Why This Fund Sold $23 Million of Hayward Stock Despite Strong 12% Revenue Growth
Key Points
Cramer Rosenthal McGlynn sold 1,491,557 shares of Hayward Holdings in the first quarter.
The quarter-end position value decreased by $23.62 million, reflecting both trading and stock price movements.
The change represents 1.7% of fund’s 13F assets under management (AUM).
The post-trade holding stood at 276,362 shares valued at $3.70 million.
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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.
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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.
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