Zurn Elkay Water Solutions Executive Sells More Than $700,000 in Company Shares Via Investing.com

Zurn Elkay Water Solutions Corp (NYSE:ZWS) executive Timothy J. Jahnke has sold a significant portion of his holdings in the company, according to recent filings. Jahnke unloaded a total of 19,000 shares in two separate transactions, with the combined sales amounting to more than $700,000.

The transactions, which took place on September 19 and 20, were executed at a price of $35.0 per share. Following these sales, Jahnke’s direct ownership in the company was reduced to 365,017 shares. In addition, it should be noted that Jahnke indirectly owns another 200,000 shares through an irrevocable trust.

The sales were made pursuant to a Rule 10b5-1 trading plan, which allows company insiders to establish a predetermined plan to sell stock at a time when they do not have material non-public information. This mechanism is designed to prevent any accusation of insider trading by allowing advance planning of share sales.

Investors often monitor insider trading for information about how corporate executives perceive the value of their company’s stock. Although the reasons for insider sales can vary widely, they can sometimes provide valuable context about the company’s current financial condition and future prospects.

Milwaukee, WI-based Zurn Elkay Water Solutions Corp operates in the general industrial machinery and equipment industry and has undergone several name changes in its history, formerly known as Zurn Water Solutions Corp and Rexnord (NYSE:) Corp.

For those interested in following the company’s insider trading, Zurn Elkay Water Solutions Corp trades under the symbol ZWS on the New York Stock Exchange.

In other recent news, Zurn Water Solutions has been making waves in the investment world. Zurn’s performance in the second quarter showed a 20% increase in adjusted EBITDA and notable margin expansion, with underlying growth marked at 3%. The company generated free cash flow of $80 million and repurchased nearly 2 million shares, contributing to EBITDA growth of $35 million for the first half of the year. It also surpassed $250 million in free cash flow for the full year.

Baird acknowledged Zurn’s strong performance, raising his price target for the company from $36 to $37, while maintaining a neutral rating. The firm noted Zurn’s impressive margin execution and upgraded its 2024 guidance based on better-than-expected results. A recent management change at Zurn is expected to provide more flexibility within the company, and its strong balance sheet positions it well for strategic capital deployment. These are some of the recent developments in the company’s journey.

InvestingPro Insights

As investors weigh the implications of CEO Timothy Jahnke’s recent sale of Zurn Elkay Water Solutions Corp (NYSE:ZWS) stock, it’s important to keep the company’s financials and market performance in mind. According to real-time data from InvestingPro, Zurn Elkay Water Solutions Corp currently trades at a P/E ratio of 44.52, with a slight adjustment over the trailing twelve months from Q2 2024 to 40.78. That rating comes at a time when net income is expected to rise this year, one of InvestingPro Tips that could signal confidence in the company’s earnings potential.

Additionally, the company’s revenue growth over the trailing twelve months to Q2 2024 was a modest 0.5%, with a quarterly growth of 2.18%. This steady growth is complemented by a strong gross profit margin of 44.27%, indicating sound financial management. Another key measure is the company’s market capitalization, which is currently valued at $5.95 billion.

InvestingPro Tips notes that three analysts have recently revised their forward earnings upward, suggesting a positive outlook on the company’s financial performance. Additionally, Zurn Elkay Water Solutions Corp shares are trading near their 52-week high with a price percentage of 99.03% from that peak, reflecting a strong return over the past three months.

For investors looking for more detailed analysis and additional advice, there are 12 more InvestingPro tips available at https://www.investing.com/pro/ZWS. This information could provide a more nuanced understanding of Zurn Elkay Water Solutions Corp’s stock performance and future prospects, especially in light of recent insider selling activity.

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