Have Insiders Sold Zurn Elkay Water Solutions Shares Recently?

Some Zurn Elkay Water Solutions Corporation (NYSE:ZWS) shareholders may be a little concerned to see that the Senior VP & Chief Administrative Officer, Mark Peterson, recently sold a substantial US$953k worth of stock at a price of US$43.05 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.0%.

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The Last 12 Months Of Insider Transactions At Zurn Elkay Water Solutions

In the last twelve months, the biggest single sale by an insider was when the CEO & Chairman, Todd Adams, sold US$8.9m worth of shares at a price of US$39.83 per share. That means that an insider was selling shares at slightly below the current price (US$44.98). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 9.0% of Todd Adams's holding.

Insiders in Zurn Elkay Water Solutions didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Zurn Elkay Water Solutions

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Does Zurn Elkay Water Solutions Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Zurn Elkay Water Solutions insiders own about US$177m worth of shares (which is 2.3% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Zurn Elkay Water Solutions Insiders?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. On the plus side, Zurn Elkay Water Solutions makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Zurn Elkay Water Solutions and we suggest you have a look.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.