Robert I. Kauffman, a director at Hagerty, Inc. (NYSE:HGTY), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Kauffman sold a total of 19,951 shares of Class A Common Stock over three transactions between January 10 and January 14, 2025. The shares were sold at prices ranging from $9.32 to $9.45 per share, amounting to a total value of approximately $186,671. According to InvestingPro analysis, the stock currently appears undervalued, with the RSI indicating oversold territory.
The filings indicate that these transactions were executed under a pre-established Rule 10b5-1 trading plan, which Kauffman adopted on August 9, 2024. Following these sales, Kauffman holds 4,385,549 shares indirectly through Aldel LLC, where he exercises voting and investment discretion.
Hagerty, Inc., based in Traverse City, Michigan, specializes in insurance services for classic car enthusiasts.
In other recent news, Hagerty Inc. has seen some significant developments. Despite facing industry challenges, the company reported robust growth in its third-quarter 2024 earnings call. The collectible car insurance leader witnessed a 20% surge in total revenue, reaching $323 million, and added a record 275,000 new members. This contributed to a 16% growth in written premium for the year, with an operating income of $60 million and adjusted EBITDA of $105 million. Hagerty's anticipated total revenue for 2024 stands at approximately $1.18 billion, with a projected net income between $65 million and $74 million.
However, Raymond (NS:RYMD) James analysts recently downgraded Hagerty's stock from Market Perform to Underperform, citing concerns over the company's valuation. The analysts noted that Hagerty is currently trading at approximately 34 times their estimated earnings per share (EPS) for 2025, which is significantly higher than the industry average. This valuation gap was a key factor in the decision to downgrade the stock. Despite this, the company plans to launch its Enthusiast Plus business in early 2025, reflecting its resilience and adaptability in a dynamic market environment.
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