In a series of transactions, Robert I. Kauffman, a director at Hagerty, Inc. (NYSE:HGTY), sold a total of $201,141 worth of company stock. The sales occurred between July 22 and July 24, with the prices per share ranging from $11.04 to $11.32.
Kauffman executed these sales through a pre-arranged trading plan, known as a Rule 10b5-1 plan, which he adopted on August 11, 2023. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time to avoid accusations of trading on nonpublic information.
On July 22, Kauffman sold 6,669 shares of Class A Common Stock at a weighted average price of $11.12 per share. The following day, he sold another 6,781 shares at an average price of $11.32. The sales continued on July 24 when Kauffman disposed of 4,549 shares, this time at an average price of $11.04 per share. The reported transactions were executed in multiple trades, and the prices reported reflect the weighted average purchase price.
After these transactions, Kauffman still indirectly owns 5,425,954 shares of Hagerty's stock through Aldel LLC. According to the filing, Kauffman is the manager of Aldel LLC and has voting and investment discretion over the securities held by the LLC. He disclaims beneficial ownership of these reported securities, except to the extent of his pecuniary interest.
Investors often monitor insider buying and selling as it can provide insights into an insider's view of the company's value. However, trades under a 10b5-1 plan are typically planned in advance and may not always reflect the insider's current view of the company's prospects.
In other recent news, Hagerty, Inc. has reported a strong Q1 performance in 2024, with significant growth in both commission and marketplace revenue. The company's net income increased by $23 million, and adjusted EBITDA grew by $21 million. This performance has led to a positive outlook for 2024, forecasting a revenue growth of 15-17% and a net income between $61 million to $70 million.
Additionally, Hagerty announced the successful completion of its warrant exchange offer, with a majority of the outstanding Public Warrants, Private Placement Warrants, and PIPE Warrants being tendered. Following this, Hagerty exercised its right to mandate the exchange of the remaining warrants for shares of Class A Common Stock.
In board-related news, Hagerty has welcomed insurance veteran Anthony J. Kuczinski to its Board of Directors. Kuczinski, with his extensive experience in the insurance sector, is expected to contribute to Hagerty's future growth.
Lastly, the company is preparing for the launch of a new product, Enthusiast Plus, in the coming years. These are part of the recent developments at Hagerty, as it continues to strengthen its position in the market.
InvestingPro Insights
As investors parse through the details of Robert I. Kauffman's recent stock sales from Hagerty, Inc. (NYSE:HGTY), it's crucial to contextualize these transactions with the company's broader financial landscape. According to InvestingPro data, Hagerty is currently trading with a high Price/Earnings (P/E) ratio of 294.87, but this figure is expected to adjust to a more modest 56.53 when considering the last twelve months as of Q1 2024. This suggests a potential normalization of earnings in relation to the company's stock price.
Adding to the financial narrative are the strong performance indicators over recent months. Hagerty has seen a substantial 27.24% return over the last three months and an even more impressive 44.4% price uptick over the last six months, reflecting a robust growth trajectory in the short term. Furthermore, the company's revenue growth remains solid, with a 25.7% increase in the last twelve months as of Q1 2024.
InvestingPro Tips highlight that Hagerty is expected to see net income growth this year and is trading at a low P/E ratio relative to near-term earnings growth, which could be an attractive point for investors considering the stock's future potential. Moreover, with analysts predicting profitability for the year and a strong return over the previous quarter, these insights could offer additional confidence in Hagerty's market position. It's worth noting that the company does not currently pay a dividend to shareholders, which might influence investment strategies focused on income generation.
For those looking to delve deeper into Hagerty's financials and future outlook, InvestingPro offers a suite of additional tips. Currently, there are 9 more InvestingPro Tips available, which could provide valuable guidance for informed investment decisions. Interested readers can explore these insights and take advantage of a special offer using coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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