Zurn Elkay Water Solutions Cor (NYSE:ZWS) Stock Has Average Target Price of $57.00

Key Points

• Analysts maintain a Moderate Buy consensus on Zurn Elkay Water Solutions, with five buy ratings and four holds. The average 12-month price target is $57, versus shares opening at $43.31.
• Third-quarter results exceeded expectations: adjusted EPS was $0.52 versus the $0.50 consensus, while revenue rose 8.7% year over year to $495.1 million.
• The company increased its quarterly dividend from $0.11 to $0.13 per share, an 18% increase, bringing the annualized dividend to $0.52 and the yield to approximately 1.2%.

Shares of Zurn Elkay Water Solutions Cor (NYSE:ZWS - Get Free Report) have been assigned an average rating of "Moderate Buy" from the nine brokerages that are covering the firm, Marketbeat reports. Four investment analysts have rated the stock with a hold recommendation and five have assigned a buy recommendation to the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $57.00.

A number of research analysts have recently commented on ZWS shares. Royal Bank Of Canada lowered their target price on Zurn Elkay Water Solutions Cor from $58.00 to $54.00 and set a "sector perform" rating for the company in a research report on Wednesday, October 14th. Oppenheimer boosted their price target on shares of Zurn Elkay Water Solutions Cor from $58.00 to $60.00 and gave the stock an "outperform" rating in a research report on Wednesday, September 9th. Robert W. Baird set a $58.00 price target on shares of Zurn Elkay Water Solutions Cor in a research note on Thursday, July 30th. Weiss Ratings reiterated a "buy (b)" rating on shares of Zurn Elkay Water Solutions Cor in a research report on Thursday, October 22nd. Finally, Barclays lifted their price objective on shares of 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.

Insider Activity at Zurn Elkay Water Solutions Cor

In related news, Director Jacques Butler purchased 2,016 shares of the company's stock in a transaction that occurred on Wednesday, August 19th. The stock was bought at an average price of $49.60 per share, for a total transaction of $99,993.60. Following the completion of the transaction, the director owned 37,487 shares in the company, valued at approximately $1,859,355.20. The trade was a 5.68% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 2.40% of the company's stock.

Institutional Investors Weigh In On Zurn Elkay Water Solutions Cor

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Arizona State Retirement System lifted its stake in Zurn Elkay Water Solutions Cor by 0.5% in the second quarter. Arizona State Retirement System now owns 41,607 shares of the company's stock worth $2,102,000 after purchasing an additional 220 shares during the last quarter. Assetmark Inc. grew its stake in shares of Zurn Elkay Water Solutions Cor by 53.0% during the first quarter. Assetmark Inc. now owns 843 shares of the company's stock valued at $38,000 after buying an additional 292 shares during the last quarter. GAMMA Investing LLC grew its stake in shares of Zurn Elkay Water Solutions Cor by 9.8% during the second quarter. GAMMA Investing LLC now owns 3,708 shares of the company's stock valued at $187,000 after buying an additional 331 shares during the last quarter. Farther Finance Advisors LLC grew its stake in shares of Zurn Elkay Water Solutions Cor by 26.1% during the third quarter. Farther Finance Advisors LLC now owns 1,688 shares of the company's stock valued at $78,000 after buying an additional 349 shares during the last quarter. Finally, Bleakley Financial Group LLC raised its holdings in shares of Zurn Elkay Water Solutions Cor by 1.8% in the first quarter. Bleakley Financial Group LLC now owns 22,285 shares of the company's stock worth $999,000 after buying an additional 394 shares during the period. 83.33% of the stock is currently owned by hedge funds and other institutional investors.

Zurn Elkay Water Solutions Cor Trading Down 11.9%

Shares of ZWS stock opened at $43.31 on Thursday. The company has a current ratio of 3.05, a quick ratio of 2.13 and a debt-to-equity ratio of 0.30. The stock has a market capitalization of $7.18 billion, a price-to-earnings ratio of 26.73, a price-to-earnings-growth ratio of 1.77 and a beta of 1.07. Zurn Elkay Water Solutions Cor has a 12-month low of $42.89 and a 12-month high of $55.00. The stock's 50-day moving average price is $47.28 and its 200-day moving average price is $48.28.

Zurn Elkay Water Solutions Cor (NYSE:ZWS - Get Free Report) last announced its quarterly earnings results on Tuesday, October 27th. The company reported $0.52 EPS for the quarter, beating analysts' consensus estimates of $0.50 by $0.02. The company had revenue of $495.10 million during the quarter, compared to analyst estimates of $493.36 million. Zurn Elkay Water Solutions Cor had a return on equity of 18.01% and a net margin of 15.45%. The firm's revenue was up 8.7% on a year-over-year basis. During the same period in the prior year, the company earned $0.43 earnings per share. Equities research analysts predict that Zurn Elkay Water Solutions Cor will post 1.83 EPS for the current fiscal year.

Zurn Elkay Water Solutions Cor Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 7th. Investors of record on Friday, November 20th will be issued a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Friday, November 20th. This is a positive change from Zurn Elkay Water Solutions Cor's previous quarterly dividend of $0.11. Zurn Elkay Water Solutions Cor's payout ratio is 32.10%.

Zurn Elkay Water Solutions Cor News Summary

Here are the key news stories impacting Zurn Elkay Water Solutions Cor this week:

• Positive Sentiment: Third-quarter adjusted EPS was $0.52, above the $0.50 analyst consensus and up from $0.43 a year earlier. Revenue increased 8.7% year over year to $495.1 million, slightly exceeding estimates of $493.4 million. Zurn Water Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Zurn Elkay raised its dividend by 18%, signaling confidence in cash generation and shareholder returns. Management also indicated that additional growth opportunities remain ahead. Zurn Elkay Q3 2026 Dividend and Growth
• Neutral Sentiment: Management provided a fourth-quarter sales outlook and discussed continued operating execution during the earnings call. Investors will look for evidence that demand and margins can support the company’s growth trajectory. Zurn Elkay Q3 2026 Earnings Call Transcript
• Negative Sentiment: The revenue beat was modest, and reports characterized quarterly sales as essentially in line with expectations. That may have limited the impact of the EPS beat, particularly with the stock trading at a valuation of roughly 27 times earnings. Zurn Elkay Q3 Sales In Line With Estimates

Zurn Elkay Water Solutions Cor Company Profile

Zurn Elkay Water Solutions Corporation NYSE: ZWS is a manufacturer of products and systems used to manage, conserve and protect water in commercial, institutional, industrial and residential buildings. The company provides plumbing and water-management solutions designed to support water distribution, drainage, safety, hygiene and efficiency.

Its product portfolio includes commercial faucets, flush valves, fixtures, drains, plumbing specialties, backflow-prevention devices, water coolers, bottle-filling stations, water filtration systems and related accessories.

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