Zurn Water Solutions Corporation (NYSE: ZWS) stock jumped 0.89% on Friday to $28.34 against a previous-day closing price of $28.09. With 1.09 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.11 million shares. During the session, the Pollution & Treatment Controls company that operates in wider Industrials sector, reached to the highest price of $28.48 whereas the lowest price it dropped to was $27.67. The 52-week range on ZWS shows that it touched its highest point at $38.31 and its lowest point at $25.90 during that stretch. It currently has a 1-year price target of $34.33. With its current market cap of 4.93 billion, ZWS has annualized dividend of $0.28 while the current yield stands at 0.99%. Beta for the stock currently stands at 1.39.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ZWS was down-trending over the past week, with a drop of -0.04%, but this was up by 0.71% over a month. Three-month performance dropped to -6.68% while six-month performance fell -11.27%. The stock lost -1.91% in the past year, while it has lost -22.14% so far this year. A look at the trailing 12-month EPS for ZWS yields 0.67 with Next year EPS estimates of 1.31. For the next quarter, that number is 0.28. This implies an EPS growth rate of 39.90% for this year and 21.67% for next year. EPS is expected to grow by 14.80% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -13.10%.
Float and Shares Shorts:
At present, 126.42 million ZWS shares are outstanding with a float of 121.82 million shares on hand for trading. On Jul 14, 2022, short shares totaled 4.51 million, which was 2.54% higher than short shares on Jun 14, 2022. In addition to Mr. Todd A. Adams as the firm’s Pres, CEO & Chairman, Mr. Mark W. Peterson serves as its Sr. VP & CFO.
Through their ownership of 74.76% of ZWS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 64.67% of ZWS, in contrast to 37.46% held by mutual funds. Shares owned by individuals account for 24.39%. As the largest shareholder in ZWS with 8.65% of the stake, The Vanguard Group, Inc. holds 10,897,315 shares worth 10,897,315. A second-largest stockholder of ZWS, Impax Asset Management Ltd., holds 8,739,665 shares, controlling over 6.94% of the firm’s shares. Wellington Management Co. LLP is the third largest shareholder in ZWS, holding 7,386,496 shares or 5.86% stake. With a 3.44% stake in ZWS, the American Funds Small Cap World Fu is the largest stakeholder. A total of 4,328,500 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.81% of ZWS stock, is the second-largest Mutual Fund holder. It holds 3,540,090 shares valued at 96.43 million. Vanguard Explorer Fund holds 2.49% of the stake in ZWS, owning 3,140,046 shares worth 85.53 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, ZWS reported revenue of $284.20M and operating income of $53.80M. Over the past year, revenue came in at $985.80M while operating income stood at $143.10M. It generated $36.40M net income for the quarter, which came to $64.30M over the last twelve months. The EBITDA in the recently reported quarter was $57.20M and diluted EPS was $0.28. EBITDA for the full year was $187.80M.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ZWS since 6 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ZWS analysts setting a high price target of $36.00 and a low target of $32.00, the average target price over the next 12 months is $34.33. Based on these targets, ZWS could surge 27.03% to reach the target high and rise by 12.91% to reach the target low. Reaching the average price target will result in a growth of 21.14% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ZWS will report FY 2022 earnings on 01/31/2023. Analysts have provided yearly estimates in a range of $1.10 being high and $0.98 being low. For ZWS, this leads to a yearly average estimate of $1.03. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Zurn Water Solutions Corporation surprised analysts by $0.03 when it reported $0.32 EPS against a consensus estimate of $0.29. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is $0.28 and the low estimate is $0.23. The average estimate for the next quarter is thus $0.25.
Summary of Insider Activity:
Insiders traded ZWS stock several times over the past three months with 14 Buys and 6 Sells. In these transactions, 3,457,482 shares were bought while 29,899 shares were sold. The number of buy transactions has increased to 88 while that of sell transactions has risen to 42 over the past year. The total number of shares bought during that period was 8,666,810 while 3,931,242 shares were sold.