Hagerty, Inc. (NYSE:HGTY) director Robert I. Kauffman has recently sold a significant portion of his holdings in the company, according to the latest SEC filings. Over the course of three days, Kauffman sold a total of 31,570 shares of Hagerty's Class A Common Stock, with transactions totaling approximately $343,264.
The sales occurred on August 15, 16, and 19, with the prices per share ranging from $10.56 to $11.34. The first sale on August 15 involved 10,783 shares at an average price of $10.56. On the following day, Kauffman sold 12,170 shares at an average price of $10.82. The final transaction on August 19 saw 8,617 shares sold at an average price of $11.34.
Post-transaction filings indicate that Kauffman still holds a substantial number of shares indirectly through Aldel LLC, with a reported 5,299,748 shares remaining after the sales. It is noted that Kauffman, as the manager of Aldel LLC, has voting and investment discretion over the securities held by the entity.
The transactions were executed in multiple trades, and the reported prices reflect the weighted average purchase price. Kauffman has undertaken to provide full information regarding the number of shares and the prices at which the transactions were effected, upon request to the SEC staff, the issuer, or a security holder of the issuer.
These sales were made under a Rule 10b5-1 trading plan, which was adopted by Kauffman on August 11, 2023. Such plans allow company insiders to establish pre-arranged plans to buy or sell company stock at a predetermined time to avoid accusations of insider trading.
Investors and market watchers often monitor insider transactions as they may provide insights into the executive's view of the company's current valuation and future prospects.
In other recent news, Hagerty, the insurance and valuation company for collector cars, has reported impressive second-quarter results for 2024, exceeding market expectations for the sixth consecutive quarter. Notably, the company's written premiums saw an 18% growth in the first half of the year, contributing significantly to its overall performance.
Hagerty's strategic hires and emphasis on enhancing member experiences have fortified their business model, which aims for a steady increase in revenue. The company has raised its full-year outlook, projecting revenue between $1.16 billion and $1.18 billion, net income between $76 million and $84 million, and adjusted EBITDA forecasts ranging from $130 million to $140 million.
Despite potential risks posed by a volatile interest rate environment, Hagerty remains optimistic about its continued growth. The company's investment strategy shift to investment-grade bonds is anticipated to reduce risk and improve returns.
These recent developments underline Hagerty's commitment to improving loyalty and the member experience, while also expanding its marketplace and controlling underwriting profits. The company's focus on special cars and their owners places it favorably in a niche market with significant potential.
InvestingPro Insights
In the wake of the recent insider transactions at Hagerty, Inc. (NYSE:HGTY), investors are keenly observing the company's financial health and growth prospects. According to InvestingPro data, Hagerty's market capitalization stands at $3.76 billion, with a notably high Price/Earnings (P/E) ratio of 97.94. However, when adjusted for the last twelve months as of Q2 2024, the P/E ratio improves to 44.96, suggesting a more favorable earnings outlook as time progresses.
The company's revenue growth has been robust, with a 23.75% increase over the last twelve months leading up to Q2 2024. This is further underscored by a gross profit margin of 57.7%, indicating that Hagerty is not only increasing its sales but is also efficiently managing its cost of goods sold to maintain profitability.
One InvestingPro Tip that stands out for Hagerty is the strong return over the last three months, with a price total return of 26.9%. This performance is indicative of the market's positive reception to the company's operational results and future potential. Additionally, the company is trading near its 52-week high, at 99.3% of this peak value, reflecting investor confidence in the stock's current trajectory.
For those interested in digging deeper, InvestingPro offers a wealth of additional tips, including insights on earnings revisions by analysts and the company's P/E ratio in relation to its near-term earnings growth. In fact, there are 10 more InvestingPro Tips available that can provide investors with a comprehensive understanding of Hagerty's financial position and market performance. These tips are accessible through InvestingPro's platform at https://www.investing.com/pro/HGTY.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.