Zurn Elkay Water Solutions Cor (NYSE:ZWS) Posts Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Quarterly beat: Zurn Elkay reported EPS of $0.41 versus $0.37 expected and revenue of $433.0M versus $419.0M, with a net margin of 11.68% and ROE of 16.54%.
• Insider selling notable: Insiders sold 599,259 shares (~$31.2M) over the last 90 days, leaving insiders with about 2.40% ownership.
• Dividend and market view: The company pays a $0.11 quarterly dividend (annualized $0.44, yield 0.9%), trades at a P/E of ~41.6, and carries a consensus analyst target of $54 ("Moderate Buy").

Zurn Elkay Water Solutions Cor (NYSE:ZWS - Get Free Report) released its quarterly earnings results on Tuesday. The company reported $0.41 EPS for the quarter, beating the consensus estimate of $0.37 by $0.04, FiscalAI reports. The firm had revenue of $433.00 million during the quarter, compared to analyst estimates of $418.99 million. Zurn Elkay Water Solutions Cor had a net margin of 11.68% and a return on equity of 16.54%.

Zurn Elkay Water Solutions Cor Price Performance

Shares of ZWS traded up $0.01 during mid-day trading on Tuesday, reaching $47.79. The stock had a trading volume of 1,904,987 shares, compared to its average volume of 1,039,531. The business has a fifty day moving average of $47.78 and a 200 day moving average of $47.35. The company has a debt-to-equity ratio of 0.31, a quick ratio of 2.07 and a current ratio of 3.13. The firm has a market cap of $8.01 billion, a price-to-earnings ratio of 41.55, a PEG ratio of 1.99 and a beta of 1.07. Zurn Elkay Water Solutions Cor has a 12 month low of $29.94 and a 12 month high of $53.17.

Zurn Elkay Water Solutions Cor Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, March 6th. Shareholders of record on Friday, February 20th were given a $0.11 dividend. This represents a $0.44 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date was Friday, February 20th. Zurn Elkay Water Solutions Cor's dividend payout ratio is presently 38.26%.

Insider Activity

In other Zurn Elkay Water Solutions Cor news, VP Jeffrey J. Lavalle sold 946 shares of the stock in a transaction on Wednesday, February 11th. The stock was 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 in the company, valued at approximately $2,677,944.84. This represents a 1.79% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Timothy J. Jahnke sold 25,000 shares of the firm's stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $51.18, for a total value of $1,279,500.00. Following the sale, the director directly owned 266,864 shares in the company, valued at approximately $13,658,099.52. This represents a 8.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 599,259 shares of company stock worth $31,225,361. 2.40% of the stock is currently owned by insiders.

Institutional Trading of Zurn Elkay Water Solutions Cor

Institutional investors have recently made changes to their positions in the business. Advisory Services Network LLC purchased a new position in Zurn Elkay Water Solutions Cor in the 3rd quarter worth approximately $25,000. Kemnay Advisory Services Inc. purchased a new stake in Zurn Elkay Water Solutions Cor during the 4th quarter valued at approximately $35,000. Allworth Financial LP raised its position in shares of Zurn Elkay Water Solutions Cor by 507.5% during the third quarter. Allworth Financial LP now owns 978 shares of the company's stock valued at $46,000 after buying an additional 817 shares during the last quarter. UMB Bank n.a. raised its position in shares of Zurn Elkay Water Solutions Cor by 24.2% during the fourth quarter. UMB Bank n.a. now owns 1,233 shares of the company's stock valued at $57,000 after buying an additional 240 shares during the last quarter. Finally, Aquatic Capital Management LLC purchased a new position in shares of Zurn Elkay Water Solutions Cor in the third quarter worth $61,000. Hedge funds and other institutional investors own 83.33% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have commented on ZWS shares. Royal Bank Of Canada upped their target price on shares of Zurn Elkay Water Solutions Cor from $49.00 to $55.00 and gave the company a "sector perform" rating in a report on Thursday, February 5th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Zurn Elkay Water Solutions Cor in a research note on Monday, December 29th. Stifel Nicolaus cut their price objective on shares of Zurn Elkay Water Solutions Cor from $59.00 to $53.00 and set a "buy" rating for the company in a research report on Tuesday, April 14th. Robert W. Baird set a $56.00 price objective on Zurn Elkay Water Solutions Cor in a research note on Thursday, February 5th. Finally, Zacks Research downgraded Zurn Elkay Water Solutions Cor from a "strong-buy" rating to a "hold" rating in a research report on Monday, December 29th. Four investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $54.00.

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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