Principal Financial Group Inc. Sells 1,246,458 Shares of Zurn Elkay Water Solutions Cor $ZWS

Key Points

• Principal Financial Group cut its stake in Zurn Elkay Water Solutions by 59% in the fourth quarter, selling 1,246,458 shares and leaving it with 865,603 shares valued at about $40.2 million.
• ZWS reported better-than-expected first-quarter earnings, posting $0.41 EPS on revenue of $433 million, both above estimates, with revenue up 11.4% year over year.
• Analyst sentiment remains constructive overall, with a Moderate Buy consensus and an average price target of $54.88; the stock also recently declared a quarterly dividend of $0.11 per share.

Principal Financial Group Inc. decreased its position in Zurn Elkay Water Solutions Cor (NYSE:ZWS - Free Report) by 59.0% during the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 865,603 shares of the company's stock after selling 1,246,458 shares during the period. Principal Financial Group Inc. owned 0.52% of Zurn Elkay Water Solutions Cor worth $40,242,000 at the end of the most recent quarter.

Several other hedge funds have also added to or reduced their stakes in ZWS. Empowered Funds LLC bought a new position in Zurn Elkay Water Solutions Cor during the first quarter worth about $277,000. Woodline Partners LP bought a new position in Zurn Elkay Water Solutions Cor during the first quarter worth about $4,632,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Zurn Elkay Water Solutions Cor by 5.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 488,985 shares of the company's stock worth $16,127,000 after buying an additional 24,348 shares during the last quarter. American Century Companies Inc. boosted its holdings in Zurn Elkay Water Solutions Cor by 3.8% during the second quarter. American Century Companies Inc. now owns 48,161 shares of the company's stock worth $1,761,000 after buying an additional 1,768 shares during the last quarter. Finally, Russell Investments Group Ltd. boosted its holdings in Zurn Elkay Water Solutions Cor by 4.1% during the second quarter. Russell Investments Group Ltd. now owns 18,042 shares of the company's stock worth $660,000 after buying an additional 718 shares during the last quarter. Institutional investors own 83.33% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have recently commented on ZWS. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $50.00 price target on shares of Zurn Elkay Water Solutions Cor in a research report on Thursday, February 5th. Weiss Ratings raised Zurn Elkay Water Solutions Cor from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, April 29th. UBS Group set a $56.00 price target on Zurn Elkay Water Solutions Cor in a research report on Thursday, April 23rd. Stifel Nicolaus raised their price target on Zurn Elkay Water Solutions Cor from $53.00 to $59.00 and gave the stock a "buy" rating in a research report on Thursday, April 23rd. Finally, Oppenheimer reaffirmed an "outperform" rating and set a $58.00 price target on shares of Zurn Elkay Water Solutions Cor in a research report on Thursday, April 23rd. Four investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, Zurn Elkay Water Solutions Cor has an average rating of "Moderate Buy" and a consensus price target of $54.88.

Zurn Elkay Water Solutions Cor Stock Up 0.3%

NYSE:ZWS opened at $51.18 on Friday. The firm has a market capitalization of $8.54 billion, a price-to-earnings ratio of 41.27, a price-to-earnings-growth ratio of 2.02 and a beta of 1.11. Zurn Elkay Water Solutions Cor has a twelve month low of $34.91 and a twelve month high of $53.76. The stock's 50 day moving average price is $47.88 and its two-hundred day moving average price is $47.73. The company has a quick ratio of 2.11, a current ratio of 3.24 and a debt-to-equity ratio of 0.31.

Zurn Elkay Water Solutions Cor (NYSE:ZWS - Get Free Report) last issued its earnings results on Tuesday, April 21st. The company reported $0.41 EPS for the quarter, topping the consensus estimate of $0.37 by $0.04. Zurn Elkay Water Solutions Cor had a return on equity of 17.40% and a net margin of 12.26%.The company had revenue of $433.00 million during the quarter, compared to the consensus estimate of $418.99 million. During the same period in the previous year, the company posted $0.31 EPS. The firm's revenue for the quarter was up 11.4% compared to the same quarter last year. Equities research analysts expect that Zurn Elkay Water Solutions Cor will post 1.75 earnings per share for the current fiscal year.

Zurn Elkay Water Solutions Cor Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Investors of record on Wednesday, May 20th will be paid a $0.11 dividend. The ex-dividend date is Wednesday, May 20th. This represents a $0.44 annualized dividend and a yield of 0.9%. Zurn Elkay Water Solutions Cor's payout ratio is 35.48%.

Insiders Place Their Bets

In related news, Director Timothy J. Jahnke sold 25,000 shares of the business's stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $51.18, for a total value of $1,279,500.00. Following the completion of the sale, the director directly owned 266,864 shares in the company, valued at $13,658,099.52. The trade was a 8.57% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Jeffrey J. Lavalle sold 946 shares of the business's stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $51.63, for a total value of $48,841.98. Following the completion of the sale, the vice president owned 51,868 shares of the company's stock, valued at $2,677,944.84. This trade represents a 1.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 581,359 shares of company stock worth $30,322,485 over the last three months. 2.40% of the stock is currently owned by corporate insiders.

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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