Mueller Water Products Board Member Sold $221K In Company Stock

A substantial insider sell was reported on February 27, by SHIRLEY FRANKLIN, Board Member at Mueller Water Products MWA, based on the recent SEC filing.

What Happened: FRANKLIN’s recent Form 4 filing with the U.S. Securities and Exchange Commission on Thursday unveiled the sale of 8,825 shares of Mueller Water Products. The total transaction value is $221,556.

Tracking the Thursday’s morning session, Mueller Water Products shares are trading at $25.5, showing a up of 0.2%.

About Mueller Water Products

Mueller Water Products Inc is a U.S.-based company that manufactures and sells products and services used in the transmission, distribution, and measurement of water. The company operates in two segments Water Flow Solutions and Water Management Solutions. The Water Flow Solutions segment, which derives maximum revenue for the company, includes products like iron gate valves, specialty valves, and service brass products. Water Management Solutions’ portfolio includes fire hydrants, repair and installation, natural gas, metering, leak detection, and pressure management and control products and solutions. Geographically, the company derives a majority of its revenue from the United States and the rest from Canada and other international locations.

Key Indicators: Mueller Water Products’s Financial Health

Positive Revenue Trend: Examining Mueller Water Products’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 18.68% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Exploring Profitability:

• Gross Margin: The company faces challenges with a low gross margin of 33.85%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Mueller Water Products exhibits below-average bottom-line performance with a current EPS of 0.23.

Debt Management: Mueller Water Products’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.57, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: The P/E ratio of 29.25 is lower than the industry average, implying a discounted valuation for Mueller Water Products’s stock.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 2.93 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Mueller Water Products’s EV/EBITDA ratio at 15.07 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

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Delving Into the Significance of Insider Transactions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

From a legal standpoint, the term “insider” pertains to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider’s new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Breaking Down the Significance of Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Mueller Water Products’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.