Form 4: Zurn Elkay CAO Sells Shares for Tax Obligations

Zurn Elkay Water Solutions Corp's Chief Administrative Officer, Mark W. Peterson, sold 2,006 shares of common stock to cover tax withholding obligations.

Summary

• Mark W. Peterson, Chief Administrative Officer of Zurn Elkay Water Solutions Corp (ZWS), sold 2,006 shares of common stock.
• The transaction occurred on February 17, 2026, at a weighted average price of $50.86 per share, with trades ranging from $50.65 to $51.22.
• The sale was executed to satisfy tax withholding obligations and related fees associated with the vesting of restricted stock units.
• Following the transaction, Peterson directly owns 333,814 shares and indirectly owns 5,303 shares through a 401(k) Plan.
• The transaction was made pursuant to a Rule 10b5-1(c) plan, indicating a pre-arranged sale.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event, as the sale was non-discretionary and solely for tax purposes related to executive compensation, not reflecting a change in management's outlook on the company.

Positives

• The sale was non-discretionary, specifically for tax withholding, rather than a discretionary sale based on market outlook.
• The transaction was executed under a Rule 10b5-1(c) plan, suggesting a pre-planned and orderly disposition of shares.

Negatives

• A reduction in direct beneficial ownership by a key executive, although for tax purposes.

Future Outlook

No forward-looking statements or guidance were provided in this filing.

Industry Context

StockSavvy.ai notes that sales of shares by executives to cover tax obligations upon the vesting of restricted stock units are a common and routine occurrence across all industries, not indicative of specific industry trends.

Comparison to Industry Standards

• Sales for tax withholding are standard practice for executive compensation plans involving restricted stock units across publicly traded companies globally, such as those seen at General Electric or Microsoft when executives' equity awards vest. This transaction aligns with typical executive compensation management.

Stakeholder Impact

• Minimal direct impact on shareholders as the sale is a routine tax-related transaction and not a discretionary divestment.
• No direct impact on employees, customers, suppliers, or creditors.

Key Dates

Recommendation

The transaction is a routine, non-discretionary sale by an executive to cover tax obligations upon the vesting of restricted stock units. It does not signal any change in the company's fundamentals or management's confidence, thus a 'hold' recommendation is appropriate based solely on this filing.

Keywords

Zurn Elkay Water Solutions, ZWS, Insider Trading, Form 4, Stock Sale, Executive Compensation, Tax Withholding, Mark W. Peterson, Chief Administrative Officer, Restricted Stock Units