Exploring Hayward Holdings, Inc. (HAYW) Investor Profile: Who’s Buying and Why?

You've seen the pool and outdoor living sector cool off, so when a company like Hayward Holdings, Inc. posts a strong quarter and raises its full-year outlook, you have to ask who is buying and why they're stepping in now. The institutional investor profile is defintely top-heavy, with giants like BlackRock, Inc. and The Vanguard Group, Inc. holding massive stakes-BlackRock, Inc. alone reported owning over 23.1 million shares as of September 30, 2025, which is a clear conviction signal. The reason for this buying interest is rooted in the company's Q3 2025 performance, which saw Net Sales jump 7% year-over-year to $244.3 million and Adjusted Diluted EPS hit $0.14, a strong beat against the $0.12 consensus. That's a powerful narrative. Management then raised its full-year Net Sales guidance to a range of $1.095 billion to $1.110 billion, signaling confidence in the resilient aftermarket business-the replacement parts and services that keep existing pools running-which insulates them from the volatile new pool construction market. We need to look closer at whether the aftermarket strength and margin expansion (Q3 Gross Profit Margin hit 51.2%) can truly offset the risk of recent insider selling, where executives offloaded over $14.2 million in shares over the last year.

Who Invests in Hayward Holdings, Inc. (HAYW) and Why?

If you're looking at Hayward Holdings, Inc. (HAYW), you're looking at a company overwhelmingly owned by professional money managers, not the average person. The clear takeaway is that institutional investors-the big funds-dominate the shareholder base, drawn by the company's resilient aftermarket business model and its strong financial discipline in 2025.

This isn't a stock driven by retail chatter; it's a core holding for major investment firms. The institutional ownership of Hayward Holdings, Inc. is significant, with major players holding the vast majority of shares. For instance, top holders as of late 2025 include giants like BlackRock, Inc. and The Vanguard Group, Inc., which are often passive investors holding the stock as part of broad index funds and ETFs. Insider ownership, by contrast, is a smaller slice, sitting around 5.06%, which is a healthy alignment but confirms the institutional control.

Here's the quick math on who owns the pool equipment leader:

• Institutional Investors (Mutual Funds, Banks, etc.): Over 90% of shares outstanding.
• Insiders (Executives and Directors): Approximately 5.06%.
• Retail/Individual Investors: The remaining balance, which is relatively small.

Investment Motivations: The Aftermarket Resilience Thesis

The primary attraction to Hayward Holdings, Inc. for these large institutions boils down to its defensive business model and the strong financial performance seen in 2025. Honestly, this company is a high-quality play on the existing pool infrastructure, not just new construction.

The core of the investment thesis is the aftermarket. Over 80% of Hayward Holdings, Inc.'s sales are tied to the repair, replacement, remodeling, and upgrading of equipment for existing pools, which is far more resilient than new pool construction during economic slowdowns. Plus, the company has shown impressive margin control.

The 2025 financial results underscore this strength:

• Margin Expansion: Gross profit margin increased by 150 basis points to 51.2% in Q3 2025, demonstrating pricing power and operational efficiency.
• Growth and Guidance: Management raised its full-year 2025 guidance, now expecting Net Sales between $1.095 billion and $1.110 billion and Adjusted EBITDA between $292 million and $297 million.
• Balance Sheet Strength: Robust cash flow generation has allowed the company to reduce its net leverage to 1.8x, the lowest level in over three years, giving them financial flexibility.

Investors also see the long-term secular trends-outdoor living, Sunbelt migration, and the push for technology adoption in pool automation-as sustainable growth drivers. The company's focus on innovative, energy-efficient products like the OmniX platform is what keeps the revenue stream fresh and high-margin. If you want to dive deeper into the company's foundation, you can check out Hayward Holdings, Inc. (HAYW): History, Ownership, Mission, How It Works & Makes Money.

Investment Strategies: Growth at a Premium

Given the profile of the investors and the company's valuation, the dominant strategies are a blend of long-term growth and quality-focused value investing (buying a high-quality business, even at a premium). This is not a classic deep-value stock; the market is paying a premium for its durability.

The stock trades at a premium Price-to-Earnings (P/E) ratio compared to the broader US Building industry average, which tells you investors are willing to pay up for the company's consistent earnings quality and long-term expansion prospects. This is the growth-at-a-reasonable-price (GARP) approach in action. You're buying a stable compounder.

Here's how the strategies break down:

To be fair, there is some short-term trading, but the overwhelming presence of index and mutual funds suggests a long-term capital commitment. You see some insider selling, like the CFO offloading 25,000 shares in October 2025, but that's often routine for liquidity and compensation, not a change in the fundamental business outlook. The long-term view is what matters here.

Institutional Ownership and Major Shareholders of Hayward Holdings, Inc. (HAYW)

You need to know who is really holding the bag at Hayward Holdings, Inc. (HAYW) because institutional money drives the stock's stability and future strategy. The quick takeaway is that institutional investors own a massive chunk of the company-over 100% of the shares outstanding-which means their sentiment is the primary factor in the stock's near-term price action, but this also flags a high short interest you need to watch closely.

As of late 2025, institutional ownership is reported at an extraordinary 103.98% of the float, representing a total holding value of approximately $3,470 million. This figure, exceeding 100%, is a direct signal of significant short selling activity, where shares are borrowed and sold, contributing to the total institutional ownership percentage. This high level of institutional control means the company's direction is largely dictated by a few major players, not retail investors.

Here's the quick math: with about 217 million total shares outstanding, every major move is a direct result of these large funds buying or selling. You can learn more about the company's foundation and business model on our dedicated page: Hayward Holdings, Inc. (HAYW): History, Ownership, Mission, How It Works & Makes Money.

Top Institutional Investors and Their Stakes

The investor base for Hayward Holdings, Inc. is dominated by some of the largest asset managers in the world. The presence of passive index funds like The Vanguard Group, Inc. and BlackRock, Inc. provides a foundational, stable ownership base, while active managers like JP Morgan Asset Management signal a belief in the company's growth story. These top funds are not just buying; they are making a long-term commitment to the pool and outdoor living technology sector.

The table below shows the largest reported holdings from the most recent 2025 filings, giving you a clear picture of who is placing the biggest bets.

Recent Shifts: Institutional Buying vs. Insider Selling

The most recent 2025 13F filings show a mixed, but generally positive, signal from institutional investors, which is a key indicator for a stock's momentum. You saw several funds increasing their positions in the first half of the year, suggesting a belief that the stock is undervalued or that the company's turnaround strategy is defintely working.

For example, Leith Wheeler Investment Counsel Ltd. raised its stake by a substantial 33.1% in the second quarter of 2025, adding 154,555 shares. Also, the Teacher Retirement System of Texas nearly doubled its position, increasing its stake by 99.1% in Q1 2025. This aggressive buying shows a clear appetite for Hayward Holdings, Inc. shares among certain institutional groups.

• Leith Wheeler Investment Counsel Ltd. increased holdings to 621,931 shares, valued at $8,583,000.
• Envestnet Asset Management Inc. lifted its position by 50.2%, now holding 71,174 shares.
• Los Angeles Capital Management LLC, however, lessened its stake by 4.0% in Q2 2025, selling 16,481 shares.

Still, you must be aware of the counter-signal: insider selling. Over the 90 days leading up to November 2025, insiders, including the CFO and CEO, offloaded a total of 166,142 shares, worth about $2.70 million. This is a classic divergence-institutions are buying based on future earnings potential, but company executives are taking chips off the table.

The Role of Large Investors in Strategy and Stock Price

Institutional investors don't just hold shares; they exert pressure that shapes the company's strategic direction and its stock price volatility. Their influence is currently focused on two critical areas: corporate governance and the long-term product roadmap.

The institutional focus on governance is intense right now. In October 2025, a prominent law firm announced an investigation into potential breaches of fiduciary duties by certain officers, stemming from allegations of a 'channel-stuffing' scheme and failure to disclose inventory backlogs from 2021-2022. This kind of scrutiny from the shareholder base forces the board to prioritize transparency and accountability, which is crucial for long-term value creation and mitigating the risk of massive liability from the ongoing federal securities lawsuit.

On the product side, the large funds are buying into Hayward Holdings, Inc.'s commitment to energy-efficient and sustainable pool equipment, such as its IoT-enabled SmartPad™ automation system. This focus aligns perfectly with the Environmental, Social, and Governance (ESG) mandates of major asset managers like BlackRock, Inc. and The Vanguard Group, Inc., effectively making the company's sustainability strategy a core part of the institutional investment thesis. This strategic alignment is a major tailwind for the stock's valuation. The market is rewarding the company for its Q2 2025 earnings beat, where it reported $0.14 EPS against a $0.12 estimate, but the governance issues are a near-term risk that could cap the upside.

Key Investors and Their Impact on Hayward Holdings, Inc. (HAYW)

If you're looking at Hayward Holdings, Inc. (HAYW), the immediate takeaway is that the smart money-the massive institutional funds-is definitely buying into the pool industry's long-term stability and the company's recent operational strength. This isn't a story about a few high-profile individuals; it's about the quiet, powerful confidence of the world's largest asset managers who are now the dominant owners.

The institutional ownership structure at Hayward Holdings, Inc. (HAYW) is top-heavy, meaning a few colossal players hold the keys. This concentration is important because it means their investment thesis-essentially, why they own the stock-drives the stock's stability and can influence major strategic decisions, even if they aren't 'activist' in the traditional sense. Their sheer size gives them influence.

The Institutional Giants: Who's Buying and Why

The investor profile is dominated by passive and active funds that see Hayward Holdings, Inc. (HAYW) as a solid play on the durable, technology-driven pool aftermarket. The company's recent strong performance in fiscal year 2025 is the concrete proof these funds are looking for. For the third quarter of 2025 alone, the company reported Net Sales of $244.3 million and Net Income of $24.0 million, beating analyst expectations and prompting a raise in full-year guidance.

The two most notable investors, BlackRock, Inc. and The Vanguard Group, Inc., represent a significant chunk of the company's market capitalization, which was around $3.50 billion as of November 2025. They buy because Hayward Holdings, Inc. (HAYW) is a market leader in a niche that benefits from long-term trends like sunbelt migration and the replacement cycle of installed pool equipment. That's a defintely compelling narrative.

• BlackRock, Inc. holds the largest stake, sitting at 10.59% with 22,976,015 shares as of September 29, 2025.
• The Vanguard Group, Inc. is a close second, holding 9.11% of the shares, totaling 19,753,533 shares as of June 29, 2025.

Their influence is subtle but constant. These funds generally favor stability, predictable cash flow, and management teams focused on long-term value over short-term volatility. When you see a company like Hayward Holdings, Inc. (HAYW) reducing its net leverage to 1.8x-the lowest in over three years-that's the kind of disciplined financial execution that keeps these giants happy.

Recent Investor Moves and the Insider Counterpoint

We saw some notable buying activity recently that underscores this confidence. The Vanguard Group, Inc. executed a strategic move on December 31, 2024, acquiring an additional 3,589,352 shares. This was a clear signal that, despite any short-term market noise, they were committed to increasing their exposure to the stock. Also, smaller funds like Leith Wheeler Investment Counsel Ltd. raised their stake by 33.1% in the second quarter of 2025.

Here's the quick math on the company's financial momentum that fueled this buying, based on the updated fiscal year 2025 guidance:

What this estimate hides, though, is a key counter-trend: insider selling. Over the 90 days leading up to November 12, 2025, company insiders, including the CEO and CFO, offloaded a total of 166,142 shares, valued at approximately $2.70 million. While insiders still own a respectable 5.06% of the stock, this selling activity is something to watch. It doesn't necessarily signal a lack of faith, but it often suggests personal portfolio diversification or tax planning, which is a common occurrence. Still, it's a data point that needs to be factored against the institutional optimism.

The institutional investors are betting on the company's ability to maintain its high gross profit margin-which expanded by 150 basis points to 51.2% in Q3 2025-by using positive net pricing to offset inflation and tariffs. Their investment validates the strategy of focusing on the high-margin aftermarket for pool technology, which you can read more about in Hayward Holdings, Inc. (HAYW): History, Ownership, Mission, How It Works & Makes Money.

Your action here is clear: align your strategy with the long-term institutional view, recognizing that the steady hand of BlackRock, Inc. and The Vanguard Group, Inc. provides a strong floor for the stock, but keep an eye on insider activity as a potential short-term headwind.

Market Impact and Investor Sentiment

You're looking at Hayward Holdings, Inc. (HAYW) and trying to figure out if the big money is still in, and honestly, the picture is nuanced. The short answer is that institutional conviction is high, but insider selling is a real headwind you can't ignore. Institutional ownership sits at an unusually high 103.98% of the float, suggesting significant demand from major funds, which is defintely a bullish signal.

The sentiment from these major shareholders is overwhelmingly positive, especially following the company's strong performance. For example, Principal Financial Group Inc. increased its stake by 2.4% in the first quarter of 2025, showing continued belief in the long-term story. The two largest institutional investors-BlackRock, Inc. and The Vanguard Group, Inc.-hold commanding positions, with BlackRock owning 10.59% (or 22,976,015 shares as of September 29, 2025) and Vanguard holding 9.11% (or 19,753,533 shares as of June 29, 2025). That's a lot of skin in the game.

But here's the catch: while institutions are buying, company insiders have been selling. Over the last year, insiders have sold approximately $19.4 million in high-impact open-market transactions, which drives a strongly negative insider sentiment score. This is a classic divergence, and it makes you ask: why are the people who know the business best heading for the exit? It's a risk that needs to be factored into your valuation model.

• BlackRock, Inc. holds 10.59% of shares.
• Insider selling totaled around $19.4 million in the last year.
• Institutional ownership is over 103% of the float.

Recent Market Reactions to Ownership Shifts

The market has reacted strongly to Hayward Holdings, Inc.'s operational performance, mostly shrugging off the insider sales for now. When the company reported its third quarter 2025 results, beating expectations and raising its full-year guidance, the stock surged. The stock hit a new 12-month high of $17.60 after the Q3 earnings beat in late October 2025. That's a clear sign that the market prioritizes the company's earnings power over the executive divestitures.

The stock's 1-month return was nearly 10% as of early November 2025, driven by the raised outlook. This momentum shows that the narrative of accelerating adoption of connected pool equipment, like the OmniX platform, is resonating with investors. The current price of $15.55 (as of November 21, 2025) is still trading below the recent high, suggesting a potential entry point if you believe the growth story holds.

Analyst Perspectives and Key Growth Drivers

Analyst consensus is generally optimistic, though not universally so. The average 12-month price target is a range of $17.50 to $18.00. This implies an upside of roughly 16% from the mid-November 2025 price of $15.53. The consensus rating is split between a 'Buy' and 'Hold,' with a few firms like Zacks Research upgrading the stock to a 'strong-buy' in October 2025.

The core of the bullish argument rests on two factors. First, the resilient aftermarket business: pool equipment eventually needs replacing or repair, and that demand is non-discretionary. Second, the push into higher-margin digital and automated products. Hayward Holdings, Inc. is guiding for a strong fiscal year 2025, with projected revenue of approximately $1.12 billion and Earnings Per Share (EPS) of about $0.77. Here's the quick math: the Q3 2025 EPS of $0.14 beat the consensus by $0.02, showing they are executing well.

What this estimate hides is the potential impact of a sustained housing market slowdown, which could eventually hurt new pool construction, although the aftermarket segment is currently offsetting this. To understand the foundation of this growth, you should review the Mission Statement, Vision, & Core Values of Hayward Holdings, Inc. (HAYW).