In recent trading activity, Robert I. Kauffman, a director at Hagerty, Inc. (NYSE:HGTY), sold a total of $126,116 worth of the company's Class A Common Stock. The transactions, which took place between September 18 and September 20, 2024, were executed at prices ranging from $10.70 to $11.20 per share.
On September 18, Kauffman sold 3,821 shares at a weighted average price of $11.20, followed by a sale of 2,318 shares on September 19 at an average price of $11.00. The selling spree concluded on September 20 with the disposition of 5,404 shares at a weighted average price of $10.70. Following these transactions, Kauffman still indirectly owns a substantial number of shares through Aldel LLC, amounting to 5,156,835 shares of Hagerty's Class A Common Stock.
These sales were conducted under a Rule 10b5-1 trading plan, which Kauffman had previously adopted on August 11, 2023. Such plans allow company insiders to establish pre-arranged plans to buy or sell stock at a time when they are not in possession of material, non-public information. This enables insiders to avoid allegations of insider trading while providing an orderly method to sell shares over a period of time.
Kauffman, through Aldel LLC, maintains voting and investment discretion over the securities held. However, he disclaims beneficial ownership of these reported securities except to the extent of his pecuniary interest therein.
Investors and followers of Hagerty, Inc. can continue to monitor insider transactions as they provide insights into how top executives and directors engage with their own company's stock.
In other recent news, Hagerty, the insurance service provider, has successfully completed the acquisition of Consolidated National Insurance Company for approximately $18.4 million. This strategic move, aimed at enhancing Hagerty's service offerings and competitive edge within the insurance industry, is part of the company's broader strategy for expansion. On the earnings front, Hagerty has surpassed market expectations for the sixth consecutive quarter in 2024, with written premiums seeing a significant increase of 18% in the first half of the year. This has been attributed to strategic hires and efforts to enhance member experiences.
The company has revised its full-year outlook upward, now anticipating revenue between $1.16 billion and $1.18 billion. Net income is projected to be between $76 million and $84 million, with adjusted EBITDA forecasts ranging from $130 million to $140 million. Analysts note that Hagerty's business model and strategic initiatives are expected to sustain this compounding growth in revenue.
These recent developments, including the acquisition and robust financial performance, reflect Hagerty's commitment to business expansion and revenue growth. However, the company acknowledges the volatile interest rate environment as a potential risk that may affect projected income levels. Despite potential challenges, Hagerty remains focused on capitalizing on growth opportunities in the vibrant collector car market.
InvestingPro Insights
In light of the recent insider trading activity at Hagerty, Inc. (NYSE:HGTY), investors may be keen to understand the company's financial health and future prospects. According to InvestingPro data, Hagerty boasts a market capitalization of $3.74 billion, indicating a substantial presence in its sector. The company's revenue for the last twelve months as of Q2 2024 stands at $1.1 billion, with a notable growth of 23.75%, showcasing its ability to expand its financial top line.
The profitability outlook for Hagerty appears promising, as reflected in the InvestingPro Tips, which highlight that net income is anticipated to grow this year. This is further corroborated by the fact that two analysts have revised their earnings estimates upwards for the upcoming period, signaling confidence in the company's earning potential. Additionally, the company is trading at a low Price/Earnings to Growth (PEG) ratio of 0.21, suggesting that its shares could be undervalued relative to its near-term earnings growth.
It is important to note that Hagerty is trading at a high Price/Book multiple of 38.33, which may suggest a premium valuation compared to its book value. Nevertheless, the company does not pay a dividend, which could be a strategic decision to reinvest earnings into further growth.
For investors seeking a deeper dive into Hagerty's financial metrics and insider trading implications, InvestingPro offers additional insights and tips. Currently, there are 7 more InvestingPro Tips available for Hagerty at https://www.investing.com/pro/HGTY, which could provide valuable context for both short-term traders and long-term investors.
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