Robert Kauffman, a director at Hagerty, Inc. (NYSE:HGTY), recently sold shares of the company's Class A common stock, according to a filing with the Securities and Exchange Commission. Over a series of transactions from October 30 to November 1, Kauffman sold a total of 18,168 shares, yielding approximately $196,753. The shares were sold at prices ranging from $10.73 to $10.92.
These sales were conducted under a Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling shares, thus helping to avoid any potential accusations of insider trading. Post-transaction, Kauffman holds 5,034,217 shares indirectly through Aldel LLC, where he has voting and investment discretion.
Investors may find these transactions noteworthy, as insider trading activity can sometimes provide insight into a company's future performance. However, it's important to note that such sales can occur for a variety of reasons unrelated to the company's prospects.
In other recent news, Hagerty, an insurance provider, has successfully completed the acquisition of Consolidated National Insurance Company for a cash consideration of approximately $18.4 million. This strategic move is expected to strengthen Hagerty's market presence and expand its service offerings within the insurance industry. On the financial front, Hagerty has surpassed market expectations for the sixth consecutive quarter with an 18% increase in written premiums in the first half of the year. This growth is attributed to strategic hires and an emphasis on enhancing member experiences.
Hagerty has also revised its full-year outlook upward, now anticipating revenue between $1.16 billion and $1.18 billion. The company's net income is projected to be between $76 million and $84 million, with adjusted EBITDA forecasts ranging from $130 million to $140 million. These figures reflect the company's robust performance and strategic initiatives, which analysts expect to sustain compounding growth in revenue. Despite the volatile interest rate environment posing potential risks, Hagerty remains optimistic about maintaining its growth trajectory. These are recent developments that highlight the company's strategic decisions and financial performance.
InvestingPro Insights
To provide additional context to Robert Kauffman's recent stock sale, let's examine some key financial metrics and insights from InvestingPro for Hagerty, Inc. (NYSE:HGTY).
According to InvestingPro data, Hagerty has a market capitalization of $3.67 billion, positioning it as a mid-cap company in the insurance sector. The company's revenue for the last twelve months as of Q2 2023 stood at $1.11 billion, with a robust revenue growth of 23.75% over the same period.
One InvestingPro Tip highlights that Hagerty is trading at a low P/E ratio relative to its near-term earnings growth. This could suggest that the stock may be undervalued compared to its earnings potential, which might be of interest to value-oriented investors considering the recent insider sale.
Another relevant InvestingPro Tip indicates that net income is expected to grow this year. This positive outlook on profitability aligns with the company's strong revenue growth and could potentially offset concerns about the insider selling activity.
It's worth noting that Hagerty's P/E ratio (adjusted) for the last twelve months as of Q2 2023 is 43.06, which is considerably lower than the unadjusted P/E of 104.02. This difference suggests that adjustments to earnings have significantly impacted the valuation metrics, potentially providing a more accurate picture of the company's true earnings power.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for Hagerty, which could provide further insights into the company's financial health and market position.
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