Form 4: Zurn Elkay CAO Mark Peterson Reports Stock Transactions

Zurn Elkay Water Solutions' Chief Administrative Officer, Mark W. Peterson, reported recent acquisitions and sales of common stock, including vesting of performance units and a new restricted stock unit grant.

Summary

• Mark W. Peterson, Chief Administrative Officer of Zurn Elkay Water Solutions Corp (ZWS), reported several transactions involving the company's common stock.
• On February 6, 2026, Peterson acquired 73,628 shares of common stock for no consideration, resulting from the vesting of performance stock units tied to the company's performance from January 1, 2023, to December 31, 2025.
• On February 10, 2026, Peterson sold 35,267 shares of common stock at a weighted average price of $51.80 per share to satisfy tax withholding obligations related to the PSU vesting.
• Also on February 10, 2026, Peterson received a grant of 5,874 restricted stock units, which will vest in three annual installments beginning on the first anniversary of the grant date, assuming continued employment.
• Following these transactions, Peterson directly beneficially owns 339,613 shares of common stock and indirectly owns 5,303 shares through a 401(k) Plan.
• Peterson also holds 33,481 fully vested stock options with an exercise price of $33.05, expiring on October 5, 2031.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive signal, as the executive continues to build equity through grants, despite a necessary tax-related sale.

Positives

• Acquisition of 73,628 shares of common stock through the vesting of performance stock units, indicating achievement of performance targets for the period January 1, 2023, to December 31, 2025.
• Grant of 5,874 restricted stock units, aligning management's interests with long-term shareholder value through future vesting.
• Continued significant direct beneficial ownership of 339,613 common shares and 33,481 fully vested stock options, demonstrating ongoing executive stake in the company.

Negatives

• Sale of 35,267 shares of common stock, reducing direct beneficial ownership, although this was explicitly stated to satisfy tax withholding obligations.

Future Outlook

The 5,874 restricted stock units granted on February 10, 2026, are scheduled to vest in three annual installments, beginning on the first anniversary of the grant date, contingent on continued employment.

Industry Context

StockSavvy.ai notes that Form 4 filings provide transparency into insider trading activities, which can sometimes signal management's confidence or lack thereof in the company's future prospects. In this instance, the transactions primarily reflect routine compensation events (vesting of performance awards and new grants) and tax-related sales, rather than discretionary open-market purchases or significant divestitures that might suggest a change in sentiment.

Stakeholder Impact

• Shareholders: Provides transparency on executive compensation and changes in insider ownership, which can influence investor perception of management alignment.
• Employees: The vesting of performance stock units and grant of restricted stock units are part of executive compensation, potentially impacting morale and retention strategies for key personnel.

Next Steps

• Annual vesting installments for the 5,874 restricted stock units, beginning on the first anniversary of the grant date.

Key Dates

Recommendation

The filing details routine insider transactions, including the vesting of performance-based awards and a new restricted stock unit grant, alongside a sale to cover tax obligations. While the executive is increasing their equity stake through grants, these are standard compensation events and do not provide new fundamental information to significantly alter an investment thesis. Therefore, a 'hold' recommendation is appropriate as the filing does not present a compelling reason for a change in investment strategy.

Keywords

Zurn Elkay, ZWS, Mark Peterson, insider trading, stock transactions, Form 4, beneficial ownership, performance stock units, restricted stock units, stock options, executive compensation