Analysis Report on Hayward Holdings (HAYW) CEO's Stock Sales

I will now provide you with a

based on collected data.

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According to SEC Form 4 filings, Hayward Holdings CEO Kevin Holleran has conducted multiple large-scale stock sales recently [1]:

Trade Date	Number of Shares Sold	Average Price	Trade Amount	Percentage of Equity Reduction
December 5, 2025	60,571 Shares	$16.13	$976,910	8.85%
November 3, 2025	60,571 Shares	$16.74	$1,013,716	8.85%
October 1, 2025	60,571 Shares	$15.15	$918,300	8.85%

: After completing the above sales, Kevin Holleran still holds 623,540 shares, valued at approximately $9.71 million based on the current share price [2].

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The following regular patterns can be observed from the trading records [2]:

• Scheduled Sales
  : Equal number of shares sold once per month
• Synchronized Option Exercise
  : Each sale is accompanied by an option exercise purchase (60,571 shares)
• “M-Exempt” Tag
  : Indicates these transactions comply with the SEC’s pre-arranged Rule 10b5-1 plan

: This patterned trading strongly suggests the CEO is executing a , rather than impromptu sales based on non-public information. 10b5-1 plans typically execute automatically around earnings announcements or specific dates, aiming to avoid suspicion of insider trading.

Time Point	Market Environment	Share Price Level
October 1, 2025	Post-Q2 Earnings	$15.15
November 3, 2025	Pre-Q3 Earnings	$16.74
December 5, 2025	Post-Q3 Earnings	$16.13

Notably, the sale on November 3, 2025, occurred before the release of Q3 earnings (October 29, 2025), which further confirms the

of the transactions rather than being based on information advantage.

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Metric	Value	Industry Comparison
ROE (Return on Equity)	9.37%	Above-average
Net Profit Margin	12.62%	Healthy
Current Ratio	3.18	Excellent
Debt Risk	Low Risk	Stable
P/E Ratio	24.50x	Reasonable Range

[4]: The company exhibits , sufficient liquidity, and stable profitability. Its accounting policies show (low depreciation/capital expenditure ratio), but the overall financial condition is healthy.

Scenario	Intrinsic Value	Difference from Current Price
Conservative Scenario	$9.16	-41.2%
Base Scenario	$10.80	-30.7%
Optimistic Scenario	$16.87	+8.3%
Weighted Average Valuation	$12.28	-21.2%

[5]: The current share price of $15.58 has an approximate compared to the DCF weighted valuation, suggesting the market may be overly optimistic about the company’s prospects.

• Q3 FY2025 Revenue
  : $237.18M (2.47% above expectations)
• Q3 FY2025 EPS
  : $0.14 (15.8% above expectations)
• 2025 Full-Year Guidance
  : Raised, with strong performance [3]

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Consideration Factor	Assessment	Explanation
Trading Plan Attribute	✅ Positive	Complies with Rule 10b5-1, eliminating insider trading concerns
Sales Proportion	⚠️ Neutral	Accounts for 8.85% of equity, a moderate level
Timing Selection	✅ Positive	Sold after earnings announcements, consistent with planned transactions
Subsequent Shareholding	✅ Positive	Still holds shares valued at nearly $10 million
Valuation Level	⚠️ Warning	DCF shows the current share price may be overvalued

—— Reasons are as follows:

1. Planned Transactions Reduce Negative Signals
   : The CEO’s sales behavior shows high regularity and complies with a pre-registered 10b5-1 trading plan, which eliminates the typical insider trading concern that “the CEO is fleeing ahead of bad news” [2].

2. Retaining a Large Number of Shares Indicates Confidence
   : Despite selling shares, the CEO still holds over 620,000 shares, indicating that his
   core interests remain aligned with the company
   .

3. Valuation Pressure Deserves Attention
   : The DCF model shows the share price may have a premium of over 20%. Combined with the CEO’s choice to sell at a relatively high level (the $15-$17 range), this may reflect his judgment that
   current valuations have fully priced in expectations
   .

4. Market Has Priced in Positive Outlook
   : The market reacted tepidly after Q3 results exceeded expectations, suggesting investors already have high growth expectations for the company.

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• Mainly Hold a Wait-and-See Attitude
  : There is no need to panic sell due to the CEO’s sales unless there are signals of fundamental deterioration
• Focus on Earnings Reports
  : The upcoming Q4 earnings report to be released on February 26, 2026, will be an important verification point

• Valuation Consideration
  : The current share price is 21% higher than the DCF base valuation; it is recommended to wait for a more reasonable entry point
• Focus on Catalysts
  : Recovery of the real estate market, changes in interest rate environment, launch of new products, etc.

• Subsequent insider trading (whether other executives follow suit in selling shares)
• Changes in analyst ratings
• Changes in institutional holdings
• Changes in short interest ratio (current short interest ratio is 4.67%) [3]

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The transactions comply with Rule 10b5-1 plan characteristics, and the CEO retains significant shareholding interests. However, the current valuation level is relatively high (with an approximate 21% premium over DCF intrinsic value), and combined with the CEO’s choice to cash out at a relatively high level, .

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[1] SEC.gov - Hayward Holdings Form 4 filings (https://www.sec.gov/Archives/edgar/data/1834622/)

[2] InsiderTrades.com - Hayward Holdings CEO Kevin Holleran Stock Sale Report (https://www.insidertrades.com/alerts/nyse-hayw-insider-buying-and-selling-2025-12-10/)

[3] StockStory - Home Construction Materials Stocks Q3 Highlights (https://stockstory.org/us/stocks/nyse/hayw/news/earnings/home-construction-materials-stocks-q3-highlights-hayward-nysehayw)

[4] Jinling AI Financial Analysis Database - Hayward Holdings Financial Analysis

[5] Jinling AI Financial Analysis Database - Hayward Holdings DCF Valuation Analysis