Robert Kauffman, a director at Hagerty, Inc. (NYSE:HGTY), recently sold shares of the company's Class A Common Stock, according to a filing with the Securities and Exchange Commission. The transactions, conducted on November 15 and November 18, involved the sale of 3,191 shares at an average price of $11.18 and 8,995 shares at an average price of $11.16, respectively. The total value of the sales amounted to $136,059.
These sales were carried out under a prearranged Rule 10b5-1 trading plan, which Kauffman adopted in August 2023. Following these transactions, Kauffman, through Aldel LLC, retains ownership of 4,899,716 shares of Hagerty stock.
Kauffman is the manager of Aldel LLC and holds voting and investment discretion over the securities held by the entity. He disclaims beneficial ownership of the securities except to the extent of his pecuniary interest.
In other recent news, Hagerty reported a 20% increase in total revenue, reaching $323 million in the third quarter of 2024, despite facing industry challenges. The growth was fueled by the addition of a record 275,000 new members, contributing to a 16% year-to-date written premium increase. However, the company had to absorb $25 million in losses due to Hurricane Helene. Despite this setback, Hagerty achieved a $60 million operating income and $105 million in adjusted EBITDA. The company projects its total revenue for 2024 to be approximately $1.18 billion, with a net income between $65 million and $74 million, factoring in the impact of recent hurricanes. In terms of future developments, Hagerty is preparing to launch its Enthusiast Plus business in early 2025. These are the recent developments that have been shaping Hagerty's business landscape.
InvestingPro Insights
As Robert Kauffman, a director at Hagerty, Inc. (NYSE:HGTY), reduces his stake in the company, investors might be curious about the current financial health and market position of the specialty insurance provider. According to InvestingPro data, Hagerty boasts a market capitalization of $3.78 billion, reflecting its significant presence in the automotive lifestyle and insurance space.
The company's financial performance has been noteworthy, with revenue growth of 21.13% over the last twelve months as of Q3 2023, reaching $1.15 billion. This robust top-line expansion is complemented by a strong gross profit margin of 56.17%, indicating efficient cost management in its core operations.
InvestingPro Tips highlight that Hagerty is expected to see net income growth this year, which aligns with the company's positive momentum. Additionally, the stock has experienced a large price uptick over the last six months, with a 27.47% total return, suggesting investor confidence in the company's prospects.
While Hagerty trades at a high P/E ratio of 105.05, it's worth noting that the PEG ratio stands at a more modest 0.39, potentially indicating that the stock is undervalued relative to its earnings growth. This could explain why insiders like Kauffman might choose to realize some gains while maintaining a substantial position.
For investors seeking a deeper understanding of Hagerty's valuation and growth prospects, InvestingPro offers 7 additional tips, providing a more comprehensive analysis of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.