Possible Bearish Signals With Zurn Elkay Water Solutions Insiders Disposing Stock

The fact that multiple Zurn Elkay Water Solutions Corporation (NYSE:ZWS) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Zurn Elkay Water Solutions

Zurn Elkay Water Solutions Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CEO & Chairman, Todd Adams, for US$13m worth of shares, at about US$33.06 per share. So we know that an insider sold shares at around the present share price of US$31.53. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

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. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Zurn Elkay Water Solutions Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Zurn Elkay Water Solutions shares. In total, insiders sold US$20m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Zurn Elkay Water Solutions Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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 3.3% of the company, currently worth about US$181m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Zurn Elkay Water Solutions Tell Us?

Insiders sold Zurn Elkay Water Solutions shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Zurn Elkay Water Solutions makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 1 warning sign for Zurn Elkay Water Solutions you should be aware of.

Of course Zurn Elkay Water Solutions may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.