Zurn Elkay Water Solutions Cor (NYSE:ZWS) Plans Dividend Increase - $0.13 Per Share

Key Points

• Zurn Elkay Water Solutions raised its quarterly dividend 18.2% to $0.13 per share, payable December 7 to shareholders of record November 20. The new annualized dividend is $0.52 per share, representing a 1.1% yield.
• The dividend appears well covered, with a current payout ratio of 29.9% and an expected future payout ratio of 21.7% based on projected earnings.
• The company recently exceeded quarterly earnings and revenue expectations, while analysts maintain a “Moderate Buy” consensus rating with an average price target of $57, above the reported share price of $48.56.

Zurn Elkay Water Solutions Cor (NYSE:ZWS - Get Free Report) announced a quarterly dividend on Thursday, October 22nd. Stockholders of record on Friday, November 20th will be given a dividend of $0.13 per share on Monday, December 7th. This represents a $0.52 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Friday, November 20th. This is a 18.2% increase from Zurn Elkay Water Solutions Cor's previous quarterly dividend of $0.11.

Zurn Elkay Water Solutions Cor has a dividend payout ratio of 29.9% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Zurn Elkay Water Solutions Cor to earn $2.03 per share next year, which means the company should continue to be able to cover its $0.44 annual dividend with an expected future payout ratio of 21.7%.

Zurn Elkay Water Solutions Cor Price Performance

Shares of ZWS stock opened at $48.56 on Friday. Zurn Elkay Water Solutions Cor has a fifty-two week low of $43.06 and a fifty-two week high of $55.00. The firm has a market capitalization of $8.05 billion, a price-to-earnings ratio of 29.98, a PEG ratio of 1.76 and a beta of 1.07. The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.13 and a current ratio of 3.05. The stock's 50-day simple moving average is $47.44 and its 200-day simple moving average is $48.50.

Zurn Elkay Water Solutions Cor (NYSE:ZWS - Get Free Report) last issued its earnings results on Tuesday, July 28th. The company reported $0.50 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.47 by $0.03. Zurn Elkay Water Solutions Cor had a return on equity of 18.01% and a net margin of 15.45%. The company had revenue of $491.00 million during the quarter, compared to analyst estimates of $483.04 million. During the same quarter last year, the business posted $0.42 EPS. The firm's quarterly revenue was up 10.5% on a year-over-year basis. As a group, equities analysts forecast that Zurn Elkay Water Solutions Cor will post 1.83 earnings per share for the current fiscal year.

Analyst Ratings Changes

ZWS has been the subject of several recent analyst reports. Weiss Ratings restated a "buy (b)" rating on shares of Zurn Elkay Water Solutions Cor in a research note on Thursday. Robert W. Baird set a $58.00 price target on Zurn Elkay Water Solutions Cor in a research report on Thursday, July 30th. Royal Bank Of Canada cut their price objective 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. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $55.00 target price on shares of Zurn Elkay Water Solutions Cor in a research note on Wednesday, July 29th. Finally, Zacks Research lowered Zurn Elkay Water Solutions Cor from a "strong-buy" rating to a "hold" rating in a research report on Tuesday. Five investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, Zurn Elkay Water Solutions Cor presently has an average rating of "Moderate Buy" and a consensus target price of $57.00.

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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