In recent trading activity, Robert I. Kauffman, a director at Hagerty, Inc. (NYSE:HGTY), sold a significant amount of company stock, totaling over $238,000. The transactions occurred over a span of three days, with prices ranging between $10.46 and $10.48 per share.
On the first day of the reported transactions, Kauffman sold 8,001 shares at an average price of $10.48. The following day, he continued by selling 7,075 shares with the price slightly dropping to an average of $10.46. The selling streak concluded with a sale of 7,727 shares, once again at an average price of $10.46 per share.
The sales were executed under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which Kauffman adopted on August 11, 2023. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time, providing a legal defense against accusations of trading on nonpublic information.
Following these transactions, Kauffman's holdings in the insurance and brokerage services company are indirectly held through Aldel LLC, where he serves as a manager with voting and investment discretion over the securities. It is noted that he disclaims beneficial ownership of these securities, except to the extent of his pecuniary interest.
Investors and followers of Hagerty, Inc. will be keeping a watchful eye on insider trading patterns as they can provide valuable insights into a company's performance and the confidence level of its executives and directors.
In other recent news, Hagerty, the insurance and valuation firm for collector cars, has reported a strong performance for the second quarter of 2024, exceeding market expectations for the sixth consecutive time. The company's written premiums saw an 18% growth in the first half of the year, contributing to the overall positive results. As a result of strategic hires and a focus on enhancing member experiences, Hagerty has raised its full-year outlook, predicting revenue between $1.16 billion and $1.18 billion, net income between $76 million and $84 million, and adjusted EBITDA forecasts ranging from $130 million to $140 million.
These recent developments include an expected 16% to 18% total revenue growth with a 14% to 15% increase in written premium. The company also anticipates a 30% incremental margin increase from 2022 to 2024 and aims for high-teen to nearly 20% operating profit margins in the next two to three years. Hagerty's transition in investment strategy from cash to investment-grade bonds has improved cash flow.
Despite potential risks from the volatile interest rate environment, Hagerty remains optimistic about its growth prospects. The firm's business model and strategic initiatives are expected to sustain compounding growth in revenue. Through improving loyalty and member experience, controlling underwriting profits, and building its marketplace, Hagerty is focused on capitalizing on its growth opportunities in the vibrant collector car market.
InvestingPro Insights
As investors examine the recent insider trading activity at Hagerty, Inc. (NYSE:HGTY), it's valuable to consider the company's financial performance and market position. According to InvestingPro data, Hagerty currently holds a market capitalization of $3.59 billion, indicating a substantial presence in its sector. Despite a high Price/Earnings (P/E) ratio of 97.94, the adjusted P/E ratio for the last twelve months as of Q2 2024 stands at a more moderate 41.32. This suggests that investors are anticipating growth in the company's earnings.
Additionally, the company's Price to Book (P/B) ratio during the same period is 37.68, which could be seen as high, potentially reflecting investor confidence in the company's future growth and the value of its assets. This aligns with one of the InvestingPro Tips, which highlights that Hagerty is trading at a high earnings multiple. The company's revenue growth also remains robust, with a 23.75% increase over the last twelve months as of Q2 2024, further underlining its expanding operations.
An InvestingPro Tip points out that analysts have revised their earnings upwards for the upcoming period, which may provide additional assurance to investors about the company's prospects. Furthermore, the company has experienced a strong return over the last three months with an 18.31% price total return, and a notable 26.71% return over the last six months, suggesting a positive trend in the stock's performance.
For those looking to delve deeper into Hagerty's potential, InvestingPro offers additional insights and tips, with a total of 10 InvestingPro Tips available for HGTY at https://www.investing.com/pro/HGTY. These tips could provide investors with a more nuanced understanding of the company's financial health and future outlook.
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