Insider Trading February 10, 2026

Zurn Elkay CFO Disposes $395,700 in Shares Amid Recent Vesting and Strong Quarterly Results

David J. Pauli reduces direct stake after sale while recent PSU vesting and analyst upgrades follow better-than-expected quarter

By Maya Rios ZWS
Zurn Elkay CFO Disposes $395,700 in Shares Amid Recent Vesting and Strong Quarterly Results
ZWS

Zurn Elkay Water Solutions Corp's Chief Financial Officer David J. Pauli sold 7,639 shares on February 10, 2026, generating roughly $395,700. The sale follows a separate February 6, 2026, vesting of performance stock units that added 15,778 shares to his holdings. The company reported quarterly revenue and adjusted EBITDA above consensus, prompting continued and new Buy ratings from Stifel and Jefferies, and a quarterly cash dividend was declared.

Key Points

  • Zurn Elkay CFO David J. Pauli sold 7,639 shares on February 10, 2026, for approximately $395,700, reducing his direct holdings to 66,807 shares.
  • On February 6, 2026, Pauli received 15,778 shares at no cost upon the vesting of performance stock units tied to company performance from January 1, 2023 to December 31, 2025; this brought his direct ownership to 74,446 shares.
  • Zurn Elkay reported revenue of $407.2 million and adjusted EBITDA of $104.1 million, both above Stifel and Street estimates; Stifel reiterated a Buy rating with a $54.00 target and Jefferies initiated coverage with a Buy and $58.00 target. The company also declared a $0.11 quarterly cash dividend payable March 6, 2026.

David J. Pauli, Chief Financial Officer of Zurn Elkay Water Solutions Corp (NYSE: ZWS), executed a transaction on February 10, 2026, selling 7,639 shares of the company's common stock at prices between $51.48 and $52.16. According to a Form 4 filed with the Securities and Exchange Commission, the sale produced net proceeds of approximately $395,700 and lowered Pauli's direct ownership stake to 66,807 shares.

Earlier in the same week, on February 6, 2026, Pauli received 15,778 shares at no cost when performance stock units vested. Those vested PSUs included shares issued for accrued dividend equivalent rights and were tied to Zurn Elkay's performance for the period from January 1, 2023 through December 31, 2025. After the vesting event, Pauli's direct holdings rose to 74,446 shares.

The filing also shows Pauli’s broader exposure to company equity: he indirectly owns 794 shares through a 401(k) plan, and he holds stock options covering three tranches of common stock. The option positions are for 13,816 shares exercisable at $11.37 per share, 5,757 shares at $14.22 per share, and 6,136 shares at $33.05 per share.


These insider transactions coincide with Zurn Elkay reporting quarterly results that exceeded analyst expectations. The company posted revenue of $407.2 million, topping Stifel’s estimate of $401.6 million and the Street consensus of $400.8 million. Adjusted EBITDA came in at $104.1 million, above the $101.0 million forecast cited by both Stifel and the consensus.

Following the results and the company's 2026 guidance, Stifel reiterated its Buy rating for Zurn Elkay Water Solutions and maintained a $54.00 price target. Separately, Jefferies initiated coverage with a Buy rating and a $58.00 price target. In its initiation, Jefferies pointed to the company's positioning to benefit from rising adoption of filtered drinking water and highlighted strong free cash flow as a driver for potential upside via capital deployment. The firm also noted resilient institutional construction demand as a constructive factor for the business.

In addition to the operational and analyst activity, Zurn Elkay declared a quarterly cash dividend of $0.11 per share. The dividend is payable on March 6, 2026, to shareholders of record as of February 20, 2026.


Information in the Form 4 provides a clear record of Pauli's recent buy, vesting, and sell activity, and the company's quarterly performance has drawn affirmative coverage from at least two brokerages. The combination of insider transactions, executive equity incentives vesting, analyst ratings, and a declared cash dividend frames the latest developments at Zurn Elkay for investors monitoring executive activity and company fundamentals.

Risks

  • Insider sales can be interpreted in multiple ways and do not alone indicate company performance direction - this affects investor sentiment in the equity markets.
  • Future stock option exercises and vesting schedules could alter insider ownership levels, which may influence perceptions of executive alignment with shareholders - relevant to corporate governance assessments in the market.
  • Analyst ratings and price targets may change and are not guarantees of future performance; reliance on current coverage could present uncertainty for investment decisions in the industrial and water solutions sectors.

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