Zurn Elkay Water Solutions Cor (NYSE:ZWS) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analyst sentiment is moderately positive: Nine brokerages collectively rate Zurn Elkay Water Solutions a “Moderate Buy,” with five buy ratings, one strong-buy, and three holds. The average 12-month price target is $57.22 versus the $47.32 share price cited.
• Quarterly results exceeded expectations: The company reported adjusted earnings of $0.50 per share, beating estimates by $0.03, while revenue rose 10.5% year over year to $491 million and topped forecasts.
• Insiders and institutions remain involved: A director bought nearly $100,000 of shares, while institutional investors own 83.33% of the stock. Zurn Elkay also maintains a quarterly dividend of $0.11 per share, equivalent to a 0.9% annual yield.

Shares of Zurn Elkay Water Solutions Cor (NYSE:ZWS - Get Free Report) have received a consensus rating of "Moderate Buy" from the nine brokerages that are covering the firm, Marketbeat Ratings reports. Three research analysts have rated the stock with a hold rating, five have given a buy rating and one has issued a strong buy rating on the company. The average 12 month price objective among brokerages that have updated their coverage on the stock in the last year is $57.2222.

Several equities analysts have issued reports on ZWS shares. The Goldman Sachs Group restated a "neutral" rating and issued a $55.00 price objective on shares of Zurn Elkay Water Solutions Cor in a research note on Wednesday, July 29th. Zacks Research raised Zurn Elkay Water Solutions Cor from a "hold" rating to a "strong-buy" rating in a report on Friday, July 31st. Robert W. Baird set a $58.00 target price on Zurn Elkay Water Solutions Cor in a research report on Thursday, July 30th. Barclays raised their price target on Zurn Elkay Water Solutions Cor from $59.00 to $61.00 and gave the stock an "overweight" rating in a research note on Friday, July 31st. Finally, Stifel Nicolaus lifted their price target on Zurn Elkay Water Solutions Cor from $56.00 to $62.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th.

Insider Activity at Zurn Elkay Water Solutions Cor

In other Zurn Elkay Water Solutions Cor news, Director Jacques Butler purchased 2,016 shares of Zurn Elkay Water Solutions Cor stock in a transaction that occurred on Wednesday, August 19th. The stock was purchased at an average price of $49.60 per share, for a total transaction of $99,993.60. Following the transaction, the director directly owned 37,487 shares in the company, valued at $1,859,355.20. This trade represents a 5.68% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. 2.40% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Arizona State Retirement System boosted its stake in shares of Zurn Elkay Water Solutions Cor by 0.5% during the second quarter. Arizona State Retirement System now owns 41,607 shares of the company's stock worth $2,102,000 after buying an additional 220 shares during the period. Nykredit A S acquired a new stake in Zurn Elkay Water Solutions Cor during the 2nd quarter worth approximately $115,000. Corient Private Wealth LP grew its stake in shares of Zurn Elkay Water Solutions Cor by 24.9% in the 2nd quarter. Corient Private Wealth LP now owns 11,322 shares of the company's stock valued at $572,000 after purchasing an additional 2,260 shares during the last quarter. Amundi grew its stake in shares of Zurn Elkay Water Solutions Cor by 15.7% in the 2nd quarter. Amundi now owns 1,045,504 shares of the company's stock valued at $52,829,000 after purchasing an additional 141,916 shares during the last quarter. Finally, HighTower Advisors LLC increased its holdings in shares of Zurn Elkay Water Solutions Cor by 10.2% in the second quarter. HighTower Advisors LLC now owns 9,932 shares of the company's stock valued at $502,000 after purchasing an additional 919 shares during the period. 83.33% of the stock is owned by hedge funds and other institutional investors.

Zurn Elkay Water Solutions Cor Stock Performance

Shares of Zurn Elkay Water Solutions Cor stock opened at $47.32 on Wednesday. The firm has a market capitalization of $7.85 billion, a P/E ratio of 29.21, a P/E/G ratio of 1.75 and a beta of 1.02. Zurn Elkay Water Solutions Cor has a 52 week low of $43.06 and a 52 week high of $55.00. The company has a quick ratio of 2.13, a current ratio of 3.05 and a debt-to-equity ratio of 0.30. The firm's 50 day moving average is $49.02 and its two-hundred day moving average is $48.57.

Zurn Elkay Water Solutions Cor (NYSE:ZWS - Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The company reported $0.50 earnings per share for the quarter, topping analysts' consensus estimates of $0.47 by $0.03. The company had revenue of $491.00 million for the quarter, compared to analysts' expectations of $483.04 million. Zurn Elkay Water Solutions Cor had a net margin of 15.45% and a return on equity of 18.01%. The firm's revenue for the quarter was up 10.5% on a year-over-year basis. During the same quarter last year, the company earned $0.42 earnings per share. Research analysts forecast that Zurn Elkay Water Solutions Cor will post 1.82 EPS for the current fiscal year.

Zurn Elkay Water Solutions Cor Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 4th. Stockholders of record on Thursday, August 20th were given a dividend of $0.11 per share. The ex-dividend date was Thursday, August 20th. This represents a $0.44 dividend on an annualized basis and a dividend yield of 0.9%. Zurn Elkay Water Solutions Cor's dividend payout ratio (DPR) is 27.16%.

About Zurn Elkay Water Solutions Cor

Zurn Elkay Water Solutions Corp, trading on the NYSE under the ticker ZWS, is a global provider of water delivery and plumbing products. The company was established in October 2022 through a spin-off from Rexnord Corp, creating a standalone business focused on designing, manufacturing and marketing water system components for residential, commercial and industrial customers.

Through its Zurn segment, the company offers solutions for water delivery, drainage and waste evacuation. Product lines include valves, hydrants, backflow prevention devices, piping systems, fittings and commercial waste stations.

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