TRAVERSE CITY, MI – Hagerty, Inc. (NYSE:HGTY), a Delaware-based company specializing in insurance services, has concluded the exchange of its outstanding warrants, resulting in the issuance of Class A common stock and the suspension of warrant trading on the New York Stock Exchange (NYSE).
On Thursday, the company announced the completion of a mandatory exchange of 1,052,503 warrants for 189,438 shares of its Class A common stock. Following this transaction, no public warrants remain outstanding, leading to the delisting of the warrants from the NYSE.
The completed exchange follows Hagerty's previous offer, which, combined with the mandatory exchange, resulted in the issuance of 3,876,201 shares of Class A common stock in exchange for 19,483,539 warrants. The company's decision to settle the outstanding warrants through this exchange offer has streamlined its capital structure and simplified its public trading instruments.
This move comes as a significant corporate action for Hagerty, as it affects both current warrant holders and the company's stock profile on the NYSE. The delisting of the warrants marks the end of their trading and is a step towards consolidating the company's equity instruments.
The information about this corporate event is based on a press release statement filed with the Securities and Exchange Commission (SEC).
In other recent news, Hagerty, Inc. has reported significant growth in its Q1 2024 earnings, with a net income increase of $23 million and adjusted EBITDA growth of $21 million. This strong performance has led to a positive 2024 outlook, forecasting revenue growth of 15-17% and a net income between $61 million to $70 million.
In a strategic move, Hagerty has also added insurance veteran Tony Kuczinski to its Board of Directors. Kuczinski, with a 34-year tenure at Munich Reinsurance US Holdings, brings extensive experience and expertise to Hagerty's boardroom. His appointment is expected to contribute significantly to the company's future growth plans.
In addition to these developments, Hagerty is focusing on strategic initiatives, including expanding its collectible car marketplace and controlling underwriting profits. The company is also preparing for the launch of a new product, Enthusiast Plus, in the coming years.
InvestingPro Insights
As Hagerty, Inc. (NYSE:HGTY) advances with its strategic initiatives and corporate actions, such as the recent exchange of outstanding warrants, the company's financial health and growth prospects come into focus. With a market capitalization of $3.67 billion, Hagerty is positioned as a significant player in the insurance services sector. The company's recent earnings report, indicating a net income increase and substantial adjusted EBITDA growth in Q1 2024, corroborates with the InvestingPro Tips suggesting that net income is expected to grow this year.
An analysis of Hagerty's stock reveals that it's trading at a high Price / Book multiple of 39.85, which may reflect the market's high valuation of the company's assets relative to its equity. Additionally, the company has experienced a robust return over the last three months, with a 23.63% increase in price total return, showcasing investor confidence and market momentum. This aligns with another InvestingPro Tip highlighting a strong return over the last month.
Investors interested in deeper insights can find more InvestingPro Tips tailored to Hagerty at https://www.investing.com/pro/HGTY. For a limited time, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 9 additional tips available on InvestingPro that can further inform investment decisions regarding Hagerty, Inc.
In summary, the recent corporate developments and the positive financial trajectory indicated by the latest earnings report are reflected in the company's real-time metrics and InvestingPro Tips. These insights provide investors with a comprehensive view of Hagerty's market position and future outlook.
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