elkay Water Solutions Corp designs procure, manufactures, and markets a range of clean water solutions for drinking water, hygiene, and sustainable water management. The Zurn Elkay product portfolio includes professional-grade water control and safety, water distribution and drainage, drinking water, finish plumbing, hygienic, environmental and site works products for public and private spaces.

Zurn Elkay Water’s Financial Performance

Revenue Growth: Zurn Elkay Water’s remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 2.91%. This signifies a substantial increase in the company’s top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Profitability Metrics:

• Gross Margin: With a high gross margin of 46.2%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Zurn Elkay Water’s EPS reflects a decline, falling below the industry average with a current EPS of 0.25.

Debt Management: Zurn Elkay Water’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.35.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 51.17, Zurn Elkay Water’s stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 4.51 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Zurn Elkay Water’s EV/EBITDA ratio, surpassing industry averages at 23.21, positions it with an above-average valuation in the market.

Market Capitalization Analysis: Below industry benchmarks, the company’s market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Understanding the Significance of Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.

Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Deciphering Transaction Codes in Insider Filings

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Zurn Elkay Water’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.