Insider Trading February 13, 2026

Zurn Elkay Water Solutions President Sells $66,280 of Stock to Cover Tax Withholding

Transaction follows strong quarterly results, analyst Buy ratings and a multi-year dividend increase

By Derek Hwang ZWS
Zurn Elkay Water Solutions President Sells $66,280 of Stock to Cover Tax Withholding
ZWS

Jeffrey A. Schoon, president of Zurn Elkay Water Solutions Corp (ZWS), disposed of 1,286 shares on February 11, 2026, in a transaction valued at $66,280. The sale, executed to meet tax withholding and related fees tied to vested performance stock units and dividend shares, coincides with the company trading near its 52-week high and reporting quarterly results that exceeded analyst expectations.

Key Points

  • Zurn Elkay President Jeffrey A. Schoon sold 1,286 shares on Feb. 11, 2026 for $66,280 to satisfy tax withholding and related fees tied to vested performance stock units and dividend shares - impacts corporate governance transparency and insider activity monitoring.
  • Zurn Elkay reported quarterly revenue of $407.2 million and adjusted EBITDA of $104.1 million, both topping Stifel and Street estimates - relevant to the industrial and water solutions sectors.
  • Analysts remain constructive: Stifel reiterated a Buy rating with a $54.00 target, and Jefferies initiated coverage with a Buy and a $58.00 target, highlighting opportunities from filtered drinking water adoption and institutional construction demand.

Jeffrey A. Schoon, president of Zurn Elkay Water Solutions Corp, filed a Form 4 with the Securities and Exchange Commission reporting the sale of 1,286 shares of the companys common stock on February 11, 2026.

The transaction was executed at a weighted average price of $51.54 per share, with individual trades occurring between $51.36 and $52.36. The aggregate proceeds from the sale totaled $66,280. The disposition took place while ZWS was trading close to its 52-week high of $53.17 and follows a one-year price advance of approximately 46%.


According to the filing, the sale was conducted to satisfy tax withholding requirements and related fees arising from the vesting of performance stock units and associated dividend shares. Following the transaction, Schoon retains direct ownership of 61,255 shares. He also holds an indirect interest in 2,196 shares held in trust and 846 shares through a 401(k) Plan.

The company is trading at a price-to-earnings ratio of 43.8 and carries an overall financial health rating classified as "GREAT" by third-party research noted in available data.


Operationally, Zurn Elkay reported quarterly revenue of $407.2 million, surpassing both Stifel's estimate of $401.6 million and the Street consensus of $400.8 million. Adjusted EBITDA for the period was $104.1 million, ahead of Stifel and Street expectations of $101.0 million.

In conjunction with its financial results, the company declared a quarterly cash dividend of $0.11 per share, payable on March 6, 2026, to stockholders of record as of February 20, 2026. Management has raised the dividend for three consecutive years, with dividend growth of 22.2% over the last twelve months. The company is described as maintaining a moderate debt load alongside a strong liquidity profile.


Market analysts have responded affirmatively to the firms recent performance and outlook. Stifel reiterated a Buy rating and kept its price target at $54.00 following the results and 2026 guidance. Jefferies initiated coverage with a Buy rating and set a $58.00 price target, citing the companys positioning to benefit from growing adoption of filtered drinking water, resilient institutional construction demand, and robust free cash flow.

Investors will note that the sale was explicitly tied to vesting-related tax obligations rather than an open-market vote on the companies prospects. Schoon remains a significant shareholder after the transaction, holding sizeable direct and indirect positions.

Given the combination of recent operational outperformance, continued dividend increases, and analyst endorsements, the corporate and water solutions sectors remain focal points for market attention. The reported insider sale closes one chapter in the firms governance disclosures while leaving intact the broader signals from the latest earnings and guidance.

Risks

  • Dependence on resilient institutional construction demand - Jefferies flagged this area as a driver of growth, making it an uncertainty for the companys revenue and order environment if demand shifts. This affects construction and industrial sectors.
  • Dividend sustainability tied to cash flow and leverage - the company has increased its dividend for three consecutive years and reported strong liquidity, but continued dividend growth depends on ongoing free cash flow performance and debt management, impacting income-focused investors.
  • Insider transactions motivated by vesting-related tax obligations may still be interpreted by some market participants in the context of share liquidity and insider sentiment, affecting investor perception in the equity markets.

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