Form 4: Zurn Elkay VP LaValle Reports Insider Stock Transactions

Jeffrey J. LaValle, VP, General Counsel & Secretary of Zurn Elkay Water Solutions Corp, reported the vesting of performance stock units, a restricted stock unit grant, and a sale of shares to cover tax obligations.

Summary

• Jeffrey J. LaValle, VP, General Counsel & Secretary, reported multiple transactions in Zurn Elkay Water Solutions Corp (ZWS) common stock.
• On February 6, 2026, LaValle acquired 18,407 shares of common stock for no consideration due to the vesting of performance stock units (PSUs) and accrued dividend equivalent rights. These PSUs were based on the company's performance from January 1, 2023, to December 31, 2025.
• Following this acquisition, LaValle directly owned 55,900 shares.
• On February 10, 2026, LaValle sold 6,097 shares of common stock at a weighted average price of $51.80 per share to satisfy tax withholding obligations and related fees associated with the PSU vesting.
• After this sale, LaValle's direct beneficial ownership decreased to 49,803 shares.
• Also on February 10, 2026, LaValle received a restricted stock unit (RSU) grant of 2,334 shares, which will vest in three annual installments starting one year from the grant date, contingent on continued employment.
• Following the RSU grant, LaValle's direct beneficial ownership increased to 52,814 shares, which also includes shares acquired under the Company's Employee Stock Purchase Plan in 2025.
• LaValle also holds 1,813 shares indirectly through a 401(k) Plan and 5,578 fully vested stock options with an exercise price of $33.05, expiring on October 5, 2031.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this filing as moderately positive, reflecting the achievement of performance targets leading to PSU vesting and the ongoing use of equity compensation to retain a key executive. The tax-related sale is a routine event.

Positives

• Vesting of 18,407 performance stock units indicates Zurn Elkay Water Solutions Corp met performance targets for the January 1, 2023 December 31, 2025 period.
• Grant of 2,334 restricted stock units demonstrates ongoing compensation and retention incentives for a key executive.
• The executive holds 5,578 fully vested stock options with an exercise price of $33.05, significantly below the reported sale price of $51.80, indicating potential value.

Negatives

• Sale of 6,097 shares to cover tax obligations, while common, reduces the executive's direct equity stake in the company.

Future Outlook

The restricted stock unit grant vests in three annual installments beginning on the first anniversary of the grant date, assuming continued employment, indicating a future retention strategy.

Industry Context

StockSavvy.ai notes that Form 4 filings provide transparency into insider transactions, which are routine disclosures for executives receiving equity compensation. The vesting of performance stock units suggests the company met its internal performance metrics over the specified period, while the sale to cover taxes is a common practice for executives receiving equity awards.

Stakeholder Impact

• Shareholders: Provides transparency into executive stock ownership and compensation practices. The vesting of performance units could be seen as a positive signal regarding company performance.
• Employees: The RSU grant and PSU vesting reflect standard equity compensation practices, which can be a positive for employee morale and retention strategies.

Next Steps

• The restricted stock units will vest in three annual installments, with the first installment occurring on the first anniversary of the grant date (February 10, 2027), assuming continued employment.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation events, including the vesting of performance stock units, a restricted stock unit grant, and a sale to cover tax obligations. While the vesting of PSUs indicates the company met prior performance targets, these transactions do not provide new fundamental information about the company's future prospects or financial health that would warrant a change in investment recommendation. The sale to cover taxes is a common and expected event, not a signal of lack of confidence. Therefore, a 'hold' recommendation is appropriate, maintaining current positions based on broader company fundamentals rather than these specific insider transactions.

Keywords

Zurn Elkay Water Solutions Corp, ZWS, Jeffrey J. LaValle, Form 4, Insider Trading, Stock Options, Restricted Stock Units, Performance Stock Units, Equity Compensation, Executive Compensation, Share Ownership, SEC Filing