Zurn Elkay Water Solutions Cor (NYSE:ZWS) Sets New 12-Month High on Better-Than-Expected Earnings

Zurn Elkay Water Solutions Cor (NYSE:ZWS)’s share price hit a new 52-week high during mid-day trading on Wednesday following a better than expected earnings announcement. The company traded as high as $52.76 and last traded at $51.6140, with a volume of 205158 shares changing hands. The stock had previously closed at $47.06.

The company reported $0.36 EPS for the quarter, topping analysts’ consensus estimates of $0.34 by $0.02. The firm had revenue of $407.20 million during the quarter, compared to analysts’ expectations of $400.75 million. Zurn Elkay Water Solutions Cor had a net margin of 11.68% and a return on equity of 16.63%. The firm’s revenue for the quarter was up 9.8% compared to the same quarter last year. During the same period in the previous year, the company earned $0.32 EPS.

Zurn Elkay Water Solutions Cor Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 6th. Shareholders of record on Friday, February 20th will be given a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Friday, February 20th. Zurn Elkay Water Solutions Cor’s payout ratio is 39.29%.

Analyst Ratings Changes

A number of brokerages recently issued reports on ZWS. Zacks Research lowered Zurn Elkay Water Solutions Cor from a “strong-buy” rating to a “hold” rating in a research note on Monday, December 29th. Jefferies Financial Group assumed coverage on Zurn Elkay Water Solutions Cor in a research note on Friday, December 12th. They issued a “buy” rating and a $58.00 target price on the stock. Oppenheimer set a $53.00 target price on shares of Zurn Elkay Water Solutions Cor and gave the company an “outperform” rating in a research note on Friday, October 31st. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Zurn Elkay Water Solutions Cor in a research note on Monday, December 29th. Finally, Royal Bank Of Canada initiated coverage on shares of Zurn Elkay Water Solutions Cor in a report on Monday, January 5th. They set a “sector perform” rating and a $49.00 price objective for the company. Four equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $45.50.

Insider Activity

In other news, Director Timothy J. Jahnke sold 10,539 shares of the firm’s stock in a transaction on Friday, November 7th. The stock was sold at an average price of $47.51, for a total transaction of $500,707.89. Following the transaction, the director owned 169,461 shares in the company, valued at approximately $8,051,092.11. This trade represents a 5.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 2.60% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Advisory Services Network LLC purchased a new stake in shares of Zurn Elkay Water Solutions Cor in the 3rd quarter worth approximately $25,000. Whittier Trust Co. bought a new position in Zurn Elkay Water Solutions Cor in the second quarter worth approximately $26,000. First Horizon Advisors Inc. lifted its holdings in Zurn Elkay Water Solutions Cor by 249.8% during the second quarter. First Horizon Advisors Inc. now owns 703 shares of the company’s stock worth $26,000 after buying an additional 502 shares during the period. V Square Quantitative Management LLC bought a new stake in Zurn Elkay Water Solutions Cor during the 4th quarter valued at $26,000. Finally, Fifth Third Bancorp boosted its position in Zurn Elkay Water Solutions Cor by 49.7% during the 3rd quarter. Fifth Third Bancorp now owns 771 shares of the company’s stock valued at $36,000 after acquiring an additional 256 shares in the last quarter. Hedge funds and other institutional investors own 83.33% of the company’s stock.

Zurn Elkay Water Solutions Cor Price Performance

The firm has a market capitalization of $8.65 billion, a PE ratio of 44.95, a P/E/G ratio of 1.94 and a beta of 1.08. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.83 and a current ratio of 2.78. The stock has a fifty day moving average price of $47.10 and a 200-day moving average price of $46.11.

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.