Why This Fund Sold $23 Million of Hayward Stock Despite Strong 12% Revenue Growth

On May 15, 2026, Cramer Rosenthal McGlynn disclosed in a Securities and Exchange Commission (SEC) filing that it sold 1,491,557 shares of Hayward Holdings (NYSE:HAYW) in the first quarter, an estimated $23.21 million transaction based on quarterly average pricing.

What happened

According to a SEC filing dated May 15, 2026, Cramer Rosenthal McGlynn reduced its position in Hayward Holdings by 1,491,557 shares during the first quarter. The estimated transaction value was $23.21 million, calculated from the average unadjusted closing price during the quarter. The quarter-end value of the position fell by $23.62 million, reflecting both the sale of shares and changes in share price.

What else to know

• Top holdings after the filing:
  • NYSE: BKU: $59.78 million (4.4% of AUM)
  • NYSE: SKY: $57.06 million (4.2% of AUM)
  • NYSE: RRX: $46.56 million (3.4% of AUM)
  • NASDAQ: HUBG: $41.47 million (3.0% of AUM)
  • NASDAQ: EVRG: $34.97 million (2.6% of AUM)
• As of May 14, 2026, Hayward Holdings shares were priced at $13.90, down about 5% over the past year and well underperforming the S&P 500, which is instead up about 25%.

Company overview

Metric	Value
Revenue (TTM)	$1.15 billion
Net income (TTM)	$160.60 million
Price (as of market close May 14, 2026)	$13.90

Company snapshot

• Hayward Holdings designs and manufactures pool equipment and automation systems, including pumps, filters, heaters, cleaners, lighting, and IoT-enabled controls
• The firm generates revenue through product sales to specialty distributors, retailers, and buying groups across North America, Europe, and international markets
• It targets residential and commercial pool owners, with a focus on both new pool installations and aftermarket equipment upgrades

Hayward Holdings is a leading global provider of pool equipment and automation solutions, serving a broad customer base in residential and commercial markets. The company leverages a diversified product portfolio and established distribution channels to drive consistent revenue streams.

What this transaction means for investors

By cutting Hayward last quarter, Cramer Rosenthal McGlynn appears to be trimming exposure to a slower-growth industrial name while keeping capital concentrated in areas with stronger momentum.

What makes the move interesting is that Hayward’s latest results were actually solid. First-quarter sales climbed 12% year over year to $255.2 million, while net income surged 63% to $23.4 million. Adjusted EBITDA, meanwhile, rose 15% to $56.4 million as the company benefited from pricing power, operational efficiencies, and continued demand for aftermarket pool equipment.

Management also raised full-year guidance and said roughly 85% of revenue comes from the aftermarket business, giving Hayward a stable recurring revenue profile. Still, shares have really struggled in recent months, and they fell nearly 14% last quarter alone. The business remains profitable and cash generative, but investors may want clearer signs of accelerating demand before betting on meaningful multiple expansion.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.