Hayward Holdings, Inc. (NYSE:HAYW) President and CEO Kevin Holleran has recently sold company shares, according to the latest filings. Holleran sold a total of 42,857 shares at prices ranging from $12.08 to $12.18, with a weighted average price of $12.1259 per share, amounting to a total of approximately $519,679.
The transactions occurred on July 2nd, as indicated by the SEC filing. This sale comes alongside Holleran's acquisition of the same number of shares through the exercise of stock options priced at $1.40 per share, totaling nearly $60,000. It's important to note that these stock options are vested as to 90% of the initial underlying shares, with the remaining 10% set to vest on August 12, 2024.
Following these transactions, Holleran's direct ownership in Hayward Holdings stands at 522,799 shares. Additionally, indirect holdings through family members were reported, with each of Holleran's three children owning 700 shares of the company's common stock.
Investors and followers of Hayward Holdings will likely keep a close watch on the trading activities of its top executives, as these can provide insights into their confidence in the company's future prospects. The sale of shares by a CEO often garners attention, as it represents a significant change in an insider's stake in the company.
Hayward Holdings, based in Charlotte, North Carolina, specializes in refrigeration and service industry machinery and is known for its technological contributions to the sector. The company's business address is listed at 1415 Vantage Park Drive, Suite 400, Charlotte, NC 28203.
In other recent news, Hayward Holdings has reported a slight increase in their Q1 2024 earnings, with net sales growing 1% year-over-year to $213 million, and an expansion of its gross profit margins to 49.2% and adjusted EBITDA margin to 21.2%. Despite market challenges, Hayward is maintaining its full-year guidance, forecasting net sales to increase by 2% to 7% and adjusted EBITDA to climb by 3% to 11% for the year. In a significant development, Hayward has acquired ChlorKing, a leader in commercial pool saline chlorinators and UV disinfection systems in the U.S., expanding its commercial product range and reinforcing its commitment to sustainable water treatment solutions. The acquisition is expected to bolster Hayward's innovative portfolio, as ChlorKing's technologies, with over 17,000 installations worldwide, are set to reach a wider audience. In addition to these developments, Hayward has launched two new robotic cleaners and made a significant early debt repayment, aiming to reduce its net debt to adjusted EBITDA ratio to 2-3 times within the year. These are the recent developments for Hayward Holdings.
InvestingPro Insights
As Hayward Holdings' President and CEO Kevin Holleran adjusts his stake in the company, investors are taking note of the company's financial health and market performance. According to InvestingPro data, Hayward Holdings has a market capitalization of $2.63 billion and is trading at a high earnings multiple with a P/E ratio of 31.82. This valuation is slightly tempered when looking at the adjusted P/E ratio for the last twelve months as of Q1 2024, which stands at 28.72.
Despite a recent dip in revenue growth, with a -10.68% change over the last twelve months as of Q1 2024, the company boasts an impressive gross profit margin of 48.61% for the same period. This indicates that while Hayward Holdings may be facing challenges in expanding its top-line revenue, it is still maintaining a strong hold on its profitability on a per-unit basis.
InvestingPro Tips highlight that while the stock has seen a decline over the last month with a -15.15% total return, analysts predict the company will be profitable this year. Moreover, the company's liquid assets exceed its short-term obligations, suggesting financial resilience. However, it's worth noting that four analysts have revised their earnings downwards for the upcoming period, which could be a point of concern for potential investors.
For those interested in a deeper analysis, InvestingPro offers 9 additional tips on Hayward Holdings, which can be accessed at Investing.com's Hayward Holdings Pro page. To gain access to these valuable insights and more, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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