Hagerty, Inc. (NYSE:HGTY) director Robert I. Kauffman has sold a total of $204,492 worth of company stock, according to a recent SEC filing. The transactions, which took place between July 25 and July 29, were executed under a pre-arranged trading plan.
Kauffman's sales occurred over three separate days, with prices per share ranging from $10.97 to $11.03. On July 25, he sold 2,955 shares at an average price of $10.97. The following day, an additional 8,005 shares were sold at an average of $10.98 per share. The final sale on July 29 involved 7,632 shares at an average price of $11.03.
The sales were made through a Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for buying or selling stocks at a time when they are not in possession of material non-public information. This plan was adopted by Kauffman on August 11, 2023.
Following these transactions, Kauffman's remaining holdings in Hagerty, Inc. were indirectly owned through Aldel LLC, where he serves as the manager with voting and investment discretion over the securities. The shares sold were also held by Aldel LLC, and Kauffman has disclaimed beneficial ownership of these securities, except to the extent of his pecuniary interest.
Investors and market watchers often pay close attention to insider trading patterns as they can provide valuable insights into a company's health and the confidence that executives and directors have in the business's future prospects.
"In other recent news, Hagerty, Inc. reported robust financial growth in the first quarter of 2024, with a noteworthy surge in commission and marketplace revenue. The company's net income increased by $23 million, and adjusted EBITDA grew by $21 million. The firm's outlook for 2024 forecasts a revenue growth of 15-17% and a net income between $61 million to $70 million.
In addition to its financial performance, Hagerty recently welcomed Anthony J. Kuczinski, an insurance veteran with a 34-year tenure at Munich Reinsurance US Holdings, to its Board of Directors. Kuczinski, who also holds board positions with Skyward Specialty Insurance Group and Ryan Specialty, is expected to bring valuable experience to Hagerty's boardroom.
Hagerty also successfully completed its warrant exchange offer, with significant holder participation surpassing the 50% consent threshold required to amend the warrant agreements. Following these amendments, Hagerty exercised its right to exchange the remaining warrants for shares of Class A Common Stock.
In terms of strategic initiatives, Hagerty is focusing on expanding its collectible car marketplace and controlling underwriting profits. The company is preparing for the launch of a new product, Enthusiast Plus, in the coming years. These recent developments underscore Hagerty's commitment to reinforcing its market position."
InvestingPro Insights
In light of the recent insider trading activity at Hagerty, Inc. (NYSE:HGTY), investors might be curious about the company's financials and market performance. According to real-time data from InvestingPro, Hagerty appears to be in a unique position in the market. The company's Market Cap stands at $3.72 billion, which reflects its overall valuation in the current marketplace.
One notable metric is the company's Price/Earnings (P/E) Ratio. As of the last twelve months leading up to Q1 2024, the adjusted P/E Ratio for Hagerty is 56.8. While this may seem high, it is important to consider that the company's net income is expected to grow this year, which could justify the current earnings multiple. Moreover, the PEG Ratio, which measures the P/E relative to earnings growth, is 0.31—a figure that suggests the stock could be undervalued relative to its earnings growth potential.
Hagerty's stock has also experienced a significant price uptick, with a 25.77% return over the last three months and an impressive 34.89% return over the last six months. This strong performance is an essential factor for investors to consider, as it reflects the market's current optimism about the company's prospects.
For those looking to dive deeper into Hagerty's financials and market performance, InvestingPro offers additional insights. There are currently 6 more InvestingPro Tips available, which could provide investors with a more comprehensive understanding of the company's potential. To explore these tips and gain a richer analysis, investors can visit: https://www.investing.com/pro/HGTY.
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