Hayward (NYSE:HAYW) Shares Gap Down - Should You Sell?

Key Points

• Hayward shares gapped down at the open, falling from a previous close of $15.88 to about $14.94, with the stock last trading near $14.89.
• Analyst sentiment remains cautious: the company has a consensus Hold rating and an average price target of $17.50, though Bank of America still rates it a Buy and trimmed its target to $18.
• Hayward’s latest earnings beat expectations, with EPS of $0.13 versus $0.11 expected and revenue of $255.2 million, but insiders have recently sold shares, including a large sale by CEO Kevin Holleran.

Hayward Holdings, Inc. (NYSE:HAYW - Get Free Report) shares gapped down before the market opened on Wednesday . The stock had previously closed at $15.88, but opened at $14.94. Hayward shares last traded at $14.8940, with a volume of 813,893 shares.

Analyst Upgrades and Downgrades

HAYW has been the topic of a number of research analyst reports. Bank of America cut their price target on shares of Hayward from $19.00 to $18.00 and set a "buy" rating on the stock in a research report on Monday, April 20th. Weiss Ratings upgraded Hayward from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, June 30th. Jefferies Financial Group reaffirmed a "hold" rating and set a $15.00 target price (down from $16.00) on shares of Hayward in a research note on Tuesday, March 31st. Cantor Fitzgerald reissued a "neutral" rating on shares of Hayward in a research note on Monday, July 6th. Finally, Zacks Research cut Hayward from a "strong-buy" rating to a "hold" rating in a report on Monday, April 27th. Two research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $17.50.

Hayward Stock Performance

The company has a debt-to-equity ratio of 0.58, a current ratio of 3.26 and a quick ratio of 2.47. The company has a fifty day moving average price of $14.89 and a 200 day moving average price of $15.20. The stock has a market cap of $3.20 billion, a P/E ratio of 20.24, a P/E/G ratio of 1.64 and a beta of 1.07.

Hayward (NYSE:HAYW - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The company reported $0.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.02. The business had revenue of $255.22 million during the quarter, compared to the consensus estimate of $239.13 million. Hayward had a net margin of 13.98% and a return on equity of 11.45%. Hayward's revenue was up 11.5% compared to the same quarter last year. During the same quarter last year, the firm posted $0.10 EPS. Hayward has set its FY 2026 guidance at 0.840-0.870 EPS. On average, equities analysts expect that Hayward Holdings, Inc. will post 0.85 EPS for the current year.

Insider Buying and Selling at Hayward

In other news, SVP Susan M. Canning acquired 2,242 shares of Hayward stock in a transaction on Thursday, April 30th. The stock was acquired at an average cost of $12.76 per share, with a total value of $28,607.92. Following the transaction, the senior vice president owned 103,837 shares of the company's stock, valued at approximately $1,324,960.12. This trade represents a 2.21% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Kevin Holleran sold 120,000 shares of the stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $17.28, for a total transaction of $2,073,600.00. Following the completion of the sale, the chief executive officer owned 701,234 shares of the company's stock, valued at approximately $12,117,323.52. This trade represents a 14.61% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 222,389 shares of company stock valued at $3,649,544 in the last quarter. 4.73% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Hayward

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Hennion & Walsh Asset Management Inc. purchased a new stake in shares of Hayward during the second quarter valued at approximately $295,000. GAMMA Investing LLC boosted its holdings in shares of Hayward by 33.6% in the 2nd quarter. GAMMA Investing LLC now owns 4,760 shares of the company's stock worth $82,000 after buying an additional 1,198 shares during the last quarter. Empowered Funds LLC bought a new position in Hayward during the first quarter valued at about $286,000. Bull Harbor Capital LLC purchased a new stake in Hayward during the first quarter worth about $260,000. Finally, California State Teachers Retirement System raised its position in Hayward by 23.4% in the first quarter. California State Teachers Retirement System now owns 247,777 shares of the company's stock worth $3,315,000 after acquiring an additional 47,028 shares during the period.

Hayward Company Profile

Hayward Holdings, Inc is a leading manufacturer and marketer of residential and commercial swimming pool equipment and related outdoor living products. The company designs, engineers and produces a comprehensive range of products that address water circulation, filtration, heating, sanitation, automation, lighting and cleaning needs for pools and spas. Hayward's offerings include pumps, filters, heaters, salt and chemical sanitization systems, automation controls, lights, robotic cleaners and various accessories that serve both new pool construction and aftermarket renovation markets.

Hayward's product portfolio is organized into several core categories.

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