Hagerty, Inc. (NYSE:HGTY) director Robert I. Kauffman has sold a total of $273,684 worth of company stock, according to recent filings with the Securities and Exchange Commission. The transactions, which took place over three consecutive days, involved the sale of Class A Common Stock at prices ranging from $9.95 to $10.23 per share.
On June 11, 2024, Kauffman sold 5,599 shares at an average price of $9.95, followed by the sale of 11,225 shares on June 12 at an average price of $10.10. The sales concluded on June 13 with the disposal of 10,225 shares at an average price of $10.23. These sales were executed in multiple trades, and the prices reported reflect the weighted average purchase price.
Kauffman's transactions were conducted in accordance with a Rule 10b5-1 trading plan, which he adopted on August 11, 2023. Such plans allow company insiders to establish pre-arranged plans to buy or sell company stock at a predetermined time to avoid accusations of insider trading.
Following these transactions, Kauffman directly owns 3,284,066 shares of Hagerty, Inc. The stock sales were held indirectly through Aldel LLC, for which Kauffman serves as the manager and has voting and investment discretion. Kauffman has stated that he disclaims beneficial ownership of the reported securities except to the extent of his pecuniary interest therein.
Investors and the market often monitor insider transactions as they provide insights into executives' confidence in the company's performance and future. However, it's important to note that such transactions do not necessarily predict market movements and may be part of an individual's personal investment strategy.
Hagerty, Inc., headquartered in Traverse City, Michigan, is known for its specialization in insurance for classic cars and other insurance and automotive services.
In other recent news, Hagerty reported a strong performance in the first quarter of 2024, with a significant rise in both commission and marketplace revenue. The company also saw notable improvements in operating margins and a substantial increase in net income and adjusted EBITDA. Hagerty's outlook for 2024 remains positive, with expectations of continued revenue growth and a strong financial position, supported by strategic partnerships and product launches.
Commission revenue rose by 19%, driven by gains in written premiums and strong underwriting results. Marketplace revenue surged by 58%, attributed to more listings and higher auction sales. Net income increased by $23 million, and adjusted EBITDA grew by $21 million. Hagerty reaffirmed its 2024 revenue growth outlook of 15-17% and net income forecast of $61 million to $70 million.
The company has $91 million in long-term debt, with $29 million as back leverage against collectible car loans. Hagerty anticipates a 13-14% growth in written premiums and aims for 11-12% adjusted EBITDA margins in 2024. An investor event is scheduled to discuss long-term growth strategies.
Despite an increase in insurance rates lower than the industry average, the company is experiencing growth in policy count and insured values, and the collectible car marketplace is expanding. Partnerships, like the one with State Farm, are progressing well, and a new product, Enthusiast Plus, is set to launch in the forthcoming years. These developments indicate a promising trajectory for Hagerty in the near future.
InvestingPro Insights
As Hagerty, Inc. (NYSE:HGTY) makes headlines with recent insider transactions, potential investors may find the latest data from InvestingPro insightful for evaluating the company's financial health and stock performance. According to InvestingPro, Hagerty's market capitalization stands at a robust $857.03 million. The company's revenue growth has been impressive, with a notable increase of 25.7% over the last twelve months as of Q1 2024. This growth trajectory is further emphasized by a quarterly revenue growth of 24.44% in Q1 2024, reflecting the company's ability to expand its revenue streams effectively.
Despite not having a current P/E ratio due to negative earnings, the adjusted P/E ratio for the last twelve months as of Q1 2024 is 52.13. This is paired with a PEG ratio of 0.27, indicating that the company may be trading at a low price relative to its near-term earnings growth. An InvestingPro Tip suggests that analysts have revised their earnings upwards for the upcoming period, signaling optimism about the company's future profitability.
Investors should note that the stock is trading near its 52-week high, with the price at 99.9% of this peak, and a recent price of $10 per share matches the fair value estimated by analysts. Additionally, the company is trading at a high Price / Book multiple of 37.15, which could indicate that the market is assigning a high value to the company's net assets. For those interested in further analysis, there are additional InvestingPro Tips available, which can be explored with the use of coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Lastly, it's worth mentioning that Hagerty has been profitable over the last twelve months, reinforcing the company's financial stability. However, it does not pay dividends to shareholders, which could be a significant factor for income-focused investors. With these metrics and insights in mind, individuals can make more informed decisions regarding their investment in Hagerty, Inc.
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