Ice Mountain LLC Implements A Sell Strategy: Offloads $3.21M In Zurn Elkay Water Stock

Ice Mountain LLC, 10% Owner at Zurn Elkay Water ZWS, reported an insider sell on April 9, according to a new SEC filing.

What Happened: LLC's recent move involves selling 100,000 shares of Zurn Elkay Water. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value is $3,212,518.

Zurn Elkay Water shares are trading down 2.46% at $31.72 at the time of this writing on Wednesday morning.

All You Need to Know About Zurn Elkay Water

Zurn Elkay Water Solutions Corp designs procure, manufactures, and markets a range of clean water solutions for drinking water, hygiene, and sustainable water management. The Zurn Elkay product portfolio includes professional-grade water control and safety, water distribution and drainage, drinking water, finish plumbing, hygienic, environmental and site works products for public and private spaces.

Financial Milestones: Zurn Elkay Water's Journey

Positive Revenue Trend: Examining Zurn Elkay Water's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.85% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Analyzing Profitability Metrics:

• Gross Margin: Achieving a high gross margin of 43.69%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): With an EPS below industry norms, Zurn Elkay Water exhibits below-average bottom-line performance with a current EPS of 0.08.

Debt Management: With a below-average debt-to-equity ratio of 0.34, Zurn Elkay Water adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Overview:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 55.12, Zurn Elkay Water's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: The current P/S ratio of 3.77 is above industry norms, reflecting an elevated valuation for Zurn Elkay Water's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 22.1, Zurn Elkay Water demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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The Relevance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Cracking Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Zurn Elkay Water's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.