Zurn Elkay Water Solutions Cor (NYSE:ZWS) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Zurn Elkay Water Solutions has an average analyst rating of “Moderate Buy” from nine brokerages, with five buy ratings and four hold ratings. The average 12-month price target is $55.
• The company recently posted strong quarterly results, reporting EPS of $0.41 versus the $0.37 consensus estimate and revenue of $433 million, which topped expectations and rose 11.4% year over year.
• Zurn Elkay also pays a quarterly dividend of $0.11 per share, or $0.44 annually, implying a 0.9% yield. Institutional ownership remains high, with hedge funds and other investors holding about 83.33% of the stock.

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 stock, Marketbeat Ratings reports. Four investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. The average 12-month target price among brokerages that have covered the stock in the last year is $55.00.

ZWS has been the topic of a number of recent analyst reports. Stifel Nicolaus reduced their price objective on Zurn Elkay Water Solutions Cor from $59.00 to $56.00 and set a "buy" rating on the stock in a research note on Monday. Barclays began coverage on Zurn Elkay Water Solutions Cor in a research note on Tuesday, June 30th. They issued an "overweight" rating and a $59.00 target price for the company. Oppenheimer reaffirmed an "outperform" rating and issued a $58.00 price target on shares of Zurn Elkay Water Solutions Cor in a report on Thursday, April 23rd. UBS Group set a $56.00 price objective on shares of Zurn Elkay Water Solutions Cor in a report on Thursday, April 23rd. Finally, Royal Bank Of Canada raised their price objective on shares of Zurn Elkay Water Solutions Cor from $49.00 to $56.00 and gave the company a "sector perform" rating in a research report on Thursday, April 23rd.

Zurn Elkay Water Solutions Cor Stock Up 0.1%

Shares of ZWS opened at $47.80 on Tuesday. The company has a market capitalization of $7.98 billion, a P/E ratio of 38.55, a PEG ratio of 1.89 and a beta of 1.04. The company has a debt-to-equity ratio of 0.31, a current ratio of 3.24 and a quick ratio of 2.11. Zurn Elkay Water Solutions Cor has a one year low of $36.59 and a one year high of $53.76. The business's 50 day simple moving average is $48.37 and its 200-day simple moving average is $48.24.

Zurn Elkay Water Solutions Cor (NYSE:ZWS - Get Free Report) last released its quarterly earnings results on Tuesday, April 21st. The company reported $0.41 earnings per share for the quarter, beating analysts' consensus estimates 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 firm had revenue of $433.00 million during the quarter, compared to analysts' expectations of $418.99 million. During the same period last year, the firm posted $0.31 EPS. The business's revenue was up 11.4% on a year-over-year basis. As a group, sell-side analysts predict that Zurn Elkay Water Solutions Cor will post 1.75 EPS for the current fiscal year.

Zurn Elkay Water Solutions Cor Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Wednesday, May 20th were given a dividend of $0.11 per share. This represents a $0.44 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date was Wednesday, May 20th. Zurn Elkay Water Solutions Cor's dividend payout ratio is presently 35.48%.

Institutional Trading of Zurn Elkay Water Solutions Cor

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Norges Bank acquired a new stake in shares of Zurn Elkay Water Solutions Cor during the 4th quarter worth approximately $111,341,000. First Trust Advisors LP lifted its holdings in Zurn Elkay Water Solutions Cor by 51.9% in the fourth quarter. First Trust Advisors LP now owns 3,303,735 shares of the company's stock valued at $153,591,000 after buying an additional 1,128,917 shares during the period. Arrowstreet Capital Limited Partnership lifted its holdings in Zurn Elkay Water Solutions Cor by 4,236.7% in the first quarter. Arrowstreet Capital Limited Partnership now owns 455,834 shares of the company's stock valued at $20,440,000 after buying an additional 445,323 shares during the period. Goldman Sachs Group Inc. boosted its stake in Zurn Elkay Water Solutions Cor by 78.6% in the fourth quarter. Goldman Sachs Group Inc. now owns 906,884 shares of the company's stock valued at $42,161,000 after acquiring an additional 399,180 shares during the last quarter. Finally, UBS Group AG boosted its stake in Zurn Elkay Water Solutions Cor by 157.0% in the third quarter. UBS Group AG now owns 479,166 shares of the company's stock valued at $22,535,000 after acquiring an additional 292,747 shares during the last quarter. Institutional investors and hedge funds own 83.33% of the company's stock.

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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