Zurn Elkay Water Solutions Cor (NYSE:ZWS) Shares Cross Below 200 Day Moving Average - What's Next?

Key Points

• ZWS shares fell below their 200-day moving average, trading as low as $42.89 versus the $48.28 average, and were last quoted near $43.31.
• Third-quarter results modestly beat expectations: adjusted EPS was $0.52 versus $0.50 expected, while revenue rose 8.7% year over year to $495.1 million. The company also increased its quarterly dividend by 18% to $0.13.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and a $57 average price target, though the stock’s decline reflects concerns about its valuation and only slight revenue outperformance.

Zurn Elkay Water Solutions Cor (NYSE:ZWS - Get Free Report) shares crossed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $48.28 and traded as low as $42.89. Zurn Elkay Water Solutions Cor shares last traded at $43.3090, with a volume of 2,515,117 shares.

More Zurn Elkay Water Solutions Cor News

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

Analyst Ratings Changes

A number of research analysts have weighed in on the company. Barclays upped their target price on Zurn Elkay Water Solutions Cor from $59.00 to $61.00 and gave the stock an "overweight" rating in a report on Friday, July 31st. Zacks Research cut Zurn Elkay Water Solutions Cor from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, October 20th. Oppenheimer lifted their price target on Zurn Elkay Water Solutions Cor from $58.00 to $60.00 and gave the company an "outperform" rating in a research report on Wednesday, September 9th. Stifel Nicolaus upped 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 note on Thursday, July 30th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Zurn Elkay Water Solutions Cor in a research note on Thursday, October 22nd. Five investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, Zurn Elkay Water Solutions Cor currently has an average rating of "Moderate Buy" and a consensus target price of $57.00.

Zurn Elkay Water Solutions Cor Trading Down 11.9%

The firm's 50 day moving average price is $47.28 and its 200-day moving average price is $48.28. The stock has a market cap of $7.18 billion, a P/E ratio of 26.73, a P/E/G ratio of 1.77 and a beta of 1.07. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.05 and a quick ratio of 2.13.

Zurn Elkay Water Solutions Cor (NYSE:ZWS - Get Free Report) last posted 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 firm had revenue of $495.10 million for the quarter, compared to analysts' expectations of $493.36 million. Zurn Elkay Water Solutions Cor had a net margin of 15.45% and a return on equity of 18.01%. The business's revenue for the quarter was up 8.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.43 earnings per share. As a group, equities research analysts forecast that Zurn Elkay Water Solutions Cor will post 1.83 earnings per share for the current year.

Zurn Elkay Water Solutions Cor Increases Dividend

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

Insider Buying and Selling

In other Zurn Elkay Water Solutions Cor news, Director Jacques Butler bought 2,016 shares of Zurn Elkay Water Solutions Cor stock in a transaction on Wednesday, August 19th. The stock was acquired at an average price of $49.60 per share, with a total value of $99,993.60. Following the acquisition, the director owned 37,487 shares in the company, valued at approximately $1,859,355.20. This trade represents a 5.68% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 2.40% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of ZWS. BlackRock Inc. bought a new position in shares of Zurn Elkay Water Solutions Cor in the 2nd quarter worth approximately $1,241,345,000. Bank of America Corp DE purchased a new position in shares of Zurn Elkay Water Solutions Cor in the second quarter worth approximately $278,160,000. Jupiter Topco LLC purchased a new position in shares of Zurn Elkay Water Solutions Cor in the second quarter worth approximately $172,287,000. Bank of New York Mellon Corp bought a new stake in Zurn Elkay Water Solutions Cor during the second quarter valued at approximately $55,207,000. Finally, Legal & General Group Plc bought a new stake in Zurn Elkay Water Solutions Cor during the second quarter valued at approximately $40,264,000. Hedge funds and other institutional investors own 83.33% of the company's stock.

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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