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. The transactions, executed on October 17, 18, and 21, involved the sale of a total of 9,238 shares, with prices ranging from $10.47 to $10.71 per share. The total value of these sales amounted to $97,945.
Following these transactions, Kauffman holds 5,071,388 shares indirectly through Aldel LLC, where he has voting and investment discretion. The sales were carried out under a pre-established Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling stocks to avoid accusations of insider trading.
In other recent news, Hagerty, the insurance provider, has made significant strides in its business operations. The company recently completed the acquisition of Consolidated National Insurance Company for a cash consideration of approximately $18.4 million, a strategic move expected to bolster its offerings and market presence.
In addition to this, Hagerty has been surpassing market expectations for six consecutive quarters. The second quarter of 2024 saw a significant increase in the firm's written premiums by 18% in the first half of the year, a growth attributed to strategic hires and efforts to enhance member experiences.
The firm 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, and adjusted EBITDA forecasts are expected to range from $130 million to $140 million.
Despite potential challenges such as the volatile interest rate environment, Hagerty continues to focus on capitalizing on growth opportunities. These developments reflect the company's commitment to expanding its business operations and services, closely watched by investors and market analysts for their potential impact on Hagerty's financial performance.
InvestingPro Insights
To provide additional context to Robert Kauffman's recent stock sales, let's examine some key financial metrics and insights for Hagerty, Inc. (NYSE:HGTY).
According to InvestingPro data, Hagerty has a market capitalization of $3.61 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 notable revenue growth of 23.75% over the same period.
One InvestingPro Tip highlights that Hagerty's net income is expected to grow this year, which could be a positive sign for investors despite the recent insider sale. This growth expectation aligns with the company's strong revenue performance and may indicate improving profitability.
Another relevant InvestingPro Tip notes that Hagerty is trading at a low P/E ratio relative to its near-term earnings growth. This suggests that the stock might be undervalued compared to its growth prospects, which could explain why the director's sale was limited to a relatively small portion of his holdings.
It's worth noting that Hagerty's P/E ratio (adjusted) for the last twelve months as of Q2 2023 is 41.56, while its PEG ratio is a low 0.2. These figures support the notion of potential undervaluation, especially considering the expected earnings growth.
For investors interested in a more comprehensive analysis, InvestingPro offers additional tips and insights beyond what we've discussed here. In fact, there are 6 more InvestingPro Tips available for Hagerty, which could provide a fuller picture of the company's financial health and market position.
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