Exploring Latham Group, Inc. (SWIM) Investor Profile: Who’s Buying and Why?

You've seen Latham Group, Inc. (SWIM) stock surge over 109% in the past year to a November 2025 price of around $6.83 per share, but the real question is who's driving that momentum and why they're buying a pool company in a still-soft housing market.

The story isn't about retail traders; it's about serious institutional conviction, with firms like Pamplona Capital Management holding a massive 44.84% stake and giants like BlackRock, Inc. and The Vanguard Group, Inc. collectively owning over 5.4 million shares as of their latest filings. Are they simply chasing the $18.1 million in net income Latham reported for the first nine months of 2025, or is there a deeper, defintely more strategic play here?

Honestly, it's the latter: these investors are betting on Latham's dominance in the higher-margin fiberglass segment, which makes up about 75% of their in-ground pool sales, plus the company's ability to narrow its full-year 2025 Adjusted EBITDA guidance to a strong range of $92 million to $98 million despite market headwinds. Do you understand the specific operational levers they're pulling to justify that $839.1 million market capitalization?

Who Invests in Latham Group, Inc. (SWIM) and Why?

If you're looking at Latham Group, Inc. (SWIM), the first thing you need to understand is that the investment profile is dominated by professional money. The stock is not a retail playground; it's an institutional conviction play, with a clear focus on a multi-year profit turnaround.

As of late 2025, institutional investors own a staggering 83.95% of the shares outstanding, which is a massive concentration and signals strong professional confidence in the long-term thesis. This leaves a relatively small float of 38.8 million shares for the general public and short-term traders. Insider ownership, which is management and directors, sits at a healthy 7.33%, showing their interests are defintely aligned with shareholders. That's a powerful signal.

The total institutional holdings amount to over 123.4 million shares across 310 owners. These aren't just small funds; major players like BlackRock, Inc. are among the largest institutional holders, with a position valued at approximately $8.10 million. Other heavy hitters include Vanguard Group Inc, Citadel Advisors Llc, and Voss Capital, LLC.

The Motivation: Growth, Market Dominance, and Turnaround

Investors are buying Latham Group, Inc. for three primary reasons: its dominant market position, aggressive growth targets, and a compelling margin expansion story. This isn't a dividend stock-the forward dividend rate is currently zero-so the focus is purely on capital appreciation.

The core attraction is Latham Group, Inc.'s leadership in the fiberglass pool segment, which is the faster-growing part of the market. Fiberglass pools are projected to account for about 75% of the company's in-ground pool sales for the 2025 fiscal year. This market position is the moat (a sustainable competitive advantage) that investors are banking on.

Growth expectations are concrete. Management reaffirmed its full-year 2025 guidance, projecting net sales growth of 8% and adjusted EBITDA growth of 19% at the midpoints. Here's the quick math: analysts are forecasting earnings to grow at an incredible 46.36% per year. The long-term vision is even bigger, with management targeting approximately $750 million in revenue and $160 million in adjusted EBITDA.

• Buy for market leadership in fiberglass pools.
• Bet on aggressive 19% adjusted EBITDA growth in 2025.
• Invest in the margin expansion story.

Investment Strategies: Value, Growth, and Activism

The strategies employed by the diverse investor base reflect the stock's current position as a turnaround story with significant long-term potential. You see a mix of classic growth and value investing principles at play.

Value and Turnaround Investing: A key strategy for many institutional buyers is the profit turnaround. Latham Group, Inc. is currently unprofitable, but analysts project its profit margin will swing from -2.5% to a positive 5.1% within three years, driven by manufacturing efficiencies and a shift to higher-margin products. Some value investors see the stock as undervalued, trading at approximately $6.95 per share in November 2025, which is below the estimated fair value of $10.06 per share.

Long-Term Growth Holding: Many of the largest institutional holders, like Vanguard Group Inc and BlackRock, Inc., are passive index or long-term growth funds. They are essentially holding for the multi-year thesis of market share gains and the realization of the $750 million revenue goal. This is a patience game.

Hedge Fund Accumulation: Hedge funds have been net buyers, increasing their holdings by 131.1K shares in the last reported quarter. This accumulation suggests a tactical, shorter-term conviction that the stock's operational improvements will be recognized by the market, driving the price toward the consensus target. One notable example is Clifford Sosin of CAS Investment Partners, who bought 1,000,000 shares.

To fully grasp the foundation of this investment thesis, you should review the company's operational history and core business model, which you can find here: Latham Group, Inc. (SWIM): History, Ownership, Mission, How It Works & Makes Money.

Institutional Ownership and Major Shareholders of Latham Group, Inc. (SWIM)

You're looking at Latham Group, Inc. (SWIM) and wondering who the big money is, and more importantly, what they are doing. The direct takeaway is that Latham Group, Inc. is defintely a Private Equity (PE) backed play, with a very high level of institutional control-over 83.95% of the stock is held by professional investors, which signals a strong, albeit concentrated, market trust.

The investor profile is split between large, active Private Equity firms and the passive index giants, creating a dynamic tension between strategic control and market validation. The stock price as of November 7, 2025, was $6.83 per share, reflecting an 18.78% increase over the prior year, a period where institutional accumulation has been notable.

The Dominant Institutional Players and Their Stakes

The ownership structure of Latham Group, Inc. is dominated by its Private Equity roots, which means a few large players hold a disproportionate amount of power. Pamplona Capital Management LLC is the anchor investor, holding a controlling interest that dictates the long-term strategic direction of the company.

Here's the quick math: Pamplona Capital Management LLC alone holds approximately 44.44% of the shares outstanding, totaling 51,845,685 shares as of the most recent filings in 2025.

The rest of the top institutional holders are a mix of other PE/VC (Venture Capital/Private Equity) firms and the world's largest asset managers, who are often passive investors (meaning they buy to track an index). You have to pay attention to who is active and who is passive.

• Pamplona Capital Management LLC: 44.44% ownership, 51,845,685 shares.
• Voss Capital, LP: 5.40% ownership, 6,299,042 shares.
• BlackRock, Inc.: Approximately 3.11 million shares.
• The Vanguard Group, Inc.: Recently increased to 3,257,228 shares.

Recent Shifts: PE Exits vs. Index Buying

The near-term ownership changes in 2025 show a classic post-IPO (Initial Public Offering) pattern: Private Equity firms are reducing their positions, while passive index funds are accumulating. This is a crucial distinction for your investment thesis.

For example, Wynnchurch Capital Partners IV, L.P., a long-time partner, executed a significant reduction in its stake in May 2025, decreasing its holding by 24.03%. This is a normal part of a PE firm's exit strategy, monetizing their investment after the company has gone public.

On the flip side, The Vanguard Group, Inc. increased its position by a substantial 36.67% in November 2025. This isn't a strategic vote of confidence in the same way a hedge fund buy is; it's mostly due to the stock's inclusion or increased weighting in their massive index-tracking funds, like the Vanguard Total Stock Market ETF. Overall, institutional shares (long positions) still increased by 1.95% in the most recent quarter, showing net positive accumulation.

The Strategic Impact of Large Investors

These institutional investors, especially the Private Equity firms, play a direct and active role in Latham Group, Inc.'s stock price and corporate strategy. Pamplona's massive stake, often filed under a Schedule 13D, means they intend to actively pursue changes in business strategy, not just sit passively.

The company's strategic focus on the higher-margin fiberglass pool segment and its expansion into key regions (the 'Sand States') is a direct result of this PE-backed growth mandate. This focus has translated into real financial improvements, like the Q3 2025 gross margin expansion of 300 basis points to 35.4%.

The high institutional ownership-with over 123 million total shares held by institutions-also acts as a double-edged sword for the stock price. It provides a strong floor of confidence, but if a few of the largest holders decide to liquidate their positions simultaneously, the stock price could drop fast. You can learn more about the company's foundation and business model here: Latham Group, Inc. (SWIM): History, Ownership, Mission, How It Works & Makes Money.

Key Investors and Their Impact on Latham Group, Inc. (SWIM)

If you're looking at Latham Group, Inc. (SWIM), the first thing to understand is that it's an institutionally-dominated stock. This isn't a retail-driven play; it's a story largely controlled by private equity and large asset managers. As of the third quarter of fiscal year 2025, institutional investors and VC/PE firms collectively own the vast majority of the company, which means their investment decisions defintely move the stock.

The total institutional ownership, including venture capital (VC) and private equity (PE) firms, is exceptionally high, sitting at over 93% of the outstanding shares. This structure means that a few large players have a disproportionate say in the company's strategic direction, capital allocation, and even its debt profile, which currently stands with total debt at $281 million as of Q3 2025, and a net debt leverage ratio of 2.3.

The Dominant Players: Private Equity and Asset Managers

The investor profile of Latham Group, Inc. (SWIM) is anchored by its private equity roots. The largest shareholder, Pamplona Capital Management, LLC, holds a massive stake, owning approximately 44.4% of the company as of September 30, 2025. This is a control position, giving them significant influence over the board and major corporate actions (like the accretive acquisition of Coverstar).

Other major institutional holders include global giants like BlackRock, Inc. and The Vanguard Group, Inc., alongside prominent hedge funds and investment managers. These passive and active funds are buying in because they see a clear path to margin expansion, driven by the company's shift toward higher-margin fiberglass pools and operational efficiencies.

Here's the quick breakdown of the total ownership structure, which tells you who is really in charge:

• VC/PE Firms: 46.5% of shares
• Institutions (Mutual Funds, etc.): 41.6% of shares
• Hedge Funds: 5.07% of shares
• Individual Insiders: 6.89% of shares

Recent Moves and Investor Sentiment in 2025

The first three quarters of fiscal year 2025 saw significant shifts among the major holders, reflecting a divergence in views on the stock's near-term recovery. For instance, Wynnchurch Capital Partners IV, L.P., a key original investor, significantly reduced their stake, removing 3,600,000 shares in Q1 2025, an estimated value of $23,148,000. This is a classic private equity move: selling down after the initial public offering (IPO) lock-up expires.

But while some PE money was exiting, other major funds were piling in. FMR LLC added 2,689,791 shares to their portfolio in Q1 2025, and Citadel Advisors LLC added 2,476,551 shares in the same quarter. This buying suggests a belief in the company's turnaround story, especially its forecast to grow earnings by 46.36% per year over the next few years. You can read more about the company's foundation and business model here: Latham Group, Inc. (SWIM): History, Ownership, Mission, How It Works & Makes Money.

The buying activity wasn't just on the institutional side. Insider purchases, a strong signal of confidence, were also notable in 2025. Chief Financial Officer Oliver C. Gloe purchased 13,500 shares in May 2025 for an estimated $82,350, and Director Frank J. Dellaquila purchased 5,000 shares in August 2025 for $41,200. Insiders only buy stock for one reason: they think it's undervalued.

Here is a summary of the largest recent institutional and insider activity:

The Influence: Mapping Investor Thesis to Action

The primary influence of these investors, particularly Pamplona Capital Management, LLC with its near-majority stake, is to keep management focused on the long-term growth narrative and margin expansion. They are pushing for the company to capitalize on the secular shift towards fiberglass pools and autocovers, which are higher-margin products. This focus is why Latham Group, Inc. updated its fiscal 2025 guidance, narrowing its Adjusted EBITDA range to between $92 million and $98 million, representing a projected 19% year-over-year growth at the midpoint.

The hedge fund activity, like the significant buying from Citadel Advisors LLC, often signals a belief in a short-to-medium-term catalyst, likely tied to the company's ability to execute on its cost-saving initiatives and its new capital expenditure (CapEx) plan. The revised CapEx for 2025 is lower, now between $22 million and $24 million, down from an earlier estimate, which frees up cash flow and helps delever the balance sheet. Lower CapEx means more focus on operational efficiency, not just massive expansion. That's a key signal for a value-focused investor.

Market Impact and Investor Sentiment

You're looking at Latham Group, Inc. (SWIM) and trying to figure out if the big money is buying in or heading for the exits. The quick answer is that institutional investors hold a massive stake, signaling strong conviction in the long-term fiberglass pool story, but the overall sentiment is currently a cautious Hold due to near-term market headwinds.

Institutional ownership-the percentage of shares held by professional investment firms like mutual funds and hedge funds-stands at a substantial 83.95% of shares outstanding, which is defintely a high vote of confidence from Wall Street. This concentration means that firms like Pamplona Capital Management, which owns a dominant 44.84% stake, and BlackRock, Inc. are the true drivers of the stock's long-term trajectory.

Here's the quick math on who holds the keys:

• Pamplona Capital Management: Holds 51.8 million shares, or 44.84%.
• Wynnchurch Capital: Holds 11.4 million shares, or 9.85%.
• Voss Capital: Holds 5.7 million shares, or 4.91%.

Recent Market Reactions to Ownership Shifts

The stock market's reaction to major investor moves in 2025 has been mixed, reflecting the push-pull between long-term strategic growth and short-term economic uncertainty. For example, in March 2025, a major shareholder, Wynnchurch Capital Partners IV, L.P., offloaded a significant block of 3,494,750 shares, totaling over $22.8 million in value. This kind of large-scale selling from a key early investor typically puts downward pressure on the stock, but it also increases the public float (the number of shares available to trade), which is a necessary step for a company's maturity.

Still, the stock has shown resilience. It surged by 42.7% between June and September 2025, largely on the back of management reaffirming its full-year guidance and delivering strong results in its higher-margin cover segment. Insider sentiment, however, remains negative overall, driven by more open-market selling than buying over the past year. But to be fair, you did see CFO Oliver Gloe purchase 13,500 shares for $82,350 in May 2025, which is a concrete sign of executive confidence.

Analyst Perspectives on Key Investors' Influence

The analyst community views the high institutional ownership as a stabilizing factor, but the consensus rating remains a pragmatic Hold. This is because the overall investment thesis hinges on Latham Group, Inc.'s ability to execute its long-term strategy of gaining market share in fiberglass pools-a segment where they are the leader-and expanding in key regions like the 'Sand States' (Florida and Texas).

Analysts are looking past the current housing market softness, focusing instead on the margin expansion driven by operational efficiencies and the strategic shift toward high-margin products like automatic safety covers. The average 1-year price target from analysts is around $7.95 to $7.96, suggesting an upside of about 29.5% from the November 2025 price of approximately $6.14 per share. What this estimate hides is the wide range of forecasts, from a bearish low of $4.50 to a bullish high of $10.00, reflecting the divergent views on the timing of the market recovery.

Management's reaffirmed full-year 2025 guidance projects net sales growth of 8% and adjusted EBITDA growth of 19% at the midpoints, which is the key data point institutional investors are tracking. The consensus is that the company will generate revenue of approximately $533.2 million in 2025, with earnings around -$11.0 million, as the firm works towards achieving profitability in the next few years. You can explore the foundational business model that supports this outlook in Latham Group, Inc. (SWIM): History, Ownership, Mission, How It Works & Makes Money.

The decrease in short interest by 16.32% recently is a positive technical sign, indicating that some of the bearish bets are being covered, which can fuel short-term price bumps. However, the core of the investment thesis remains tied to the major shareholders who have the patience for a multi-year turnaround and market expansion.