Form 4: Zurn Elkay CFO Sells Shares for Tax Obligations

Zurn Elkay Water Solutions Corp's Chief Financial Officer, David J. Pauli, sold 812 shares of common stock to cover tax withholding obligations related to restricted stock unit vesting.

Summary

• David J. Pauli, Chief Financial Officer of Zurn Elkay Water Solutions Corp (ZWS), sold 812 shares of common stock.
• The sale occurred on February 11, 2026, at a weighted average price of $51.61 per share, with individual trades ranging from $51.27 to $52.36.
• The purpose of the sale was to satisfy tax withholding obligations and related fees associated with the vesting of restricted stock units.
• Following the transaction, Mr. Pauli directly beneficially owns 65,995 shares of common stock.
• Additionally, Mr. Pauli indirectly beneficially owns 794 shares through a 401(k) Plan.
• Mr. Pauli also holds fully vested stock options to purchase 13,816 shares at an exercise price of $11.37 (expiring 05/19/2027), 5,757 shares at $14.22 (expiring 05/25/2028), and 6,136 shares at $33.05 (expiring 10/05/2031).

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event. The sale is a routine transaction for tax purposes, not indicative of a change in company fundamentals or management's confidence.

Positives

• The sale was for a routine tax withholding obligation, not a discretionary sale indicating a lack of confidence in the company.
• The Chief Financial Officer retains a significant direct and indirect beneficial ownership of Zurn Elkay Water Solutions Corp common stock (65,995 direct shares and 794 indirect shares).
• The Chief Financial Officer holds substantial fully vested stock options, aligning his interests with long-term shareholder value.

Negatives

• A reduction in direct beneficial ownership of 812 shares, even if for tax purposes.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that routine insider sales for tax withholding purposes are common and generally do not reflect a change in management's outlook on the company's prospects. Such transactions are a standard part of executive compensation and vesting schedules.

Stakeholder Impact

• Shareholders: Minimal impact as it is a small, routine sale for tax purposes by an executive who retains significant holdings.
• Employees: No direct impact.
• Customers: No direct impact.
• Suppliers: No direct impact.
• Creditors: No direct impact.

Key Dates

Recommendation

This Form 4 filing details a routine, non-discretionary sale of shares by the CFO to cover tax obligations from restricted stock unit vesting. It does not provide new information regarding the company's operational performance, financial health, or strategic direction that would warrant a change in investment thesis. The CFO retains substantial equity and options, indicating continued alignment with shareholder interests. Therefore, a 'hold' recommendation is appropriate as this event is neutral to the company's investment profile.

Keywords

Zurn Elkay Water Solutions, ZWS, David J. Pauli, CFO, Insider Trading, Form 4, Stock Sale, Tax Withholding, Restricted Stock Units, Executive Compensation