Robert I. Kauffman, Principal at Hagerty, Inc. (NYSE:HGTY), the $3.26 billion insurance company with revenue growth of 21% over the last twelve months, recently sold shares of the company’s Class A common stock, according to a filing with the Securities and Exchange Commission. The transactions, carried out according to a pre-agreed trading plan, took place over three days at the end of December. According to InvestingPro analysis, the stock’s RSI suggests oversold conditions, making this insider activity particularly noteworthy.
On December 27, Kauffman sold 3,519 shares at a weighted average price of $9.83. This was followed by another sale on December 30, involving 3,878 shares at an average price of $9.57. Finally, on December 31, he sold 4,982 shares at an average price of $9.62. The total value of these transactions was $119,631, and prices ranged from $9.57 to $9.83. The stock is down more than 5% in the past week, with InvestingPro subscribers get access to real-time insider trading analysis and 8 additional key insights on HGTY’s valuation and growth prospects.
These sales were made through Aldel LLC, where Kauffman has management responsibilities and voting and investment rights. Following these transactions, Kauffman retains ownership of 4,437,477 shares indirectly through Aldel LLC, along with 53,474 shares held directly.
In other recent news, Hagerty Inc. witnessed strong growth in its Q3 2024 earnings call, despite industry challenges. The company reported a 20% increase in total revenue, reaching $323 million, and added a record 275,000 new members. This led to an increase in the premium charged for the year by 16%. Despite losses from Hurricane Helena, Hagerty posted operating income of $60 million and adjusted EBITDA of $105 million. The company’s expected total revenue for 2024 is approximately $1.18 billion, with projected net income between $65 million and $74 million.
However, analysts at Raymond (NS:) James recently downgraded Hagerty’s stock from market perform to underperform due to valuation issues. The company currently trades at approximately 34 times their estimated 2025 earnings per share, which is significantly higher than the average for industry peers. Analysis by Raymond James indicates that Hagerty’s financial metrics are valued higher than those of its peers, prompting a rating correction.
Looking ahead, Hagerty plans to launch its Enthusiast Plus business in early 2025. These recent developments underscore the company’s commitment to improving the member experience amid industry challenges.
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