Robert I. Kauffman, a director at Hagerty, Inc. (NYSE:HGTY), a $3.26 billion market cap insurance company with 21% revenue growth over the last twelve months, recently sold shares of the company's Class A common stock, according to a filing with the Securities and Exchange Commission. The transactions, executed under a pre-arranged trading plan, took place over three days at the end of December. According to InvestingPro analysis, the stock's RSI suggests oversold conditions, making this insider activity particularly noteworthy.
On December 27, Kauffman sold 3,519 shares at a weighted average price of $9.83. This was followed by another sale on December 30, involving 3,878 shares at an average price of $9.57. Finally, on December 31, he sold 4,982 shares at an average price of $9.62. The total value of these transactions amounted to $119,631, with prices ranging from $9.57 to $9.83. The stock has declined over 5% in the past week, with InvestingPro subscribers gaining access to real-time insider trading analysis and 8 additional key insights about HGTY's valuation and growth prospects.
These sales were conducted through Aldel LLC, where Kauffman holds management responsibilities and has voting and investment discretion. Following these transactions, Kauffman retains ownership of 4,437,477 shares indirectly through Aldel LLC, along with 53,474 shares held directly.
In other recent news, Hagerty Inc. witnessed robust growth in its third-quarter 2024 earnings call, despite industry challenges. The company reported a 20% surge in total revenue, reaching $323 million, and added a record 275,000 new members. This led to a 16% increase in written premiums for the year. Despite losses from Hurricane Helene, Hagerty posted an operating income of $60 million and adjusted EBITDA of $105 million. The company's anticipated total revenue for 2024 stands at approximately $1.18 billion, with a projected net income between $65 million and $74 million.
However, analysts at Raymond (NS:RYMD) James recently downgraded Hagerty's stock from Market Perform to Underperform due to valuation concerns. The company is currently trading at approximately 34 times their estimated earnings per share for 2025, which is significantly higher than the average for its industry peers. Raymond James' analysis indicates that Hagerty's financial metrics are being valued more richly than those of its peers, prompting the rating adjustment.
Looking ahead, Hagerty plans to launch its Enthusiast Plus business in early 2025. These recent developments underscore the company's commitment to enhancing member experience amid industry challenges.
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