Form 4: Zurn Elkay CFO Pauli Reports Stock Transactions

Zurn Elkay Water Solutions CFO David J. Pauli reported the acquisition of shares from vested performance units and subsequent sale of shares for tax obligations.

Summary

• Chief Financial Officer David J. Pauli acquired 15,778 shares of Zurn Elkay Water Solutions Corp common stock on February 6, 2026, upon the vesting of performance stock units.
• These shares were received for no consideration and included shares for accrued dividend equivalent rights, based on the company's performance from January 1, 2023, to December 31, 2025.
• Pauli subsequently sold 7,639 shares of common stock on February 10, 2026, at a weighted average price of $51.8 per share.
• The sale was conducted to satisfy tax withholding obligations and related fees associated with the vesting of the performance stock units and related dividend shares.
• Following these transactions, Pauli directly owns 66,807 shares of common stock and indirectly owns 794 shares through a 401(k) Plan.
• Pauli also holds fully vested stock options to buy 13,816 shares at an exercise price of $11.37, 5,757 shares at $14.22, and 6,136 shares at $33.05.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive event, primarily due to the vesting of performance stock units, indicating the company met its performance targets. The subsequent sale for tax purposes is a routine, neutral event.

Positives

• The vesting of performance stock units suggests Zurn Elkay Water Solutions Corporation met performance targets over the three-year period from January 1, 2023, to December 31, 2025.
• The acquisition of shares for no consideration upon vesting increases the CFO's direct equity stake in the company before the tax-related sale.

Negatives

• The sale of 7,639 shares, even for tax purposes, reduces the CFO's direct beneficial ownership of common stock.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that routine insider transactions, such as sales to cover tax obligations upon equity award vesting, are common and generally do not signal significant shifts in broader industry trends or competitive positioning.

Stakeholder Impact

• Shareholders: The CFO's direct ownership slightly decreased due to the tax-related sale, but the initial vesting of performance units reflects positive company performance.
• Employees: The vesting of performance stock units for a key executive may signal a healthy incentive program tied to company performance.

Key Dates

Recommendation

This Form 4 filing details a routine insider transaction involving the vesting of performance stock units and a subsequent sale to cover tax obligations. While the vesting indicates the company met performance targets, the transaction itself does not provide new fundamental information to warrant a change in investment thesis. Therefore, a "hold" recommendation is appropriate as it reflects a neutral impact on the stock's intrinsic value based solely on this filing.

Keywords

Zurn Elkay Water Solutions, ZWS, Form 4, Insider Trading, Stock Transaction, Performance Stock Units, CFO, David J. Pauli, Equity, Stock Options