Form 4: Zurn Elkay Water Solutions Officer Sells Shares Under Pre-Planned Trading Plan

Mark W. Peterson, Chief Administrative Officer of Zurn Elkay Water Solutions Corp, sold 22,138 shares of common stock for approximately $43.05 per share under a Rule 10b5-1 trading plan.

Summary

• Mark W. Peterson, Chief Administrative Officer of Zurn Elkay Water Solutions Corp (ZWS), sold 22,138 shares of common stock.
• The transaction occurred on July 31, 2025, at a weighted average sale price of $43.05 per share, with prices ranging from $42.42 to $43.32.
• This sale was executed pursuant to a pre-arranged Rule 10b5-1(c) trading plan.
• Following the transaction, Mr. Peterson directly holds 360,480 shares of common stock and indirectly holds 5,304 shares through a 401(k) Plan.
• Mr. Peterson also holds 33,481 vested stock options with an exercise price of $33.05, expiring on October 5, 2031.

Sentiment

Score: 5

Explanation: The sale of shares by a Chief Administrative Officer, even under a pre-planned Rule 10b5-1 trading plan, can be viewed with slight caution as it represents a reduction in insider ownership. However, the pre-planned nature mitigates concerns about opportunistic selling based on non-public information, and the officer retains significant holdings.

Positives

• The sale was conducted under a Rule 10b5-1(c) trading plan, indicating it was pre-scheduled and not based on immediate, non-public information.
• The Chief Administrative Officer retains a significant direct holding of 360,480 shares and 33,481 vested stock options, demonstrating continued alignment with shareholder interests.

Negatives

• An insider sale, even if pre-planned, can sometimes be perceived negatively by the market as it reduces the officer's direct equity stake in the company.

Future Outlook

NA

Industry Context

This is an insider transaction specific to Zurn Elkay Water Solutions Corp. It does not directly relate to broader industry trends, though general market sentiment towards insider sales can be influenced by industry conditions.

Related Party Transactions

• Mark W. Peterson, Chief Administrative Officer, sold 22,138 shares of Zurn Elkay Water Solutions Corp common stock, which is a direct related party transaction.

Stakeholder Impact

• Shareholders may interpret the insider sale as a signal, though the Rule 10b5-1 plan suggests it's not based on new information. The impact is likely minimal given the pre-planned nature and the officer's retained holdings.

Key Dates

Recommendation

The insider sale by the Chief Administrative Officer, while a reduction in direct ownership, was conducted under a pre-arranged Rule 10b5-1 plan, which suggests it is not based on new, adverse information. The officer retains substantial direct and indirect holdings, indicating continued alignment. Without additional financial or strategic information, this single transaction does not warrant a change from a 'hold' recommendation.

Keywords

Zurn Elkay Water Solutions, ZWS, Insider Trading, Form 4, Stock Sale, Officer Transaction, Mark W. Peterson, Rule 10b5-1, Common Stock