Insider Trading February 19, 2026

Zurn Elkay Water Solutions VP Disposes $102,767 in Stock as Shares Near 52-Week High

Sale linked to RSU tax-withholding; company posts revenue and EBITDA beats while analysts maintain bullish ratings

By Derek Hwang ZWS
Zurn Elkay Water Solutions VP Disposes $102,767 in Stock as Shares Near 52-Week High
ZWS

Sudhanshu Chhabra, vice president of Zurn Business Systems at Zurn Elkay Water Solutions Corp (ZWS), sold 2,021 shares on February 17, 2026, to cover tax withholding tied to restricted stock unit vesting. The disposal amounted to $102,767 at prices between $50.63 and $51.22 as the stock trades close to a 52-week high. Separately, the company reported quarterly revenue and adjusted EBITDA above estimates, and its board declared a quarterly dividend.

Key Points

  • VP Sudhanshu Chhabra sold 2,021 shares on Feb. 17, 2026, totaling $102,767 at $50.63 to $51.22 per share - sale was to satisfy RSU tax-withholding obligations.
  • Zurn Elkay Water Solutions 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 price target while Jefferies initiated coverage with a Buy and $58 target.
  • The company declared a quarterly cash dividend of $0.11 per share, payable March 6, 2026, to holders of record on February 20, 2026 - developments relevant to the water products and construction-related markets.

Sudhanshu Chhabra, who serves as VP-Zurn Business Systems at Zurn Elkay Water Solutions Corp (NYSE: ZWS), completed multiple transactions on February 17, 2026, selling a total of 2,021 shares of common stock for aggregate proceeds of $102,767. Trade prices in the series ranged from $50.63 to $51.22 per share.

The stock has been trading near its 52-week peak of $53.17, having climbed roughly 45% over the past 12 months. An InvestingPro analysis cited in company data indicates the shares appear overvalued relative to their Fair Value and shows a price-to-earnings ratio of 45.31. An InvestingPro tip noted the company is trading at a high earnings multiple relative to near-term growth.

Following the sale, Chhabra retains direct ownership of 69,556 shares. In addition, he is reported to indirectly hold 22,753 shares through his spouse and 2,125 shares via a 401(k) Plan.

The filings state that the disposition was undertaken to cover tax withholding obligations and related fees arising from the vesting of restricted stock units (RSUs).


Company financials and analyst positioning

Recent quarterly results showed Zurn Elkay Water Solutions generating revenue of $407.2 million, above both Stifel’s estimate of $401.6 million and the broader Street consensus of $400.8 million. Adjusted EBITDA came in at $104.1 million, exceeding Stifel’s and the Street’s forecasts of $101.0 million.

In response to the reported results and the company’s 2026 guidance, Stifel reiterated its Buy rating on Zurn Elkay Water Solutions and kept a $54 price target. Separately, Jefferies initiated coverage with a Buy rating and a $58.00 price target, highlighting potential upside tied to increased adoption of filtered drinking water and ongoing resilient construction demand.

Dividend and shareholder record dates

The company’s Board of Directors declared a quarterly cash dividend of $0.11 per share, payable on March 6, 2026, to shareholders of record as of February 20, 2026.


These developments - the insider sale to meet RSU-related tax obligations, the quarterly outperformance, analyst endorsements, and the dividend declaration - underscore current investor attention on Zurn Elkay Water Solutions as the stock trades near recent highs. Reported ownership figures and the stated reason for the sale are set out in regulatory filings.

Risks

  • Valuation concern - InvestingPro analysis indicates the stock is trading above its Fair Value with a P/E of 45.31, reflecting a high earnings multiple relative to near-term growth; this valuation dynamic may affect investor sentiment in the water solutions sector.
  • Insider sale context - while the filing states the sale was to meet tax withholding from RSU vesting, insider dispositions coinciding with near-term highs can prompt increased market scrutiny and short-term volatility in the stock.
  • Earnings sensitivity - although recent revenue and adjusted EBITDA beat estimates, future performance tied to adoption of filtered drinking water and construction demand remains a factor for the company and the related equipment and building-materials segments.

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