In recent trading activity, Robert I. Kauffman, a director at Hagerty, Inc. (NYSE:HGTY), sold a significant number of shares in the automotive lifestyle brand. The transactions, which took place over a series of days, resulted in a total sale worth over $769,000.
According to regulatory filings, on June 20, Kauffman sold 29,240 shares at an average price of $10.27 per share. The following day, an additional 31,176 shares were sold at an average price of $10.40. The sales concluded on June 24, with 13,726 shares being traded at an average price of $10.57. These transactions were executed in multiple trades, with the prices ranging from as low as $9.98 to as high as $10.62.
The sales were conducted under a pre-established trading plan in accordance with Rule 10b5-1, which allows company insiders to set up a predetermined plan for trading stock. This plan had been adopted by Kauffman on August 11, 2023.
Following the sales, Kauffman still holds a substantial number of shares in the company indirectly through Aldel LLC, of which he is the manager. While he has voting and investment discretion over these securities, he disclaims beneficial ownership except to the extent of his pecuniary interest.
Investors often monitor insider trading activities as they can provide insights into an insider’s view of the company’s value. For Hagerty, these recent transactions by a key director are now part of the public record for shareholders and potential investors to consider.
In other recent news, Hagerty reported a strong performance in the first quarter of 2024. The company saw a significant increase in both commission and marketplace revenue, contributing to improved operating margins, a notable rise in net income, and an increase in adjusted EBITDA. The company's growth was driven by gains in written premiums and strong underwriting results, with commission revenue rising by 19% and marketplace revenue surging by 58%.
Hagerty's 2024 outlook remains optimistic, with projections of 15-17% revenue growth and a net income forecast of $61 million to $70 million. The company also anticipates 13-14% growth in written premiums and aims for 11-12% adjusted EBITDA margins in 2024. These projections are supported by strategic partnerships and planned product launches, such as the Enthusiast Plus, set to launch in 2025 and 2026.
Despite a below-average increase in insurance rates, Hagerty is experiencing growth in policy count and insured values. The company's expansion into the collectible car marketplace and the strengthening of partnerships, like the one with State Farm, are further driving growth. Investors and stakeholders are eagerly awaiting an upcoming event on May 31, where Hagerty will elaborate on its long-term growth strategies.
InvestingPro Insights
Amidst the insider trading activity by a director at Hagerty, Inc. (NYSE:HGTY), the company's financial metrics and analyst outlook provide additional context for investors. According to real-time data from InvestingPro, Hagerty boasts a robust revenue growth rate, with the last twelve months as of Q1 2024 showing a significant 25.7% increase. This upward trend is also reflected in the quarterly revenue growth of 24.44% for Q1 2024.
Despite a high P/E ratio of 269.08, the adjusted P/E ratio for the same period stands at a more moderate 53.6, suggesting a potential realignment of market expectations to near-term earnings growth. Furthermore, the company's PEG Ratio for the last twelve months as of Q1 2024 is 0.28, indicating that Hagerty's earnings growth might be undervalued relative to its P/E ratio. Additionally, the company has been trading near its 52-week high, with the price at the previous close standing at $10.42.
InvestingPro Tips highlight that analysts have recently revised their earnings upwards for the upcoming period, and they predict that the company will be profitable this year. These revisions, combined with the current financial metrics, may provide investors with a more nuanced understanding of Hagerty's performance and future prospects.
For those interested in a deeper dive into Hagerty's financial health and future outlook, more InvestingPro Tips are available at https://www.investing.com/pro/HGTY. Additionally, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to comprehensive analysis and exclusive insights.
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