In recent transactions, Robert I. Kauffman, a director at Hagerty, Inc. (NYSE:HGTY), an insurance brokerage firm, sold a significant amount of company stock. The sales occurred over a series of days, with Kauffman disposing of 7,933 shares at an average price of $10.70, 3,147 shares at $10.77, and 3,683 shares at $10.78. Collectively, these sales amounted to over $158,479.
The transactions took place between October 9 and October 11, according to the latest filings. The sales were executed in multiple trades, with prices for the shares varying within a range. On October 9, the shares were sold at prices ranging from $10.50 to $10.76, while on the following days, the prices ranged from $10.71 to $10.86, as per the weighted average prices reported.
It is noted that the sales were made in accordance with a Rule 10b5-1 trading plan, which Kauffman had adopted on August 11, 2023. Such plans are often used by insiders to sell their holdings in a manner that is compliant with insider trading laws, allowing them to sell shares over a predetermined schedule.
Following these transactions, Kauffman's remaining stake in Hagerty is indirectly held through Aldel LLC, where he serves as the manager with voting and investment discretion over the securities. The filings indicate that Kauffman disclaims beneficial ownership of these reported securities, except to the extent of his pecuniary interest.
Investors and followers of Hagerty, Inc. can stay informed of insiders' stock transactions, which are public records and can provide insights into the company's financial health and executives' perspectives.
In other recent news, Hagerty, the insurance provider, has completed the acquisition of Consolidated National Insurance Company for a cash consideration of approximately $18.4 million. This strategic move is seen as part of Hagerty's broader plan to enhance its service offerings and competitive edge within the insurance industry. In another development, Hagerty has reported strong second-quarter results for 2024, surpassing market expectations for the sixth consecutive time. The firm's written premiums saw a significant 18% increase in the first half of the year, largely attributed to strategic hires and efforts to enhance member experiences. Hagerty has revised its full-year outlook upward, now expecting revenue between $1.16 billion and $1.18 billion, with net income projected to be between $76 million and $84 million. Adjusted EBITDA forecasts range from $130 million to $140 million. Despite potential risks from the volatile interest rate environment, the company remains optimistic about its future trajectory. These recent developments reflect Hagerty's commitment to growth and expansion in the collector car market.
InvestingPro Insights
To provide additional context to Robert I. Kauffman's recent stock sales, let's examine some key financial metrics and insights for Hagerty, Inc. (NYSE:HGTY).
According to InvestingPro data, Hagerty's market capitalization stands at $3.66 billion, reflecting its position in the insurance brokerage sector. The company has demonstrated strong revenue growth, with a 23.75% increase in the last twelve months as of Q2 2023, reaching $1.11 billion. This growth trend aligns with one of the InvestingPro Tips, which indicates that net income is expected to grow this year.
Hagerty's price-to-earnings (P/E) ratio is currently at 104.02, which is considered high. However, when adjusted for the last twelve months as of Q2 2023, the P/E ratio drops to 42.66. This discrepancy is interesting in light of another InvestingPro Tip suggesting that the company is trading at a low P/E ratio relative to near-term earnings growth. The PEG ratio of 0.2 further supports this view, indicating that the stock might be undervalued relative to its earnings growth potential.
It's worth noting that Hagerty has seen a significant price uptick over the last six months, with a 26.35% total return. This performance could be a factor in Kauffman's decision to sell some shares, possibly to realize gains or rebalance his portfolio.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Hagerty, providing a deeper understanding of the company's financial position and market performance.
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