In a notable surge, Hayward Holdings Inc. (HAYW) stock has reached a 52-week high, touching $16.27. This peak reflects a significant uptrend for the company, which has seen its stock value increase by 28.7% over the past year. Investors have shown increased confidence in Hayward Holdings, a global designer, manufacturer, and marketer of a broad portfolio of pool equipment and associated automation systems, as the company continues to expand its market presence and capitalize on the growing demand for residential and commercial pool products. The 52-week high milestone underscores the positive sentiment surrounding the company's performance and future prospects.
In other recent news, KeyBanc has raised the price target for Pentair (NYSE:PNR) from $97.00 to $110.00, maintaining an Overweight rating, indicating a positive outlook for the company. This adjustment follows consistent demand for pool equipment, and KeyBanc anticipates a positive 2025 for the pool equipment sector. In parallel, Hayward Holdings saw a major shift in its shareholder structure, with MSD Aqua Partners distributing its entire stake in the company to its partners and members.
Stifel, another financial services firm, raised its price target on Hayward Holdings' shares to $15.50, maintaining a Hold rating. This adjustment is based on a 13 times enterprise value to forecasted fiscal year 2026 earnings before interest, taxes, depreciation, and amortization (EV/FY26E EBITDA) multiple. Furthermore, Hayward Holdings reported a modest year-over-year increase in net sales in its second-quarter results and six consecutive quarters of gross margin expansion, reaching a record 51%.
Lastly, Hayward has acquired ChlorKing, aiming to bolster its presence in the commercial pool market, and for the full year 2024, the company anticipates a net sales growth of 2% to 5% and an adjusted EBITDA increase of 3% to 9%. All these recent developments highlight the dynamic and evolving landscape of these companies.
InvestingPro Insights
Hayward Holdings Inc.'s (HAYW) recent 52-week high of $16.27 aligns with InvestingPro data showing the stock trading near its 52-week high, with a price at 92.27% of this peak. This performance is reflected in the impressive 29.94% one-year price total return.
InvestingPro Tips highlight Hayward's impressive gross profit margins, which is supported by the data showing a gross profit margin of 49.43% for the last twelve months as of Q2 2024. This strong profitability metric suggests efficient operations and pricing power in the pool equipment market.
However, investors should note that HAYW is trading at a high earnings multiple, with a P/E ratio of 35.49. This valuation could indicate market expectations for continued growth, but it also presents potential risks if the company fails to meet these high expectations.
For a more comprehensive analysis, InvestingPro offers 8 additional tips that could provide valuable insights into Hayward Holdings' financial health and market position. These additional tips could be particularly useful for investors looking to make informed decisions in the context of HAYW's recent stock performance and market valuation.
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