Zurn Elkay Water Solutions Cor (NYSE:ZWS) Shares Gap Down – Should You Sell?

Shares of Zurn Elkay Water Solutions Cor (NYSE:ZWS) gapped down prior to trading on Wednesday. The stock had previously closed at $49.15, but opened at $46.16. Zurn Elkay Water Solutions Cor shares last traded at $45.0120, with a volume of 77,729 shares traded.

Key Zurn Elkay Water Solutions Cor News

Here are the key news stories impacting Zurn Elkay Water Solutions Cor this week:

• Positive Sentiment: Third-quarter adjusted earnings were $0.52 per share, exceeding the $0.50 analyst consensus and rising from $0.43 a year earlier. Revenue increased 8.7% year over year to $495.1 million, slightly above estimates. Zurn Water Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Zurn Elkay raised its dividend by 18%, reinforcing the income appeal of the shares and signaling management confidence in cash generation and future growth. Zurn Elkay Q3 2026 Dividend and Growth
• Positive Sentiment: Sell-side brokerages collectively now rate ZWS “Moderate Buy,” providing a supportive backdrop for the stock despite some target-price caution. Zurn Elkay Receives Moderate Buy Rating
• Neutral Sentiment: Management provided a fourth-quarter sales outlook and discussed continued growth opportunities on the earnings call, but investors are weighing the outlook against the company’s current valuation. Zurn Elkay Q3 2026 Earnings Call Transcript
• Negative Sentiment: Royal Bank of Canada lowered its price target from $54 to $49 and maintained a “Sector Perform” rating. Although the new target implies potential upside, the cut signals more limited near-term expectations. Royal Bank of Canada Lowers ZWS Price Target
• Negative Sentiment: Some investors reacted cautiously because quarterly sales were viewed as merely in line with expectations, limiting the impact of the earnings beat and contributing to volatility around the results. Zurn Elkay Q3 Sales and Stock Reaction

Wall Street Analyst Weigh In

Several research firms recently commented on ZWS. Oppenheimer restated an “outperform” rating and set a $58.00 target price (down from $60.00) on shares of Zurn Elkay Water Solutions Cor in a research report on Thursday. Stifel Nicolaus raised their price target on Zurn Elkay Water Solutions Cor from $56.00 to $62.00 and gave the company a “buy” rating in a report on Thursday, July 30th. Royal Bank Of Canada dropped their price target on Zurn Elkay Water Solutions Cor from $54.00 to $49.00 and set a “sector perform” rating for the company in a research report on Thursday. Mizuho set a $48.00 price target on Zurn Elkay Water Solutions Cor in a research report on Thursday. Finally, The Goldman Sachs Group reissued a “neutral” rating and set a $55.00 price objective on shares of Zurn Elkay Water Solutions Cor in a report on Wednesday, July 29th. Five investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Zurn Elkay Water Solutions Cor has an average rating of “Moderate Buy” and an average target price of $54.67.

Zurn Elkay Water Solutions Cor Stock Up 2.7%

The company has a quick ratio of 2.13, a current ratio of 2.85 and a debt-to-equity ratio of 0.29. The stock has a 50-day simple moving average of $47.18 and a two-hundred day simple moving average of $48.27. The firm has a market cap of $7.37 billion, a PE ratio of 24.30, a P/E/G ratio of 1.58 and a beta of 1.07.

Zurn Elkay Water Solutions Cor (NYSE:ZWS) last posted its quarterly earnings data on Tuesday, October 27th. The company reported $0.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.50 by $0.02. The firm had revenue of $495.10 million during the quarter, compared to analysts’ expectations of $493.36 million. Zurn Elkay Water Solutions Cor had a return on equity of 18.46% and a net margin of 15.91%. The company’s revenue for the quarter was up 8.7% compared to the same quarter last year. During the same period in the prior year, the business earned $0.43 EPS. Analysts expect that Zurn Elkay Water Solutions Cor will post 1.83 earnings per share for the current year.

Zurn Elkay Water Solutions Cor Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, December 7th. Investors of record on Friday, November 20th will be given a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date is Friday, November 20th. This is a positive change from Zurn Elkay Water Solutions Cor’s previous quarterly dividend of $0.11. Zurn Elkay Water Solutions Cor’s dividend payout ratio is presently 27.16%.

Insider Transactions at Zurn Elkay Water Solutions Cor

In other news, Director Jacques Butler bought 2,016 shares of the business’s stock in a transaction on Wednesday, August 19th. The stock was acquired at an average price of $49.60 per share, with a total value of $99,993.60. Following the completion of the purchase, the director directly owned 37,487 shares in the company, valued at $1,859,355.20. This represents a 5.68% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 2.40% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Zurn Elkay Water Solutions Cor

Hedge funds have recently made changes to their positions in the business. Kilter Group LLC bought a new position in shares of Zurn Elkay Water Solutions Cor during the 2nd quarter valued at $25,000. Northwestern Mutual Wealth Management Co. bought a new stake in Zurn Elkay Water Solutions Cor in the second quarter worth $27,000. Root Financial Partners LLC bought a new stake in Zurn Elkay Water Solutions Cor in the third quarter worth $26,000. Assetmark Inc. lifted its stake in Zurn Elkay Water Solutions Cor by 53.0% in the first quarter. Assetmark Inc. now owns 843 shares of the company’s stock worth $38,000 after purchasing an additional 292 shares during the last quarter. Finally, Public Employees Retirement System of Ohio purchased a new stake in Zurn Elkay Water Solutions Cor during the second quarter valued at about $49,000. 83.33% of the stock is currently owned by institutional investors.

About Zurn Elkay Water Solutions Cor

Zurn Elkay Water Solutions Corporation (NYSE: ZWS) is a manufacturer of products and systems used to manage, conserve and protect water in commercial, institutional, industrial and residential buildings. The company provides plumbing and water-management solutions designed to support water distribution, drainage, safety, hygiene and efficiency.

Its product portfolio includes commercial faucets, flush valves, fixtures, drains, plumbing specialties, backflow-prevention devices, water coolers, bottle-filling stations, water filtration systems and related accessories.