Engaging In Options Activity, David J Pauli Exercises Options Valued At $98K In Zurn Elkay Water Solns

A substantial insider activity was disclosed on May 14, as Pauli, Chief Financial Officer at Zurn Elkay Water Solns ZWS, reported the exercise of a large sell of company stock options.

What Happened: In an insider options sale disclosed in a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission, Pauli, Chief Financial Officer at Zurn Elkay Water Solns, exercised stock options for 4,068 shares of ZWS. The transaction value amounted to $98,486.

Zurn Elkay Water Solns shares are trading down 0.0% at $36.88 at the time of this writing on Thursday morning. Since the current price is $36.88, this makes Pauli's 4,068 shares worth $98,486.

Discovering Zurn Elkay Water Solns: A Closer Look

Zurn Elkay Water Solutions Corp designs procures, manufactures, and markets a range of clean water solutions for drinking water, hygiene, and sustainable water management. The company's 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.

A Deep Dive into Zurn Elkay Water Solns's Financials

Revenue Growth: Over the 3 months period, Zurn Elkay Water Solns showcased positive performance, achieving a revenue growth rate of 4.01% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Navigating Financial Profits:

• Gross Margin: Achieving a high gross margin of 46.55%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Zurn Elkay Water Solns's EPS reflects a decline, falling below the industry average with a current EPS of 0.26.

Debt Management: With a below-average debt-to-equity ratio of 0.36, Zurn Elkay Water Solns adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 38.42, Zurn Elkay Water Solns's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 4.05, Zurn Elkay Water Solns's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 19.4, Zurn Elkay Water Solns demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Why Pay Attention to Insider Transactions

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per 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.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Essential Transaction Codes Unveiled

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 Solns's Insider Trades.

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