Zurn Elkay CFO Buys 15,778 Shares on a No‑Cash Deal, Then Sells 7,639 to Cover Taxes—Insider Confidence in the Water‑Solutions Stock Soars to 52‑Week High

Insider Activity Spotlight: CFO Pauli David J’s Recent Moves

Pauli David J, the Chief Financial Officer of Zurn Elkay Water Solutions Corp., added 15,778 shares on February 6, 2026, at no cash consideration under a performance‑stock‑unit plan. The shares were granted in lieu of dividend‑equivalent rights that vied with the company’s 2023‑2025 performance window. Three days later, he sold 7,639 shares for an average of $51.80 to cover tax withholding and related fees. These transactions are typical of a compensation‑linked vesting schedule, but their timing—just after a sharp 9.9% weekly rise and a 12% monthly gain—raises questions about the CFO’s confidence in the stock’s short‑term trajectory.

What Investors Should Note

The CFO’s buy and subsequent sell are executed under the same performance‑stock‑unit (PSU) framework that rewards management when the company hits specific operating milestones. By buying the shares at no cost, Pauli essentially aligns his personal exposure with the company’s future success, reinforcing management’s long‑term commitment. The quick sale to meet tax obligations is routine and unlikely to signal a lack of faith; instead, it reflects the cash‑flow mechanics of PSU vesting. For investors, the key takeaway is that the CFO is maintaining a significant long‑term position—74,446 shares after the sale—while also participating in the company’s incentive plan, which suggests confidence in the business’s upcoming earnings cycle.

Broader Insider Trends at Zurn Elkay

In the past week, the company’s top executives have been active: Chairman Todd Adams purchased 569,734 shares on February 6, and Chief Administrative Officer Mark Peterson added 73,628 shares on the same day. The cumulative insider buying, totaling over 1.6 million shares, signals strong internal conviction, especially as the stock sits near a 52‑week high of $53.15. The combined volume of insider trades has outpaced the 10‑day average by roughly 4%, indicating that senior management is not merely buying for liquidity but to demonstrate belief in the company’s growth trajectory.

Pauli David J: A Consistent “Buy‑and‑Hold” Profile

Reviewing Pauli’s historical filings shows a pattern of periodic sales followed by large holdings. He sold 1,090 shares in July 2025 at $37.79, but retained 794 shares and held options totaling more than 20,000 shares across three vesting dates. This mix of selling to fund expenses and retaining sizable positions reflects a disciplined approach: he divests when necessary but keeps a substantial stake to benefit from upside. The CFO’s current post‑trade balance of 74,446 shares represents a 62% increase from his July 2025 position, underscoring a growing commitment as the company’s earnings strengthen.

Implications for the Future

Zurn Elkay’s industrial‑machinery focus and recent earnings momentum—highlighted in the Q4 2025 call—position the firm for continued revenue expansion, especially in infrastructure and aerospace sectors. Management’s active buying, coupled with Pauli’s sizeable long‑term holding, should reassure investors that the leadership team is aligned with shareholder interests. The stock’s current trading near its 52‑week peak, combined with a high P/E of 47.12, suggests valuation premiums that are justified by steady growth prospects. For investors, the insider activity signals confidence and should be viewed as a positive endorsement of ZWS’s trajectory, provided that earnings continue to meet or exceed the benchmarks embedded in the CFO’s PSU plan.