Robert Kauffman, a director at Hagerty, Inc. (NYSE:HGTY), recently sold shares of the company's Class A common stock. According to a recent SEC filing, Kauffman disposed of a total of 17,940 shares over three days, from October 22 to October 24, 2024. The sales were conducted at prices ranging from $10.37 to $10.59 per share, amounting to a total transaction value of approximately $188,131.
These transactions were executed under a Rule 10b5-1 trading plan, which allows insiders to set up a predetermined plan to sell stocks. Post-transaction, Kauffman holds 5,053,448 shares indirectly through Aldel LLC, where he has voting and investment discretion over the securities.
In other recent news, Hagerty Inc. has made significant strides in expanding its business operations. The insurance provider recently completed the acquisition of Consolidated National Insurance Company for a cash consideration of roughly $18.4 million. This strategic move is expected to bolster Hagerty's offerings and market presence in the insurance industry.
In terms of financial performance, Hagerty has surpassed market expectations for the sixth consecutive quarter in Q2 of 2024. The company's written premiums saw an 18% increase in the first half of the year, largely attributed to strategic hires and efforts to enhance member experiences. As a result, Hagerty has raised its full-year outlook, now anticipating revenue between $1.16 billion and $1.18 billion, with a projected net income between $76 million and $84 million. Adjusted EBITDA forecasts are expected to range from $130 million to $140 million.
Despite the volatile interest rate environment, which may affect projected income levels, Hagerty remains optimistic about its growth strategy in the vibrant collector car market. The recent developments reflect the company's commitment to capitalizing on growth opportunities and enhancing its competitive edge within the insurance industry.
InvestingPro Insights
As we examine Robert Kauffman's recent stock sale at Hagerty, Inc. (NYSE:HGTY), it's important to consider the broader financial context of the company. According to InvestingPro data, Hagerty boasts a market capitalization of $3.57 billion, indicating its significant presence in the insurance industry.
The company's financial performance has been noteworthy, with revenue growth of 23.75% over the last twelve months as of Q2 2024, reaching $1.11 billion. This robust top-line growth is complemented by a strong gross profit margin of 57.7%, suggesting efficient cost management.
InvestingPro Tips highlight that Hagerty's net income is expected to grow this year, which could be a positive signal for investors. Additionally, the company is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.2, potentially indicating an undervalued stock.
However, it's worth noting that Hagerty is trading at a high Price / Book multiple of 38.29, which may raise questions about its valuation relative to its assets. This high multiple could be justified by the company's growth prospects or intangible assets not fully reflected on the balance sheet.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for Hagerty, providing a deeper dive into the company's financial health and market position.
As the market digests the news of Kauffman's stock sale, these financial metrics and insights offer valuable context for understanding Hagerty's current standing and future potential.
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