Zurn Elkay Water Solutions Director Sells Over $700,000 in Company Stock

Zurn Elkay Water Solutions Corp Director Timothy J. Jahnke has recently sold a notable portion of his shares in the company, as indicated by recent filings. Jahnke disposed of a total of 19,000 shares in two separate transactions, totaling over $700,000.

These sales occurred on September 19 and September 20, with shares sold at a price of $35.00 each. After these transactions, Jahnke’s direct ownership in the company decreased to 365,017 shares. He also holds an additional 200,000 shares indirectly through an irrevocable trust.

The sales were carried out under a Rule 10b5-1 trading plan, enabling company insiders to set up a predetermined selling schedule during which they are not privy to non-public, material information. This framework aims to prevent any allegations of insider trading by allowing for pre-planned sales.

Investors often keep an eye on insider trading as it can offer insights into how corporate executives view the value of their company’s stock. While the motivations for insider sales can vary, they may provide useful context regarding the company’s current financial status and future outlook.

Zurn Elkay Water Solutions Corp, based in Milwaukee, WI, operates within the general industrial machinery and equipment sector. The company has undergone several name changes, having previously been known as Zurn Water Solutions Corp and Rexnord Corp.

In other recent developments, Zurn Water Solutions has made significant strides in the investment landscape. In its second-quarter performance, the company reported a 20% increase in adjusted EBITDA, alongside notable margin expansion and core growth of 3%. Zurn generated $80 million in free cash flow and repurchased nearly 2 million shares, contributing to a $35 million increase in EBITDA for the first half of the year. The company also surpassed $250 million in free cash flow for the full year.

Baird has recognized Zurn’s achievements, raising its price target from $36 to $37 while maintaining a neutral rating. The firm commended Zurn’s impressive margin execution and adjusted its 2024 guidance based on stronger-than-expected results. A recent leadership change at Zurn is anticipated to enhance the company’s flexibility, and its robust balance sheet positions it well for strategic capital deployment.

As investors reflect on Director Timothy Jahnke’s recent share sales, it is crucial to consider Zurn Elkay Water Solutions Corp’s financial metrics and market performance. Current data indicates that Zurn is trading with a P/E ratio of 44.52, slightly adjusted from 40.78 over the past twelve months as of Q2 2024. This valuation coincides with expectations of net income growth this year.

The company’s revenue growth over the last twelve months was modest at 0.5%, with a quarterly increase of 2.18%. This steady growth is paired with a healthy gross profit margin of 44.27%. Zurn’s market capitalization is valued at approximately $5.95 billion.

Recent analysis from multiple analysts suggests a positive outlook for the company’s financial performance, with upward revisions to earnings expectations for the upcoming period. Additionally, Zurn Elkay Water Solutions Corp’s stock is trading near its 52-week high, with strong returns over the last three months.

This article was generated with the support of AI and has been reviewed by an editor.