Disclosed on August 18, Susan Canning, SVP at Hayward Holdings (NYSE:HAYW), executed a substantial insider sell as per the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that Canning executed a sale of 3,500 shares of Hayward Holdings with a total value of $52,710.

The latest market snapshot at Wednesday morning reveals Hayward Holdings shares up by 3.39%, trading at $14.61.

Unveiling the Story Behind Hayward Holdings

Hayward Holdings is a leading manufacturer of energy-efficient swimming pool equipment and pool automation systems. The company offers a wide range of pool equipment, including pumps, filters, heaters, LED lights, and sanitization. Headquartered in Charlotte, North Carolina, the company has around 2,000 full-time employees. Hayward generated approximately $1.1 billion in revenue in 2025.

Financial Insights: Hayward Holdings

Revenue Growth: Over the 3 months period, Hayward Holdings showcased positive performance, achieving a revenue growth rate of 6.27% as of 30 June, 2026. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Profitability Metrics:

• Gross Margin: The company maintains a high gross margin of 48.7%, indicating strong cost management and profitability compared to its peers.
• Earnings per Share (EPS): Hayward Holdings's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.21.

Debt Management: Hayward Holdings's debt-to-equity ratio is below the industry average. With a ratio of 0.6, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 20.29 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 2.78 suggests overvaluation in the eyes of investors, considering sales performance.
• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 11.42, Hayward Holdings presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Understanding the Significance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

The Insider's Guide to Important Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Hayward Holdings's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.