Cramer Rosenthal McGlynn has significantly reduced its stake in Hayward Holdings (HAYW), selling 1,491,557 shares in Q1 2026, valued at approximately $23.21 million. This move, disclosed in an SEC filing, reflects a decline in the value of their position by $23.62 million due to both the sale and a decrease in share price, with Hayward’s stock down about 5% over the past year.
Despite a strong first quarter where Hayward reported a 12% increase in sales and a 63% rise in net income, the company has struggled with stock performance, falling nearly 14% last quarter alone. The firm’s focus on aftermarket equipment, which comprises 85% of its revenue, provides a stable cash flow, yet investors may be cautious given the broader market’s 25% gain and the need for clearer signs of demand acceleration.
For market professionals, this divestiture signals a potential shift in investment strategy, prioritizing sectors with stronger growth prospects over slower industrial names like Hayward.
Source: fool.com