Michael Troutman, Chief Information Officer at Zurn Elkay Water Solutions Corp (NYSE: ZWS), disposed of 448 shares of common stock on February 17, 2026, according to a Form 4 filing with the Securities and Exchange Commission. The sale, carried out in multiple transactions, carried a weighted average price of $50.80 per share and generated proceeds of $22,758.
Trade prices in the series ranged from $50.63 to $50.96. Company paperwork indicates the disposition was executed to satisfy tax withholding obligations and related fees that arose in connection with the vesting of restricted stock units.
Following the sale, Troutman directly holds 61,327 shares of Zurn Elkay common stock. He additionally has an indirect holding of 1,890 shares through a 401(k) plan.
On the market, Zurn Elkay has delivered a strong one-year return of 45%. At the time of the filing the shares were trading at $50.91 and the company carried a market capitalization reported at $8.5 billion. A valuation metric cited in company analysis places the stock at a price-to-earnings ratio of 45.3, a level described as indicating the shares may be overvalued at current prices.
Separately, Zurn Elkay reported quarterly results that beat expectations. Revenue for the quarter was $407.2 million, above Stifel's estimate of $401.6 million and the broader Street consensus of $400.8 million. Adjusted EBITDA came in at $104.1 million, topping both Stifel's and the Street's forecasts of $101.0 million.
After the results were released, Stifel maintained a Buy rating on the stock and held its price target at $54.00. Jefferies began coverage with a Buy rating and set a $58.00 price target, calling out potential upside tied to wider adoption of filtered drinking water and solid institutional construction demand.
The company also 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.
Taken together, the insider sale, the quarter's financial outperformance and the reaffirmed and new analyst interest reflect active investor and management dynamics at Zurn Elkay. The insider transaction was explicitly linked to RSU vesting-related tax and fee obligations rather than an open-market vote on valuation, while the company's results and guidance from sell-side firms underscore the links between operational performance and market positioning in the water solutions and institutional construction sectors.
Summary
Michael Troutman sold 448 shares on February 17, 2026 to cover tax and fee liabilities related to vested restricted stock units. The sale totaled $22,758 at a weighted average price of $50.80 per share. Zurn Elkay reported revenue of $407.2 million and adjusted EBITDA of $104.1 million, both ahead of analyst projections. Stifel reiterated its Buy rating with a $54.00 target and Jefferies initiated coverage with a Buy rating and a $58.00 target. The company declared a $0.11 quarterly dividend payable March 6, 2026.
Key points
- Insider activity: CIO Michael Troutman sold 448 shares on February 17, 2026 to meet RSU-related tax withholding and fee obligations; sale proceeds were $22,758.
- Financial performance: Zurn Elkay posted revenue of $407.2 million and adjusted EBITDA of $104.1 million, both exceeding Stifel and Street estimates.
- Analyst coverage and capital return: Stifel reiterated a Buy rating with a $54.00 target, Jefferies initiated coverage with a Buy and $58.00 target, and a $0.11 quarterly dividend was declared for shareholders of record on February 20, 2026.
Risks and uncertainties
- Valuation risk: An analysis cited a price-to-earnings ratio of 45.3, indicating the stock may be trading at stretched valuation levels, which could affect investor returns in the market sector.
- Demand concentration: Jefferies highlighted the company's exposure to demand drivers such as adoption of filtered drinking water and institutional construction projects; shifts in these end markets could influence revenue and margin trajectories.
- Insider sales tied to RSU vesting: Periodic insider sales to satisfy tax withholding and similar obligations can result in incremental selling pressure on the stock during vesting events.