In a recent move, Robert I. Kauffman, a director at Hagerty, Inc. (NYSE:HGTY), an insurance brokerage firm, has sold a notable number of shares in the company. Over a span of three days, Kauffman has disposed of a total of 26,780 shares, resulting in proceeds exceeding $260,000.
The transactions, which took place between June 3rd and June 5th, saw shares being sold at prices ranging from $9.71 to $9.93. On the first day, Kauffman sold 9,630 shares at an average price of $9.71. The following day, an additional 9,872 shares were sold for an average of $9.82 each. The final day witnessed the sale of 7,278 shares at an average price of $9.93.
These sales were conducted under a Rule 10b5-1 trading plan, which Kauffman had previously adopted on August 11, 2023. This plan allows company insiders to establish pre-planned transactions at a time when they are not in possession of material non-public information, to avoid potential accusations of insider trading.
Post-transaction, Kauffman's indirect ownership through Aldel LLC, where he has voting and investment discretion, stands at 3,336,880 shares of Class A Common Stock. It's important to note that Kauffman has disclaimed beneficial ownership of these securities, except to the extent of his pecuniary interest.
Investors and market watchers often pay close attention to insider trading patterns as they can provide insights into how the company's executives view the stock's value and future prospects. However, it's also common for executives to sell shares for personal financial planning reasons unrelated to their outlook on the company.
Hagerty, Inc., known for its specialty in insurance for classic cars and other vehicles, continues to operate out of its headquarters in Traverse City, Michigan. The company has not made any public comments regarding these recent transactions by Director Kauffman.
In other recent news, Hagerty has reported a strong performance for the first quarter of 2024. The company witnessed significant growth in both commission revenue, which rose by 19%, and marketplace revenue, which surged by 58%. This growth was attributed to an increase in written premiums, more listings, and higher auction sales. The company also reported improved operating margins, an increase in net income by $23 million, and a growth in adjusted EBITDA by $21 million.
Hagerty's positive outlook for 2024 includes expectations of continued revenue growth of 15-17% and a net income forecast of $61 million to $70 million. The company's financial position is bolstered by strategic partnerships and upcoming product launches, including the Enthusiast Plus product set to launch in 2025 and 2026.
In addition to these developments, Hagerty has detailed its debt structure, revealing $29 million in back leverage against collectible car loans. An investor event is also scheduled for May 31, where the company plans to elaborate on its long-term growth strategies. These are among the latest developments for Hagerty as it continues to show robust growth and expansion in its marketplace.
InvestingPro Insights
Amidst the insider trading activity at Hagerty, Inc. (NYSE:HGTY), the company's financial outlook presents an interesting picture for investors. According to InvestingPro data, Hagerty's market capitalization stands at a robust $3.32 billion. The company has exhibited a strong revenue growth of 25.7% over the last twelve months as of Q1 2024, reflecting its expanding market presence in the niche of classic car insurance. Additionally, Hagerty's price is trading near its 52-week high, at 99.9% of the peak value, which indicates a sustained investor confidence in the company's stock.
From an earnings perspective, Hagerty demonstrates potential for growth, as highlighted by InvestingPro Tips. Analysts have revised their earnings upwards for the upcoming period, signaling optimism regarding the company's profitability. Furthermore, the company is expected to grow its net income this year, which may justify the high Price/Book multiple of 35.97, as investors anticipate future earnings to justify the current valuation.
For those seeking a deeper dive into Hagerty's performance and future potential, InvestingPro offers additional tips. There are 6 more InvestingPro Tips available, which could provide valuable insights for making informed decisions. Interested investors can access these tips and more detailed metrics by visiting InvestingPro at: https://www.investing.com/pro/HGTY. Moreover, users can take advantage of an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
It is also worth noting that Hagerty does not pay a dividend to shareholders, which could be a consideration for those investors seeking regular income streams from their investments. As the company continues to navigate the competitive landscape of specialty insurance, these financial metrics and insider trading activities will be closely watched by market participants.
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