In a recent transaction, Kevin Holleran, the President and CEO of Hayward Holdings, Inc. (NYSE:HAYW), sold 42,857 shares of the company's common stock. This sale, reported on September 3, 2024, amounted to a total value of $612,520, with the shares being sold at prices ranging from $14.10 to $14.75.
The disclosed average selling price was $14.2922 per share, according to the filing. The specific breakdown of the sales prices was not provided in the report, but Holleran has committed to offering full details of the number of shares sold at each price upon request. This sale has adjusted Holleran's direct holdings in Hayward Holdings to 522,799 shares following the transaction.
On the same day, Holleran also engaged in a transaction involving the exercise of stock options, acquiring 42,857 shares of common stock at $1.40 each, totaling $59,999. These options, which are now fully vested, were exercised ahead of their expiration date on December 24, 2029. After the exercise, Holleran's direct ownership in the company's derivative securities stood at 3,338,571 shares.
Hayward Holdings, Inc., headquartered in Charlotte, North Carolina, operates in the refrigeration and service industry machinery sector. The company's stock is publicly traded, and these transactions are part of the regular reporting that executives and directors are required to make regarding their ownership stakes in publicly-traded companies.
In other recent news, Hayward Holdings Inc reported a slight year-over-year increase in net sales in its second-quarter results. The company also marked its sixth consecutive quarter of gross margin expansion, hitting a record 51%. Operational cash flow saw a 26% rise compared to the first half of the previous year, and net leverage was significantly reduced. Hayward's recent acquisition of ChlorKing is anticipated to strengthen its standing in the commercial pool market.
Financial services firm Stifel has adjusted its outlook on Hayward, raising its price target on the company's shares to $15.50 from the previous $15.00 and maintaining a Hold rating. This revision is based on a 13 times enterprise value to forecasted fiscal year 2026 earnings before interest, taxes, depreciation, and amortization (EV/FY26E EBITDA) multiple.
For the full year 2024, Hayward projects a net sales growth of 2% to 5% and an adjusted EBITDA increase of 3% to 9%. The company's net sales for the fiscal year 2024 are expected to range between $1.01 billion and $1.04 billion, with adjusted EBITDA projected to be between $255 million and $270 million. These recent developments reflect the company's ongoing financial health and strategic growth initiatives.
InvestingPro Insights
Following the recent insider transactions by Hayward Holdings, Inc. (NYSE:HAYW) President and CEO Kevin Holleran, investors may find additional context in the company's financial metrics and market performance provided by InvestingPro. With a market capitalization of $3.07 billion, Hayward Holdings stands out with an impressive gross profit margin of 49.43% over the last twelve months as of Q2 2024. This high margin underscores the company's efficiency in managing its production costs relative to its sales.
However, it's worth noting that Hayward Holdings is trading at a high earnings multiple, with a P/E ratio of 33.87, which is adjusted to 31.06 when considering the last twelve months as of Q2 2024. This high P/E ratio suggests that the stock may be priced at a premium relative to near-term earnings growth, as indicated by a PEG ratio of 1.94. Additionally, analysts predict the company will be profitable this year, which aligns with the company's profitability over the last twelve months.
InvestingPro Tips also highlight that Hayward Holdings does not pay a dividend to shareholders, which could be an important consideration for income-focused investors. For those interested in delving deeper into Hayward Holdings' financial health and future prospects, InvestingPro offers additional tips and insights. There are currently six more InvestingPro Tips available for HAYW at InvestingPro, which could further inform investment decisions.
InvestingPro Data also reveals that the company's stock has experienced a 1-week price total return of -3.54%, yet it has managed a year-to-date price total return of 4.26%. With the next earnings date approaching on October 29, 2024, investors will be watching closely to see if the company's performance aligns with market expectations and the insights provided by InvestingPro.
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